SENATE BILL NO. 2566 GOCC GOVERNANCE ACT

This file copy of the Bill was contributed by Atty. Semaj.

Press Release
November 4, 2010
Source: webpage of Philippine Senate

DRILON ASSURES RANK-AND-FILE WILL BENEFIT
FROM PROPOSED LAW RATIONALIZING GOCCs

Rank-and-file employees will be protected in terms of compensation once a measure seeking to rationalize the operations of government-owned or controlled corporations (GOCCs) is passed into law, Senator Franklin Drilon has assured.
Drilon, author of Senate Bill 2566 or the proposed GOCC Governance Act of 2010, said that employees occupying lower ranks will be given higher percentage of salary increases than those in the higher ranks.
"We need to give due consideration to the rank-and-file and put the ratio of their compensation at par with the higher ranks, notwithstanding their respective charters," said Drilon, who chairs the Senate Finance Committee.
Currently, 27 GOCCs have been granted by Congress the authority to set their pay schemes.
The measure, the result of a series of hearings on the reported unwarranted salaries and perks received by governing boards and employees of state firms, mandates a new compensation system for directors, trustees and employees of GOCCs.
Under the measure, reasonable, justifiable and appropriate remunerations schemes will be adopted for the officers and employees of state firms to prevent the granting of unconscionable and excessive remuneration packages.
The proposed Governance Council for GOCCs, which will be created as an advisory, monitoring, recommendatory and policy-enforcing body attached to the Office of the President, will conduct compensation studies and recommend to the President a new salary scheme for GOCCs.

Thanks Atty. Semaj! This is good news for the R&F employees if ever the objective of Senator Drilon on this bill granting higher percentage of salary increases to the lower ranks will reach its fruition.

Madam Sonia, I have that very strong gut-feeling that said bill will become a law 1st quarter of next year.Yesterday, the Senate Finance Panel unanimously endorsed the bill's approval and plans to ask the President to certify the measure as urgent. Hereunder is the whole text of the said press release....
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Press Release
November 9, 2010
SENATE FINANCE PANEL OKAYS BILL OVERHAULING GOCCs, TO ASK PRESIDENT TO CERTIFY MEASURE AS URGENT

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.