Presentation on theme: "SALIENT FEATURES OF THE GOCC GOVERNANCE ACT (R.A )"— Presentation transcript:
1 SALIENT FEATURES OF THE GOCC GOVERNANCE ACT (R.A. 10149) TitleSALIENT FEATURES OF THE GOCC GOVERNANCE ACT (R.A )Comm. Rainier B. Butalid7 February 2013
2 GOCC SECTOR PROFILE Slide Title Size of Philippine SOE Sector There are currently 158 SOEs84 Chartered74 registered under the SEC2010 Assets Base: Total Assets have reached over P4.9 Trillion or US$113.4 Billion
3 GOCC SECTOR PROFILE Slide Title Size of Philippine GOCC Sector SECTOR 2010 TOTAL ASSETSGovernment Financial Institutions55,465,413,422Social Services and Housing1,442,082,924Land and Water Resources5,531,355,722Power39,792,630,457Support Services94,003,678Commercial, Trade and Tourism1,151,889,102Transport, Infra and Communications9,909,122,409TOTALUS$ 113,386,497,714
4 GOCC SECTOR PROFILE Slide Title Government Financial Support to GOCCs Takes Three (3) Forms:SUPPORT2011 AMOUNTSubsidy1,248,953,488Equity67,186,047Net Lending419,883,721TOTALUS$ 1,736,023,256
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 COVERAGESlide TitleApplicable to all GOCCs, GICPs/GCEs, and government financial institutions, including their subsidiaries, but excluding:The Bangko Sentral ng Pilipinas;State Universities and Colleges;Cooperatives;Local Water Districts;Economic Zone Authorities; andResearch Institutions.
7 THRUSTS OF THE NEW PARADIGM Slide TitleDirectors and Officers of GOCCs as fiduciaries of the StateStandard of Extraordinary DiligenceOne (1) Year Term; with HoldoverClear accountability of the CEO/Management to the Governing BoardUniform Compensation System for all GOCCsPower to Restructure the GOCC Sector
8 MANDATES & PROGRAMS Slide Title Rationalization of the Government Corporate SectorCompensation and Position Classification System (CPCS)Performance Evaluation Systems (Performance Scorecards)Shortlisting of Prospective Appointive Directors in GOCCs
9 RATIONALIZING THE GOCC SECTOR Slide TitleThe GCG has the power and function to ascertain whether a GOCC should be:Reorganized;Merged;Streamlined;Abolished; orPrivatized
10 RATIONALIZING THE GOCC SECTOR Slide TitleImplement 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.
11 Slide Title COMPENSATION AND POSITION 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.
12 Slide Title COMPENSATION AND POSITION 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.
13 PERFORMANCE EVALUATION SYSTEM Slide TitleEstablish 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
14 PERFORMANCE EVALUATION SYSTEM Slide TitleThe GCG may recommend to the President, incentives for certain position titles in consideration of the good performance of the GOCC.GCG Memo. Circ“Interim Performance-Based Bonus (PBB) for GOCCs Covered by R.A ”
15 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“Fit and Proper Rule for Appointive Directors and CEOs of GOCCs”
16 ORGANIC DOCUMENTS Slide Title Ownership and Operations Manual for GOCCsCode of Corporate Governance for GOCCsThe Fit and Proper Rule
17 ORGANIC DOCUMENTS Slide Title Ownership and Operations Manual for GOCCsProvides 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.
18 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; andCSR Statement and the Role of Stakeholders.
19 ORGANIC DOCUMENTS Slide Title Fit and Proper Rule Primary mechanism through which the Commission ensures the integrity and competence of Directors/Trustees of GOCC BoardsCodification 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
20 COORDINATION WITH AGENCIES Slide TitleOffice of the OmbudsmanAll members of the Board, CEO, and officers of GOCCs shall be qualified by the Fit & Proper RulePersons with derogatory records as certified by the Ombudsman shall be temporarily disqualified from appointment in a GOCC. (GCG Memo. Circ. No )
21 COORDINATION WITH AGENCIES Slide TitleCommission 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 )
22 COORDINATION WITH AGENCIES Slide TitleCivil 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.
23 COORDINATION WITH AGENCIES Slide TitleSecurities 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.
24 Slide Title Rm 479, Mabini Hall, Malacañang Compound, Manila, Philippines 1005Tel No. (632) loc 4940/4970Fax No. (632) loc 4719