Commissioner Rainier B. Butalid

Report
Title
SALIENT FEATURES OF THE GOCC
GOVERNANCE ACT (R.A. 10149)
Comm. Rainier B. Butalid
9 October 2013
Slide Title
GOCC
SECTOR OVERVIEW
1. Size of the Philippine GOCC Sector
As of end-December 2012, there are 125 GOCCs under the
GCG jurisdiction :
•
71 with Special Charters
•
54 registered under the SEC
2. GOCC Sector Profile
The 125 covered GOCCs have the following financial profile
as of December 2012:
Total Assets
: P5.134 Trillion or over US$125 Billion
Total Liabilities : P2.805 Trillion
Total Net Worth : P2.329 Trillion
Total Net Income : P224.144 Billion
2
Slide Title
GOCC
SECTOR OVERVIEW
3. Classification of the 125 covered GOCCs
Classification
Government Financial Institutions
Trade, Area Development and Tourism
3
No. of GOCCs
33
29
Educational and Cultural
Gaming
Energy and Materials
Agriculture, Fisheries and Food
8
2
15
16
Utilities and Information-Communications
Total
22
125
Slide Title
GOCC
SECTOR OVERVIEW
Total Assets of the Government Corporate Sector (In Billion Php)
GOCC Sector
Government Financial Institutions
Trade, Area Development and Tourism
Educational and Cultural
Gaming
Energy and Materials
Agriculture, Fisheries and Food
Utilities and Information-Communications
Total
4
As of Dec. 2012
2,834
247
5
48
1,506
56
438
5,134
Slide Title
GOCC
SECTOR OVERVIEW
•
Significant number of GOCCs burdened by noncommercial functions and therefore needed
government financial support
SUPPORT
Subsidy
Equity
2012 AMOUNT (IN BILLION PHP)
40.489
0.900
Net Lending
27.267
TOTAL
68.656
Source: Bureau of the Treasury (Amounts are exclusive of GOCCs
outside the GCG’s coverage)
5
GOCC
GOVERNANCE ACT OF 2011
Slide Title
AN ACT TO PROMOTE FINANCIAL VIABILITY AND
FISCAL DISCIPLINE IN GOVERNMENT-OWNED OR –
CONTROLLED CORPORATIONS AND TO STRENGTHEN
THE ROLE OF THE STATE IN ITS GOVERNANCE AND
MANAGEMENT TO MAKE THEM MORE RESPONSIVE
TO THE NEEDS OF PUBLIC INTEREST AND FOR
OTHER PURPOSES
6
COVERAGE
Slide Title
Applicable to all GOCCs, GICPs/GCEs, and
government financial institutions, including their
subsidiaries, but excluding:
(a)
(b)
(c)
(d)
(e)
(f)
7
The Bangko Sentral ng Pilipinas;
State Universities and Colleges;
Cooperatives;
Local Water Districts;
Economic Zone Authorities; and
Research Institutions.
THRUSTS
Slide TitleOF THE NEW PARADIGM
1. Directors and Officers of GOCCs as fiduciaries
of the State
2. Standard of Extraordinary Diligence
3. One (1) Year Term; with Holdover
4. Clear accountability of the CEO/Management
to the Governing Board
5. Uniform Compensation System for all GOCCs
6. Power to Restructure the GOCC Sector
8
MANDATES
Slide Title & PROGRAMS
A. Rationalization of the Government
Corporate Sector
B. Compensation and Position Classification
System (CPCS)
C. Performance Evaluation Systems
(Performance Scorecards)
D. Shortlisting of Prospective Appointive
Directors in GOCCs
9
RATIONALIZING
THE GOCC SECTOR
Slide Title
The GCG has the power and function to ascertain
whether a GOCC should be:
(a)Reorganized;
(b)Merged;
(c) Streamlined;
(d)Abolished; or
(e)Privatized
10
RATIONALIZING
THE GOCC SECTOR
Slide Title
(i) Implement the reorganization, merger or
streamlining of the GOCC, unless otherwise
directed by the President;
(ii) Recommend to the President the abolition or
privatization of the GOCC, and upon approval
of the President, implement such abolition or
privatization.
