P-NOY SIGNS GOVT-OWNED, CONTROLLED CORPORATIONS (GOCC) LAW
[PHOTO - The GOCC Governance Act of 2011 was pushed by Sen. Franklin Drilon, (photo) an ally of Aquino in the Liberal Party].
MANILA, JUNE 6, 2011 (STAR) By Delon Porcalla - President Aquino signed into law yesterday the bill standardizing the salaries and bonuses of executives in government-owned and controlled corporations (GOCCs), Malacañang said over the weekend.
“It (GOCC bill) will not be a policy anymore, but it will already be a matter of law,” said deputy presidential spokesperson Abigail Valte in an interview with government-run radio dzRB.
The GOCC Governance Act of 2011 was pushed by Sen. Franklin Drilon, an ally of Aquino in the Liberal Party.
Aquino earlier issued Executive Order 24 to standardize the pay and other benefits received by board members and trustees of GOCCs and government financial institutions (GFIs). The order was intended to limit the excessive pay and bonuses for board members and trustees of GOCCs and GFIs until a law mandating such is passed.
Malacañang said it consulted with the departments of Finance and Budget and Management before issuing the order.
The order covers board members and directors of GOCCs and GFIs regardless of classification. Their compensation shall be subject to the approval of the President.
It also covers representatives of GOCCs in the boards or private corporations in which the government has investments. The order stipulates that the compensation system for GOCCs and GFIs will be consistent with pay practices in private corporations and would depend on their size, strategic positioning, nature of operations and financial capability.
The maximum amount of performance-based incentives to be granted to members or trustees should depend on the size of the GOCC or GFI and should not exceed 50 percent of a board member’s annual compensation for outstanding performance. Reimbursable expenses cover those incurred in the performance of official functions such as transportation for meetings, travel cost for official trips, and communication and meal expenses for business meetings.
EARLIER NEWS REPORT FROM PNA
Senate ratifies GOCC Governance Act of 2011 31-May-11, 5:09 AM | Philippine News Agency
MANILA, Philippines – The Senate finally ratified on Monday the bicameral conference committee report on the GOCC Governance Act of 2011 aimed at putting an end to the alleged excessive salaries and other abuses in government corporations.
GOCC stands for the Government-Owned and -Controlled Corporations.
With only one negative vote from minority Senator Joker Arroyo, the lawmakers approved the report five days after the congressional bicameral conference committee reconvened to exclude the Manila Economic and Cultural Office (MECO) from the bill’s coverage.
Senator Franklin Drilon, chairman of the congressional oversight committee on public expenditures, said the bicameral panel members have agreed to remove MECO, Manila’s de facto embassy in Taiwan, for fear that its inclusion might affect the country’s bilateral relations with China and Taiwan.
However, Drilon clarified that although MECO has been excluded, he would still monitor the performance of MECO officials with regards to the use of public funds.
Though organized under the corporation code as a private corporation, Drilon said MECO has been collecting public funds in which the excess funds are not turned over to the National Treasury.
Drilon expects President Benigno Aquino III to sign the bill into law before the sine die adjournment of Congress next week.
Under the GOCC Governance Act of 2011, a Governance Commission for GOCCs (GCG) shall be created to oversee GOCCs and government financial institutions (GFI) totalling to 156.
The GCG shall be responsible for the determination of the compensation, per diems, allowances, and bonuses of the members of the board of directors or trustees of the GOCCs.
However, Arroyo opposed the composition of the GCG which he said “betrays the tayo-tayo character.”
”The Commission (GCG) would recommend a short-list of replacements to the President who perforce must limit his choice only to those on the list of the GCG,” he said.
The GCG will be composed of the Budget secretary as chairman, the secretary of Finance, the director-general of NEDA (National Economic and Development Authority) and two others to be chosen by the top three.
Arroyo also said that the bill “is a blanket authority for the mass lay-off of 157 CEOs and 1,570 directors of the 157 GOCCs in the country."
GOCC STANDS FOR GOVERNMENT-OWNED AND -CONTROLLED CORPORATIONS
These are corporations created or established by a special charter or law in the interest of the common good and subject to the test of economic viability.
They are directly under the Government Corporate Monitoring and Coordinating Committee, which has the primary responsibility to monitor, coordinate, and conduct performance evaluation of all Government-owned and Controlled Corporations (GOCCs). What's New ?? More than half of the national government's P5.34 billion financial assistance to GOCCs during the first half of 1996 went to basic services, such as food, electricity, water and transport.
Latest data show the national government extended P2.82 billion worht of cash advances, equity, and subsidy to six GOCCs -- National Food Authority (NFA), National Electrification Administration (NEA), Manila Waterworks and Sewerage System (MWSS), Local Water Utilities Administration (LWUA), Philippine National Railways (PNR), and Light Rail Transit Authority (LRTA).
