DOF Template

Report
Title
SALIENT FEATURES OF THE GOCC
GOVERNANCE ACT (R.A. 10149)
Comm. Rainier B. Butalid
7 February 2013
Slide Title
GOCC
SECTOR PROFILE
Size of Philippine SOE Sector
1. There are currently 158 SOEs
• 84 Chartered
• 74 registered under the SEC
2. 2010 Assets Base: Total Assets have
reached over P4.9 Trillion or US$113.4 Billion
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Slide Title
GOCC
SECTOR PROFILE
Size of Philippine GOCC Sector
SECTOR
Government Financial Institutions
55,465,413,422
Social Services and Housing
1,442,082,924
Land and Water Resources
5,531,355,722
Power
Support Services
39,792,630,457
94,003,678
Commercial, Trade and Tourism
1,151,889,102
Transport, Infra and Communications
9,909,122,409
TOTAL
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2010 TOTAL ASSETS
US$ 113,386,497,714
Slide Title
GOCC
SECTOR PROFILE
Government Financial Support to GOCCs Takes
Three (3) Forms:
B.
SUPPORT
Subsidy
Equity
Net Lending
TOTAL
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2011 AMOUNT
1,248,953,488
67,186,047
419,883,721
US$ 1,736,023,256
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
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COVERAGE
Slide Title
Applicable to all GOCCs, GICPs/GCEs, and
government financial institutions, including their
subsidiaries, but excluding:
(a)
(b)
(c)
(d)
(e)
(f)
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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
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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
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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
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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.
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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.
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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.
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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
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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. 2012-11
“Interim Performance-Based Bonus (PBB)
for GOCCs Covered by R.A. 10149”
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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”
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Slide
Title DOCUMENTS
ORGANIC
1. Ownership and Operations Manual for
GOCCs
2. Code of Corporate Governance for
GOCCs
3. The Fit and Proper Rule
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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.
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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.
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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
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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)
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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)
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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.
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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.
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Slide Title
Rm 479, Mabini Hall,
Malacañang Compound, Manila, Philippines 1005
Tel No. (632) 784 4286 loc 4940/4970
Fax No. (632) 784 4286 loc 4719
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