11
RATIONALIZING
THE GOCC SECTOR
Slide Title
On GOCC Sector Rationalization
12
•
Formally dissolved/liquidated 20 GOCCs in 2012
•
Recommended for privatization 2 GOCCs
•
Recommended for dissolution 15 GOCCs
•
25 GOCCs for dissolution by the end of 2013
•
Number of GOCCs reduced from 145 in 2011 to 125 by
the end of 2012 and will further be reduced to 100 by
the end of 2013.
COMPENSATION AND POSITION
Slide
Title
CLASSIFICATION
SYSTEM (CPCS)
•
Shall apply to all officers and employees of
GOCCs whether under the Salary
Standardization Law or exempt therefrom.
•
Any law to the contrary notwithstanding, no
GOCC shall be exempt from the coverage
of the CPCS.
13
COMPENSATION AND POSITION
Slide
Title
CLASSIFICATION
SYSTEM (CPCS)
•
The Charters of each GOCC to the contrary
notwithstanding, the compensation, per diems,
allowances and incentives of the members of
the Board of Directors/Trustees of GOCCs
shall be determined by the GCG.
14
COMPENSATION AND POSITION
Slide
Title
CLASSIFICATION
SYSTEM (CPCS)
On the Development of a Compensation and
Position Classification System (CPCS)
15
•
Development underway with Towers Watson as the
consultant;
•
Objective is to provide a compensation system that is
comparable to private sector that will allow GOCCs to
attract the right talent;
PERFORMANCE
EVALUATION SYSTEM
Slide Title
•
Establish the performance evaluation systems
which shall apply to all GOCCs.
•
Performance Scorecards containing the
following perspectives:
(a) Social Impact
(b) Stakeholders
(c) Finance
(d) Internal Process
(e) Learning & Growth
16
PERFORMANCE
EVALUATION SYSTEM
Slide Title
•
The GCG may recommend to the President,
incentives for certain position titles in
consideration of the good performance of
the GOCC.
•
GCG Memo. Circ. 2013-02
“Performance Evaluation System for the
GOCC Sector”
17
PERFORMANCE
EVALUATION SYSTEM
Slide Title
On Performance Evaluation
• Entails the preparation by each GOCC of a
Performance Scorecard;
• Ensures adherence to mandate, and alignment to
the Philippine Development Plan and the President’s
Social Contract;
• Development of Integrated Corporate Reporting
System (ICRS) for the GOCC Sector underway.
18
SHORTLISTING
Slide Title
•
An Appointive Director shall be appointed by
the President of the Philippines from a
shortlist prepared by the GCG.
•
GCG Memo. Circ. 2012-05
“Fit and Proper Rule for Appointive Directors
and CEOs of GOCCs”
19
Slide
Title DOCUMENTS
ORGANIC
1. Ownership and Operations Manual for
GOCCs
2. Code of Corporate Governance for
GOCCs
3. The Fit and Proper Rule
20
Slide Title DOCUMENTS
ORGANIC
1.
Ownership and Operations Manual for GOCCs
a.
Provides for the Governing Principles and Objectives of the State as an
“Active Owner” of the GOCCs;
b.
Defines the Role and Relationship of the State, its agencies and
instrumentalities, vis-à-vis the GOCCs as “significant tools for national
development”;
c.
Provides for the roles and responsibilities of GOCCs and the Primacy of the
Boards of Directors/Trustees in the governance of the GOCCs;
d.
Provides Guidelines the in the Monitoring and Evaluation of the GOCCs and
their Governing Boards;
e.
Provides for the Policy Framework for Tasking GOCCs to Undertake NonCommercial Activities.
