GOCC Governance Act of 2011 Ratified by Congress 31-May-11

Senate ratifies GOCC Governance Act of 2011
31-May-11, 5:09 AM | Philippine News Agency

MANILA, Philippines – The Senate finally ratified on Monday the bicameral conference committee report on the GOCC Governance Act of 2011 aimed at putting an end to the alleged excessive salaries and other abuses in government corporations.

GOCC stands for the Government-Owned and -Controlled Corporations.

With only one negative vote from minority Senator Joker Arroyo, the lawmakers approved the report five days after the congressional bicameral conference committee reconvened to exclude the Manila Economic and Cultural Office (MECO) from the bill’s coverage.

Senator Franklin Drilon, chairman of the congressional oversight committee on public expenditures, said the bicameral panel members have agreed to remove MECO, Manila’s de facto embassy in Taiwan, for fear that its inclusion might affect the country’s bilateral relations with China and Taiwan.

However, Drilon clarified that although MECO has been excluded, he would still monitor the performance of MECO officials with regards to the use of public funds.

Though organized under the corporation code as a private corporation, Drilon said MECO has been collecting public funds in which the excess funds are not turned over to the National Treasury.

Drilon expects President Benigno Aquino III to sign the bill into law before the sine die adjournment of Congress next week.

Under the GOCC Governance Act of 2011, a Governance Commission for GOCCs (GCG) shall be created to oversee GOCCs and government financial institutions (GFI) totalling to 156.

The GCG shall be responsible for the determination of the compensation, per diems, allowances, and bonuses of the members of the board of directors or trustees of the GOCCs.

However, Arroyo opposed the composition of the GCG which he said “betrays the tayo-tayo character.”

”The Commission (GCG) would recommend a short-list of replacements to the President who perforce must limit his choice only to those on the list of the GCG,” he said.

The GCG will be composed of the Budget secretary as chairman, the secretary of Finance, the director-general of NEDA (National Economic and Development Authority) and two others to be chosen by the top three.

Arroyo also said that the bill “is a blanket authority for the mass lay-off of 157 CEOs and 1,570 directors of the 157 GOCCs in the country."

House ratifies GOCC bill despite opposition from minority
05/31/2011 | 09:14 PM
GMA News Online

The House of Representatives on Tuesday ratified a bill putting a cap on the salaries and other benefits received by officials of government-owned and -controlled corporations (GOCCs) despite opposition from members of the minority.

A majority of House members approved on Tuesday afternoon the ratification of the GOCC Governance Act of 2011 via a voice vote.

Before the bill was ratified, Minority Leader Albay Rep. Edcel Lagman urged his colleagues to junk the measure due to “constitutional infirmities."

“I would extol the membership of this House to reject the bicameral conference committee for violation of the Constitution and for abdication of the powers of this House," he said in a speech before the vote.

Lagman said the Governance Commission for GOCCs (GCG), the superbody the proposed legislation seeks to create, duplicates the duties of both Congress and the Civil Service Commission.

The lawmaker added that the bill also violates the constitutional mandate for security of tenure of some government employees whose services will be terminated by June 30 once the bill is enacted.

Lagman earlier expressed intention to challenge the bill before the Supreme Court if President Benigno Aquino III signs it into law.

The Senate on Monday ratified the proposed measure, which means that it only needs President Aquino's signature to become a law. —

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It is now a fact that the both houses (upper and lower) have already ratified the GOCC Bill. Any time from now, the President will be affixing his signature (or might have already signed it). Count the 15 day publication and the same will be in full force and effect. Ang tanong na nasa ere, paano na yung sinasabing "interim increase" na ngayon ay wala pang kalinawan? Paging our LBPEA NEB!

Atty. Semaj wrote:

Drilon expects President Benigno Aquino III to sign the bill into law before the sine die adjournment of Congress next week

Per Legislative Calendar, the sine die adjournment will start on June 10 hence we expect the bill will be signed into law by Pres. Aquino on or before June 9 the last session day of Congress. It will become effective after 15 days following its publication in a newspaper of general circulation if it will be published on June 10 it will take effect by June 25.

Latest Update on GOCC Act and Interim Increase:

Heads of GOCCs/GFIs including Mam Pico will be going to Malacanang on Monday-June 6 for the signing by Pres. Aquino III of the GOCC Act of 2011.

The counterproposal of LandBank on interim increase is already with Sec. Ochoa and marathon meetings were held on May 27, 29, 30 and June 1.

Lets hope and pray that the interim increase will be acted upon favorably next week just before the GOCC Act would take effect.

For mam sonia:

Thus this means that there is no more chance that the salary interim increase will be approved? It was said in the UR meeting the salary interim increase proposal will hold still and will not be affected by the Drillon Bill. What's your opinion on this? can we have a copy of the Bill?

Miracle can still happen... Prayers can move mountains..

For jclemente:

There is still a chance for our interim salary increase because as we were made to understand marathon meetings were held to fast track its preparation. Perhaps the TFCC are also aware of the effect of the GOCC Act once it becomes a law on their authority to make recommendations.

Anyway, after the signing by Pres. Noy of the GOCC Act on Monday there is still a 15 day publication required under the law before it becomes effective.

For Uragon:
Your suggestion is really good! We will exhaust all possible means we could think of to have our interim increase approved at the soonest possible time. I already asked help from a fellow LandBanker from Roxas City, Capiz whose husband is a trusted political ally/close friend of Senator Mar Roxas.