Press Release
November 9, 2010


The Senate Finance Committee has approved a measure seeking to rationalize the operations of government-owned or controlled corporations (GOCCs), a move seen to stop the reported abusive practices by the various governing boards.

"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," said Senator Franklin Drilon, author of Senate Bill 2566 or the proposed GOCC Governance Act of 2010, after a hearing on the proposed legislation.

"We are confident that once the bill becomes a law, the abuses that we saw on the part of the GOCCs will no longer be possible," he added.

During a public hearing, Finance Secretary Cesar Purisima, Budget Secretary Florencio "Butch" Abad, Civil Service Commission Chairman Francisco Duque III, Deputy Government Corporate Counsel Elpidio Vega and the Commission on Audit have unanimously endorsed the bill's approval, saying that they consider it as "timely and relevant" given the abuses committed by the directors, trustees and even employees of public enterprises.

As such, the Senate will ask President Benigno C. Aquino III to certify the measure as an urgent administration bill to enable it to be approved swiftly, said Drilon, chairman of the Senate Finance Committee. The Palace certification would pave the way for simultaneous second and third readings on the same day, since the normal procedure would have been a three-day interval in between approvals.

"Once we have finalized the committee report and once we have submitted it for debates to the Senate and after the amendments on the floor, we intend to request the President to certify this as an urgent administration measure in order that its passage can be assured," said Drilon.

The measure, the result of a series of hearings on the unwarranted salaries and perks received by governing boards and employees of state-run enterprises, mandates a new compensation system for directors, trustees and employees of GOCCs. The Governing Council for GOCCs, which will be created under the proposal, will have the delegated powers of Congress to reorganize the various boards and to set compensation for the directors and employees, subject for the President's approval.

Excess benefits under the hands of directors, trustees or employees, meanwhile, will have to be returned to the GOCCs concerned.

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