21
Slide Title DOCUMENTS
ORGANIC
2. Code of Corporate Governance for GOCCs
a. The Role and Responsibilities of the Governing Boards, and
the Individual Directors;
b. Disclosure and transparency requirements;
c. Code of Ethics of Directors and Officers;
d. Creation of Board committees and similar oversight bodies;
e. Providing for an Integrated Corporate Reporting System;
and
f.
22
CSR Statement and the Role of Stakeholders.
Slide Title DOCUMENTS
ORGANIC
3. Fit and Proper Rule
a. Primary mechanism through which the Commission
ensures the integrity and competence of Directors/Trustees
of GOCC Boards
b. Codification of tried and tested standards already
implemented by other agencies, with the qualification that
the highest standard shall apply in the event more than one
apply in a given situation
23
COORDINATION
WITH AGENCIES
Slide Title
Office of the Ombudsman
•
All members of the Board, CEO, and officers
of GOCCs shall be qualified by the Fit &
Proper Rule
•
Persons with derogatory records as certified
by the Ombudsman shall be temporarily
disqualified from appointment in a GOCC.
(GCG Memo. Circ. No. 2012-05)
24
COORDINATION
WITH AGENCIES
Slide Title
Commission on Audit (COA)
•
Restitution by a member of the Board or Officer of a
GOCC shall be made upon determination and report of
the COA.
•
The Chairman of the GCG may direct at any time a
special COA audit of any GOCC.
•
Permanent disqualification from appointment in a GOCC
by virtue of a final and executory Notice of Disallowance.
•
Directors and Officers Liability Insurance (DOLI)
(GCG Memo. Circ. No. 2012-10)
25
COORDINATION
WITH AGENCIES
Slide Title
Civil Service Commission (CSC)
•
The CPCS shall consist of classes of
positions grouped into such categories as the
GCG may determine.
•
Involves the allocation of proper position titles
and salary grades.
26
COORDINATION
WITH AGENCIES
Slide Title
Securities and Exchange Commission (SEC)
•
The SEC shall not register the articles of
incorporation and by-laws of a proposed
GOCC or Related Corporation, unless the
application for registration is accompanied by
an endorsement from the GCG stating that the
President has approved the same.
27
Slide Title
GOOD
GOVERNANCE GAINS
1. Dividends remitted significantly higher; Number of
GOCCs remitting also increased
GOCCs
28
2010
2011
2012
2013
25
35
39
38
Slide Title
GOOD
GOVERNANCE GAINS
2. Better delivery of social services
29
a.
Civil Aviation Authority of the Philippines (CAAP) – effectively
addressed aviation industry safety concerns resulting in the lifting of
the EU ban on Philippine carriers on July 2013 (initially for PAL).
b.
National Electrification Administration (NEA) – successfully
implemented the Sitio Electrification Program (at present, already
77% energized).
c.
National Housing Authority (NHA) – delivered the AFP/PNP
Housing on time and within budget.
d.
Philippine Health Insurance Corp. (PHIC) – increased enrollment
rate to 81% of the population from only 62% in 2010; also introduced
more health packages.
Slide Title
GOOD
GOVERNANCE GAINS
3. Improved financials
a.
Metropolitan Waterworks and Sewerage System (MWSS)
(In P Millions)
Net Income (Loss)
Dividends / Other Remittances
b.
2011
2012
(34)
333
1,980
0
150
345
GOCC Sector Net Income
GOCC Sector
Government Financial Institutions
Trade, Area Development and Tourism
Educational and Cultural
Gaming
Energy and Materials
Agriculture, Fisheries and Food
Utilities, Information, Communications
TOTAL (P Billions)
30
2010
2010
125,212
(1,981)
(329)
2,753
8,929
(22,789)
(1,960)
109,834
2011
133,834
1,250
(341)
4,706
7,892
(18,597)
(1,462)
127,282
2012
161,991
7,546
(186)
4,718
35,444
1,917
12,714
224,144
Slide Title
3/F Citibank Center
Paseo de Roxas, Makati City, Philippines 1226
Tel No. (632) 328 2030 to 33
Fax No. (632) 328 2030 loc 204
31

similar documents