NFA received P1.12 billion in equity and subsidy, the largest amount of assistance given to GOCC. NEA got P650 million in cash advances and subsidy, MWSS, P298 million; LWUA, P288 million; PNR, P264 million; and LRTA, P203 million.
CENTER FOR INTERNATIONAL TRADE EXPOSITIONS AND MISSIONS (CITEM) - UNDER DTI
COTTAGE INDUSTRY TECHNOLOGY CENTER (CITC) - UNDER DTI
DEVELOPMENT ACADEMY OF THE PHILIPPINES (DAP) - under the Office of the President
EMPLOYEES COMPENSATION COMMISSION (ECC) -under DOLE
FIBER INDUSTRY DEVELOPMENT AUTHORITY (FIDA) - under DA
INTEGRATED BAR OF THE PHILIPPINES (IBP)
INSTRUCTIONAL MATERIALS CORPORATION - DECS
LAGUNA LAKE DEVELOPMENT AUTHORITY (LLDA) - under the DENR
LIGHT RAIL TRANSIT AUTHORITY (LRTA) --under DOTC
HOME INSURANCE AND GUARANTY CORPORATION (HIGC) -under the Office of the President
LOCAL WATER UTILITIES ADMINISTRATION (LWUA) -- the DPWH
LUNG CENTER OF THE PHILIPPINES - under the DOH
NINOY AQUINO INTERNATIONAL AIRPORT AUTHORITY (NAIA) - under the DOTC
MASAGANANG SAKAHAN, INC. (MSI) Main function -- To engage in trading of agricultural products.
METRO MANILA TRANSIT CORPORATION (MMTC) - under the DOTC
NATIONAL DEVELOPMENT COMPANY (NDC) - under the DTI
NATIONAL FOOD AUTHORITY (NFA) -under the DA
NATIONAL HOME MORTGAGE FINANCE CORPORATION (NHMFC) - under the Office of the President
NATIONAL HOUSING AUTHORITY (NHA) - under the Office of the President
NATIONAL IRRIGATION ADMINISTRATION (NIA) - under the DA
NATIONAL KIDNEY INSTITUTE (NKI) - under the DOH
NATIONAL POWER CORPORATION (NPC/NAPOCOR) - under the DOE
NATIONAL RESEARCH COUNCIL OF THE PHILIPPINES (NRCP) - under the DOST
NATIONAL TOBACCO ADMINISTRATION (NTA) - under the DA
PHILIPPINE AEROSPACE DEVELOPMENT CORPORATION (PADC) - entry under the DOTC
PHILIPPINE AMUSEMENT AND GAMING CORPORATION (PAGCOR) - under the Office of the President
PHILIPPINE CHILDREN'S MEDICAL CENTER - under th DOH
PHILIPPINE COCONUT AUTHORITY (PCA/PHILCOA) - under the DA
PHILIPPINE COTTON CORPORATION (PCC) - under the DA
PHILIPPINE CROP INSURANCE CORPORATION (PCIC) - under the DOF
PHILIPPINE DAIRY CORPORATION (PDC) - under the DA
PHILIPPINE EXPORT AND FOREIGN LOAN GUARANTEE CORPORATION (PHILGUARANTEE) - under the DOF
PHILIPPINE FISHERIES DEVELOPMENT AUTHORITY (PFDA) - under the DA
PHILIPPINE HEART CENTER (PHC) - under the DOH
PHILIPPINE INSTITUTE FOR DEVELOPMENT STUDIES (PIDS) - under the NEDA
PHILIPPINE INTERNATIONAL TRADING CORPORATION (PITC) - under the DTI
PHILIPPINE NATIONAL OIL COMPANY (PNOC) - under the DOE
PHILIPPINE NATIONAL RAILWAYS (PNR) - under the DOTC
PHILIPPINE PHOSPHATE FERTILIZER CORPORATION (PHILPHOS) - under the DTI
PHILIPPINE PORTS AUTHORITY (PPA) - under the DOTC
PHILIPPINE TOURISM AUTHORITY (PTA) - under the DOT
PHILIPPINE VETERANS INVESTMENT DEVELOPMENT CORPORATION (PHIVIDEC) Main function -- To harness the talents and assets of the veterans and retired AFP personnel.
QUEDAN AND RURAL CREDIT GUARANTEE CORPORATION - under the DA
SECURITY AND EXCHANGE COMMISSION (SEC) - under the Office of the President
SUGAR REGULATORY ADMINISTRATION (SRA) - under the DA
TECHNOLOGY AND LIVELIHOOD RESOURCE CENTER (TLRC)
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