The GOVERNANCE COMMISSION FOR GOCCS (GCG) was created under Republic Act No. 10149 (RA No. 10149), otherwise known as the “GOCC Governance Act of 2011”, as the central policy-making and regulatory body mandated to safeguard the State’s ownership rights and ensure that the operations of GOCCs are transparent and responsive to the needs of the public. Towards this end, it empowered the Governance Commission to:
- oversee the selection and nomination of directors/trustees and maintain the quality of Board Governance;
- institutionalize transparency, accountability, financial viability and responsiveness in corporate performance by monitoring and evaluating GOCCs’ performance;
- rationalize the Sector through streamlining, reorganization, merger, as well as recommending to the President of the Philippines the privatization or abolition of a GOCC; and
- establish compensation standards to ensure reasonable and competitive remuneration schemes that attract and retain the right talent.
The GCG has three (3) appointive members of the Commission, and two (2) ex-officio members: the DOF Secretary and the DBM Secretary.
Since its first meeting on 20 October 2011, the Governance Commission has introduced major policy reforms such as the Fit and Proper Rule for Appointive Directors and CEOs of GOCCs, the Ownership and Operations Manual Governing the GOCC Sector, and the Code of Corporate Governance for GOCCs.
It established the Performance Evaluation System (PES) that enabled GOCCs to identify their strategies for development and achieving breakthrough results. The GCG also instituted the adoption of the Quality Management System (ISO 9001:2008) in GOCCs to link regular strategy and operations review to process re-engineering.
The Governance Commission also implemented the Performance Evaluation for Directors (PED) in order to monitor and assess the performance of appointive directors in GOCCs through peer review, organizational performance, and Board attendance.
The incumbent appointive members of the Commission are Chairman Samuel G. Dagpin, Jr., Commissioner Michael P. Cloribel, and Commissioner Marites Cruz-Doral. The ex-officio members of the Commission are DOF Secretary Carlos G. Dominguez and DBM Secretary Benjamin E. Diokno.
The Commission is mandated under R.A. No. 10149 to have the following powers and functions:
I. With Respect to GOCCs as Public Institutions:
(a) Properly classify GOCCs into:
- Development/Social Corporations;
- Proprietary Commercial Corporations;
- Government Financial, Investment and Trusts Institutions;
- Corporations with Regulatory Functions; and
- Other as may be determined by GCG;
(b) Adopt within 180 days from its constitution (20 October 2011) an Ownership and Operations Manual and the Government Corporate Standards governing GOCCs, with shall be consistent with the Medium-Term Philippine Development Plan of the NEDA;
(c) Establish the performance evaluation systems including performance scorecards which shall apply to all GOCCs in general and to the various GOCC classifications;
(d) Evaluate the performance and determination of the relevant of GOCCs, to ascertain whether any of them should be reorganized, merged, streamlined, abolished or privatized;
(e) Conduct periodic study, examination, evaluation and assessment of the performance of the GOCCs, receive, and in appropriate cases, require reports on the operations and management of GOCCs including, but not limited to, the management of the assets and finances of the GOCCs;
(f) Coordinate and monitor the operations of GOCCs, ensuring alignment and consistency with the national development policies and programs, and meeting quarterly to review strategy maps and performance scorecards of all GOCCs; review and assess existing performance-related policies, prepare performance reports of the GOCCs for submission to the President;
(h) Review the functions of each of the GOCC and, upon determination that there is a conflict between the regulatory and commercial functions of a GOCC, recommend to the President in consultation with the government agency to which the GOCC is attached, the privatization of the GOCCs commercial operations, or the transfer of the regulatory functions to the appropriate government agency, or such other plan of action to ensure that the commercial functions of the GOCC do not conflict with such regulatory functions;
(i) Provide technical advice and assistance to the government agencies to which the GOCCs are attached in setting performance objectives and targets for the GOCCs and in monitoring GOCCs performance vis-a-vis established objectives and targets; and
(k) Coordinate and monitor the operations of GOCCs, ensuring alignment and consistency with the national development policies and program, and shall meet at least quarterly to:
- Review strategy maps and performance scorecards of all GOCCs;
- Review and assess existing performance-related policies incluidng the compensation/remuneration of Board of Directors/Trustees and Officers and recommend appropriate revisions and actions;
- Prepare performance reports of the GOCCs for submission to the President;
(j) Prepare a semi-annual progress report to be submitted to the President and the Congress, providing therein its performance assessment of the GOCCs and recommend clear and specific actions; and withing one-hundred-twenty (120) days from the close of the year, shall prepare an annual report on the performance of the GOCCs and submit it to the President and the Congress.
II. With Respect to GOCCs Directors and Trustees
(c) In addition to the qualifications required under the individual charter of the GOCCs and in the bylaws of GOCCs without original charters, identify necessary skills and qualifications required for Appointive Directors and recommend to the President a shortlist of suitable and qualified candidates for Appointive Directors;
(d) Without prejudice to the filing of administrative and criminal charges, recommend to the Board of Directors/Trustees of GOCCs the suspension of any member of the Board who participated by commission or omission in the approval of the act giving rise to the violation or noncompliance with the ownership manual for a period depending on the nature and extent of damage caused, during which period the director or trustee shall not be entitled to emolument;
III. With Respect to GOCCs Officers and Employees
(a) Conduct compensation studies, develop and recommend to the President a competitive compensation and remuneration system which shall attract and retain talent, at the same time allowing the GOCC to be financially sound and sustainable;
(b) After conducting a compensation study, develop a Compensation and Position Classification System which shall apply to all officers and employees of the GOCCs whether under the Salary Standardization Law or exempt therefrom and shall consist of classes of positions grouped into such categories as the Commission may determine, subject to the approval of the President.
Sec. 5(b), RA No. 10149.
Sec. 5(c), RA No. 10149.
Sec. 5(f), RA No. 10149.
Sec. 5(a), RA No. 10149.
Sec. 5(g), RA No. 10149.
Sec. 5(j), RA No. 10149.
Sec. 5(l), RA No. 10149.
Sec. 5(i), RA No. 10149.
Sec. 5(j), RA No. 10149.
Sec. 5(k), RA No. 10149.
Sec. 5(d), RA No. 10149.
Sec. 5(e), RA No. 10149.
Sec. 5(g), RA No. 10149.
Sec. 8, RA No. 10149.