GCG DIRECTS DUTY FREE TO ADDRESS COA FINDINGS
(Released on 06 July 2018)
The Governance Commission for GOCCs (GCG) has sought the explanation of Duty Free Philippines Corporation (DFPC) on the FY 2017 findings of the Commission on Audit (COA).
The DFPC is likewise directed to address said COA findings under the Performance Evaluation System (PES) of the GCG, which requires GOCCs to present concrete and time-bound action plans for addressing all COA findings, including the recently released Audit Report on misuse of DFPC funds.
Failure to properly address such findings will render the DFPC Board ineligible from receiving the 2017 performance incentives even if DFPC achieves its 2017 performance targets.
The DFPC, and all GOCCs for that matter, must be reminded that Republic Act (R.A.) No. 10149 or the GOCC Governance Act of 2011 has constituted all directors, trustees, and officers as “fiduciaries of the State”, with the “legal obligation and duty to always act in the best interest of the GOCC, with utmost good faith” and who “must exercise extraordinary diligence in the conduct of the business and in dealing with the properties of the GOCC using the utmost diligence of a very cautious person with due regard for all the circumstances.”
GCG’s Oversight Functions
The GCG exercises its oversight functions on GOCCs’ operations primarily through performance monitoring and evaluation. Pursuant to R.A. No. 10149, the GCG is mandated to conduct performance evaluation of GOCCs in relation to their performance scorecards. Meanwhile, audit of GOCC operations in terms of their financial transactions are carried out by the COA. Findings such as those on DFPC are obtained during these audits by COA.
To further complement the audit of COA, the GCG has begun the conduct of quarterly validation of GOCC accomplishments in relation to their performance scorecards to intensify the performance monitoring of GOCCs. This is in addition to the regular annual performance evaluation being executed by the GCG.
While the GCG recognizes the limitations in its mandate, it continues to exercise its power over the GOCCs under its jurisdiction to the fullest extent permitted by its charter.
For media contact:
Veronica Paula D. Castro
(02) 328 – 2030 to 34 local 307
Sec. 19, R.A. No.10149.