One of the commendable features of the Duterte administration’s 10-point socioeconomic agenda is its emphasis on continuity of government policies and programs, recognizing what has been beneficial and injecting its own fresh electoral mandate to power the momentum of reform. Note, especially, the declaration to continue and maintain macroeconomic policies, to accelerate infrastructure spending, increase competitiveness by easing doing business, pursuing inclusiveness through various reforms, notably the Conditional Cash -Transfer (CCT) Program.
Not highlighted in the agenda, though, is the continuity that must be given to the reforms initiated under the GOCC Governance Act of 2011 (Republic Act 10149) by the Governance Commission on GOCCs (GCG). But the reforms already introduced in the Government-Owned or-Controlled Corporation (GOCC) sector by the previous administration should be pushed forward as complementary to the 10-point socioeconomic agenda, because the good governance principles and systems already established provide a robust “management infrastructure” that, as the law itself says, promotes “financial stability and fiscal discipline” in GOCCs and “make them more responsive to the needs of public interest.”
And there are 108 GOCCs with total assets of P6.10 trillion and net worth of P2.80 trillion, generating P905 billion in total revenues as of 2014. That’s a lot of financial resources placed under the stewardship of GOCCs. These are owned by the State, and its ownership entitlement must be exercised properly and well by those who represent the “real owners,” which is, well, us, citizens of the Republic. Which leads me to the point of this article. The top management people of GOCCs are the key to the GCG’s vision of transforming the GOCC sector as “a significant tool of the State in the attainment of inclusive growth and development” as the GOCCs fulfill their “active exercise of the State’s ownership rights over GOCCs.” This, certainly, is an integral, even if unstated, part of the 10-point socioeconomic agenda.
So we call the reader’s attention to the requirement that all appointive directors or trustees of GOCCs shall be appointed by the President of the Philippines only from a short list prepared by the GCG. And if the President is not satisfied with the nominees in the short list, he shall ask the GCG to submit additional nominees.
Section 15 of the GOCC Governance Act of 2011 prescribes that “The GCG shall formulate its rules and criteria in the selection and nomination of prospective appointees and shall cause the creation of search committees to achieve the same. All nominees included in the list submitted by the GCG to the President shall meet the fit and proper rule, as defined in this Act and such other qualifications, which the GCG may determine taking into consideration the unique requirements of each GOCC.”
The fit and proper rule is to be determined by the GCG. And “To maintain the quality of management of the GOCCs, the GCG, in coordination with the relevant government agencies shall, subject to the approval of the President, prescribe, pass upon and review the qualifications and disqualifications of individuals appointed as officers, directors and elected CEO of the GOCC and shall disqualify those found unfit.”
Now, that is power! And so we hope that the newly installed members of the GCG diligently exercise their high authority with, as the law prescribes, due regard to the nominee’s “integrity, experience, education, training and competence.” (Section16). The secretary of finance and the secretary of budget and management are ex-officio members of the governance commission. The other members are Mr. Jaime Ma. F. Flores II (Chairman); Mr. Michael P. Cloribel; and Mr. Samuel G. Dagpin Jr.
Let us pray for and encourage them to perform their solemn duties with all serious purpose and professional independence, insulated from the understandable pressures and importuning of political patronage.