Philippine’s
New
Paradigm
Title
on Public Corporate
Governance
15 March 2012
Presentation
Slide Title Outline
A. Brief History of Public Corp. Governance
Reform in the Philippines
B. Organic Documents for the GOCC Sector
•
•
•
Ownership and Operations Manual
Code of Corporate Governance
Fit and Proper Rule
C. Closing
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A.O.
SlideNo.
Title59, s. 1988
a) Laid down the principles and standards to be followed
in the creation, management, administration,
supervision and liquidation of GOCCs;
b) Defined the guidelines in determining the areas or
activities of government in which the corporate form
shall be utilized; and
c) Set down policy measures to improve the
organizational and functional capabilities of government
corporations.
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A.O.
SlideNo.
Title55, 1993
a) Laid down the principles relating to the attainment of
prudential level of government expenditures in the
GOCC Sector
b) Provided as well for the rationalization of the sector and
the move towards privatization
c) Reconstituted the Government Corporate Monitoring
and Coordinating Committee (GCMCC) originally
constituted by President Marcos in 1984
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GCG
Slide Charter
Title Statement
Mission
The GCG is an efficient and effective central advisory, oversight,
and monitoring body with authority to formulate and implement
policies in the active exercise of the State’s ownership rights over
GOCCs, thereby ensuring their financial viability and fiscal
discipline, through adherence to the highest standards of corporate
governance
Vision
By 2020, the GCG shall have transformed the GOCC Sector into a
significant tool of the State in the attainment of inclusive economic
growth and development.
Core Values
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•
•
•
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Integrity
Professionalism
Independence
Love of Country
Problems
Slide Title addressed
a. Weak regulatory framework
b. Lack of a clear entity that exercises the State’s
ownership functions
c. Poor oversight mechanisms
d. Need for institutional rationalization and fiscal
discipline to stop the drain on government finances
e. Absence of a central monitoring and policy
coordinating body
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Thrusts
of the New Paradigm
Slide Title
1. Directors and Officers of GOCCs as
fiduciaries of the State
2. Standard of Extraordinary Diligence
3. One (1) Year Term
4. Clear accountability of the
CEO/Management to the Governing Board
5. Uniform Compensation System for all
GOCCs
6. Power to Restructure the GOCC Sector
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Organic
Documents
Slide Title
A. Ownership and Operations Manual for
GOCCs
B. Code of Corporate Governance for GOCCs
C. The Fit and Proper Rule.
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Organic
Documents
Slide Title
A. Ownership and Operations Manual for GOCCs
a) Provides for the Governing Principles and Objectives of
the State as an “Active Owner” of the GOCCs;
b) Defines the Role and Relationship of the State, its
agencies and instrumentalities, vis-à-vis the GOCCs as
“significant tools for national development”;
c) Provides for the roles and responsibilities of GOCCs and
the Primacy of the Boards of Directors/Trustees in the
governance of the GOCCs;
d) Provides Guidelines the in the Monitoring and Evaluation
of the GOCCs and their Governing Boards;
e) Provides for the Policy Framework for Tasking GOCCs to
Undertake Non-Commercial Activities.
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Organic
Documents
Slide Title
B. Code of Corporate Governance for GOCCs
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a)
The Role and Responsibilities of the Governing
Boards, and the Individual Directors;
b)
Disclosure and transparency requirements;
c)
Code of Ethics of Directors and Officers;
d)
Creation of Board committees and similar
oversight bodies;
e)
Providing for an Integrated Corporate Reporting
System; and
f)
CSR Statement and the Role of Stakeholders.
Organization
Internal
Process
Finance
Stakeholder
Social
Impact
DEVELOPMENT ORIENTATION
Involved in social transformation and
poverty alleviation.
GOOD GOVERNANCE
Transformed GOCC sector leading in
inclusive and sustainable economic
growth
Prepare/submit timely and comprehensive
reports with concrete recommendations.
Build and sustain a record for integrity,
independence and competence
Achieve balance between/among varied
interests of GCG’ stakeholders.
To tap non-traditional funding
sources.
To formulate and support a
strategy-based budgeting system.
Develop & implement all
mandated organic documents.
GOCCs have charter statements,
strategy maps and performance
scorecards.
Develop / implement a
human resource strategy
Develop an integrated corporate
reporting (ICRS), and HR database
systems
Model employer & an
effective corporate
governance regulator
Thank
you
Slide Title
Room 479, Mabini Hall,
Malacañang Compound, Manila, Philippines 1005
Tel No. (632) 784 4286 loc 4940/4970
Fax No. (632) 784 4286 loc 4719
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