Senate’s GOCC reform bill draws endorsement from DOF, DBM PDF Print E-mail
Wednesday, 10 November 2010 10:20

A Senate bill which aims to reform the government-owned and controlled corporations (GOCCs) drew support from the Department of Finance, Department of Budget and Management (DBM) and the Civil Service Commission (CSC).

Senator Franklin Drilon, author of the Senate Bill No. 2566 entitled GOCC Governance Act of 2010, acknowledged the supports after Senate committee on finance hearing on Monday.

”They have all favorably endorsed the enactment of the GOCC Governance Act,” Drilon informed the media after the hearing attended by DOF Secretacry Cesar Purisima, DBM Secretary Florencio Abad, CSC Chairman Francisco Duque and Assistant Government Corporation Counsel Elpidio Vega.

Drilon said the bill is the result of the hearings that the finance committee conducted on the GOCCs following reports that some of 157 GOCCs have abused authorities to earn fat bonuses and incentives like the Metropolitan Waterworks and Sewerage System that enjoyed 25 different kind of bonuses each year.

”This is the GOCC reform act which we hope will rationalize the structure, existence and operations of the GOCCs,” Drilon said.

The principal features of the bill is to come up with a Governing Council for GOCCs which will have delegated powers to reorganize the various boards and to set compensation for the board of directors.

”They will be acting by virtue of the delegated powers of Congress. The days when the 157 boards can act independently of the national government is over, once we have this bill passed into law. We are confident that we would be able to have this measure passed in the Senate,” Drilon said.

Drilon said he will discuss with House Speaker Sonny Belmonte for the possibility of having a counterpart bill in the House of Representatives.

”We are confident that with the bill, once it becomes a law, the abuses that we saw on the part of the GOCCs will no longer be possible,” Drilon said.

In his position paper, Purisima considered the bill as “timely and very relevant as it addresses many of the governance challenges” facing the government corporate sector.

”We expect the bill, once enacted into law, to contribute a long way in the better management and monitoring of the government corporate sector, with the GOCCs being able to deliver their particular mandates in more cost efficient and effective manner consistent with national development goals and objectives,” Purisima said.

Abad said the measure establishes a clear policy to pursue much-needed reforms in the GOCCs.

“This bill makes a stand that GOCCs should not be exempted from good governance, especially if their existence has a bearing on the State’s resources and the national wealth,” Abad said.

Drilon said his committee is inclined to include in his proposed measures some amendments submitted during the committee hearing.

”There are a number of amendments submitted and the committee will now go through it and the committee is inclined to accept. We will include some of these amendments in the committee report,” he said.