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Title. SALIENT FEATURES OF THE GOCC GOVERNANCE ACT (R.A. 10149). Comm. Rainier B. Butalid 26 October 2012. GOCC SECTOR PROFILE. Slide Title. Size of Philippine SOE Sector There are currently 158 SOEs 84 Chartered 74 registered under the SEC

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Title

Title

SALIENT FEATURES OF THE GOCC GOVERNANCE ACT (R.A. 10149)

Comm. Rainier B. Butalid

26 October 2012


Title

GOCC SECTOR PROFILE

Slide Title

  • Size of Philippine SOE Sector

  • There are currently 158 SOEs

    • 84 Chartered

    • 74 registered under the SEC

  • 2010 Assets Base: Total Assets have reached over P4.9 Trillion or US$113.4 Billion


Title

GOCC SECTOR PROFILE

Slide Title

  • Size of Philippine GOCC Sector


Title

GOCC SECTOR PROFILE

Slide Title

  • Government Financial Support to GOCCs Takes Three (3) Forms:


Title

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


Title

COVERAGE

Slide Title

  • Applicable to all GOCCs, GICPs/GCEs, and government financial institutions, including their subsidiaries, but excluding:

    • The BangkoSentralngPilipinas;

    • State Universities and Colleges;

    • Cooperatives;

    • Local Water Districts;

    • Economic Zone Authorities; and

    • Research Institutions.


Title

THRUSTS OF THE NEW PARADIGM

Slide Title

  • Directors and Officers of GOCCs as fiduciaries of the State

  • Standard of Extraordinary Diligence

  • One (1) Year Term; with Holdover

  • Clear accountability of the CEO/Management to the Governing Board

  • Uniform Compensation System for all GOCCs

  • Power to Restructure the GOCC Sector


Title

MANDATES & PROGRAMS

Slide Title

  • Rationalization of the Government Corporate Sector

  • Compensation and Position Classification System (CPCS)

  • Performance Evaluation Systems (Performance Scorecards)

  • Shortlisting of Prospective Appointive Directors in GOCCs


Title

RATIONALIZING THE GOCC SECTOR

Slide Title

  • The GCG has the power and function to ascertain whether a GOCC should be:

    • Reorganized;

    • Merged;

    • Streamlined;

    • Abolished; or

    • Privatized


Title

RATIONALIZING THE GOCC SECTOR

Slide Title

  • Implement the reorganization, merger or streamlining of the GOCC, unless otherwise directed by the President;

  • Recommend to the President the abolition or privatization of the GOCC, and upon approval of the President, implement such abolition or privatization.


Title

COMPENSATION AND POSITION CLASSIFICATION SYSTEM (CPCS)

Slide Title

  • 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.


Title

COMPENSATION AND POSITION CLASSIFICATION SYSTEM (CPCS)

Slide Title

  • 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.


Title

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


Title

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”


Title

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”


Title

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)


Title

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)


Title

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.


Title

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.


Title

ORGANIC DOCUMENTS

Slide Title

  • Ownership and Operations Manual for GOCCs

  • Code of Corporate Governance for GOCCs

  • The Fit and Proper Rule


Title

ORGANIC DOCUMENTS

Slide Title

  • Ownership and Operations Manual for GOCCs

  • Provides for the Governing Principles and Objectives of the State as an “Active Owner” of the GOCCs;

  • Defines the Role and Relationship of the State, its agencies and instrumentalities, vis-à-vis the GOCCs as “significant tools for national development”;

  • Provides for the roles and responsibilities of GOCCs and the Primacy of the Boards of Directors/Trustees in the governance of the GOCCs;

  • Provides Guidelines the in the Monitoring and Evaluation of the GOCCs and their Governing Boards;

  • Provides for the Policy Framework for Tasking GOCCs to Undertake Non-Commercial Activities.


Title

ORGANIC DOCUMENTS

Slide Title

  • Code of Corporate Governance for GOCCs

  • The Role and Responsibilities of the Governing Boards, and the Individual Directors;

  • Disclosure and transparency requirements;

  • Code of Ethics of Directors and Officers;

  • Creation of Board committees and similar oversight bodies;

  • Providing for an Integrated Corporate Reporting System; and

  • CSR Statement and the Role of Stakeholders.


Title

ORGANIC DOCUMENTS

Slide Title

  • Fit and Proper Rule

  • Primary mechanism through which the Commission ensures the integrity and competence of Directors/Trustees of GOCC Boards

  • 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


Title

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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