(UPDATE) House body approves GOCC bill

Monday, 04 April 2011 10:27

The House of Representatives has approved on 3rd and final reading a bill promoting financial viability and fiscal discipline in government–owned and controlled corporations (GOCCs).

House Bill 4067, principally authored by Speaker Feliciano Belmonte, Jr. (4th District, Quezon City), recognizes the potential of GOCCs as significant tools for economic development, ensuring that their operations are consistent with national development policies and programs.

Belmonte said the bill covers all GOCCs including all government instrumentalities with corporate powers and government corporate entities. Excluded from the bill's coverage are the local water districts and the Bangko Sentral ng Pilipinas, which is a constitutionally mandated independent agency.

Under the bill, the Governance Commission for Government-Owned or Controlled Corporations (GCG), which shall be attached to the office of the President, shall be created to serve as the advisory, monitoring, recommendatory and policy-making body.

The Speaker said the GCG shall have the authority to evaluate the performance and determine the relevance of a GOCC, and recommend to the President the reorganization, merging, streamlining, abolition or privatization of a GOCC.

Under the bill, the GCG shall be covered by a Compensation and Position Classification System to be developed by the GCG. Likewise, there shall be limitations to per diems, allowances and bonuses of the Board of Directors and Trustees of these GOCCs.

The bill also prohibits the Securities and Exchanges Commission (SEC) from registering the articles of incorporation and by-laws of a proposed GOCC or related corporation under the Corporation Code of the Philippines; unless the application for registration is accompanied by an endorsement from the GCG stating that the President has approved the same.

Other authors of HB 4067 are Reps. Joseph Emilio Abaya (1st District, Cavite), Neptali Gonzales II (Lone District, Mandaluyong City), Rufus Rodriguez (2nd District, Cagayan De Oro City), Maximo Rodriguez Jr., (Party List, ABANTE MINDANAO), Susan Yap (2nd District, Tarlac), Romeo Acop (2nd District, Antipolo City), Tomas Apacible (1st District, Batangas), Jeci Lapus (3rd District, Tarlac), Florencio Miraflores (Lone District, Aklan), Marcelino Teodoro (1st District, Marikina City), and Henedina Abad (Lone District, Batanes).

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