Noy gives Roxas Balay men more posts, power

MAR LIKELY TO BE CHAIRMAN, PURISIMA, ABAD TO SERVE IN GCG BODY

With the creation, now by law, of a body that is to oversee policies and supervise the government-controlled corporations, the Balay group of losing vice presidential candidate, former Sen. Manuel “Mar” Roxas, appears to have assumed even more power than before.

The GOCC Governance Act of 2011, authored by Sen. Franklin Drilon, a Liberal Party official, was signed into law by President Aquino yesterday and with the chief executive appointing at least two Cabinet officials to the body, both of whom are identified with Roxas.

Drilon’s bill has caused the creation of the Governance Commission for Government-owned and -controlled corporations (GCG) and mandates the body to be composed of five members —

undersecretary to be appointed by the President—and the Budget and Finance secretaries as ex-officio members.

The body is to develop a new position and classification system that will apply to all officers and employees of GOCCs, whether covered by the Salary Standardization Law or exempt from it.

Automatically, two Cabinet secretaries are positioned to take on the body, and the two Cabinet secretaries, all identified with Roxas, are the ex-officio members of the newly created GCG having been appointed by Aquino.

The GCG is a powerful body that can even fire and hire any and all executives of Government owned and controlled Corporations (GoCC) and the Government Financial Institutions (GFI), virtually giving Budget Secretary Butch Abad and Finance Secretary Cesar Purisma the power to hire and fire officials in these GOCCs and GFI, plus the chairman. The three make up the majority of the commission.

It is being speculated that Roxas, who will be coming in as a presidential adviser with Cabinet rank, will be tapped by Aquino to head the GCG.

The body is attached to the Office of the President.

In a statement, the President said excessive salaries of top GOCC officials have led to the unwieldiness of such institutions.

“Worse, it contributes to a culture of political transactionalism, deeming such positions as mere political currency—to be granted based on expediency and proximity to those in power, rather than on character and competence. This bill effectively paves the way for wider-ranging reforms in our public corporations,” Presidential Spokesman Edwin Lacierda said.

Aquino has taken pride over the swift enactment which he said, reflects the virtue behind his so-called “no loud sirens” policy relevant to his much-vaunted “straight path” administration as he signed the bill into law yesterday.

The law, otherwise known as Republic Act (RA) 10149, aims to promote financial viability and fiscal discipline in GOCCs and GFIs to strengthen the role of the state in its governance and management to make these companies more responsive to the needs of public interest and for other purposes.

“We trust that, with the GOCC Governance Act, the crooked path along with a despondent system of government—the usual partisan ways and shortcut procedures—will be ended. From our no ‘wang-wang’ (loud sirens) to the reforms in our GOCCs and other agencies of government, we are already blocking and moving away from the obstacles in our success,” Aquino said in a speech delivered during the ceremonial signing of RA 10149 held in Malacañang’s President’s Hall, Monday morning.

RA 10149 mandates the creation of the Governance Commission on GOCCs (GCG) which shall be attached to the Office of the President that will serve as the central advisory, monitoring, and oversight body with authority to formulate, implement, and coordinate policies.

In a press statement, Abad said more than 140 GOCCs will be examined by the GCG which has the power to examine the relevance, performance and organizational structures of GOCCs, as well as the qualifications, performance and compensation of their officials and staff.

In accordance with the reforms he has imposed through RA 10149, Aquino said a rigorous process in selecting the executives for the GOCCs and GFIs shall be followed. “We are going to do this process not to promote the ‘padrino’ system. Skills, experience, and dedication to the job shall be the primary standards in our selection process,” claimed the Chief Executive.

“With this law, every appointed chief at the GOCC will have a term not longer than one year. This way, all directors and executive officers will be encouraged to perform well and show their abilities right away. Every GOCC official shall be given equal opportunity to prove themselves,” Aquino said.

Abad said that upon the execution of the law, the President, through the GCG, he will have a free hand to review the current roster of GOCC appointive board members and chief executive officers (CEOs), for retention or replacement with more qualified and reform-oriented persons.

“Any provision of law to the contrary notwithstanding, all incumbent CEOs and appointive members of the Board of GOCCs shall, upon approval of this act, have a term of office until June 30, 2011, unless sooner replaced by the President,” Abad cited.

Abad added that the GCG will be tasked to identify necessary skills and qualifications required for appointive directors and recommend to the President a shortlist of suitable and qualified candidates for such positions.

The GOCC Governance Act will be applicable to all GOCCs, Government Instrumentalities with Corporate Powers, Government Corporate Entities and Government Financial Institutions, including their subsidiaries, but excluding the Bangko Sentral ng Pilipinas, state universities and colleges, cooperatives, local water districts and research institutions.

Aquino also instructed every GOCC and GFI to come up with a website that can be accessed by the public containing their latest financial statements, corporate operating budgets, summary of borrowings, and all the information that will be asked by the GCG.

“In all of these, the GCG shall have the authority to scrutinize the capability being shown by the GOCCs and formulate the foundations that will determine whether a particular corporation has to be overhauled, closed, or privatized,” Aquino said.

The GOCC Governance Act of 2011 was considered a byproduct of Aquino’s two earlier Executive Orders which sought to cap the excessive pays, bonuses, incentives, and benefit packages being received by GOCC and GFI executives during the past administration.

Aquino expressed that he has endeavored to pursue this particular legislation to eliminate so-called “magician” government officials who are doing their own “hocus-pocus” moves in their respective agencies.

“We are also continuing our battle against anomalous contracts and government projects. Even as we make more enemies who hurl criticisms against us, we still choose to examine and investigate controversial contracts like the Piatco, Laguna Lake dredging projects and many others. These are against our aim to push forward programs that will help our countrymen,” Aquino said.

Aquino, moreover, conveyed heartfelt gratitude to the leadership of House Speaker and Quezon City Rep. Feliciano ‘Sonny’ Belmonte and Senate President Juan Ponce Enrile for supporting the GOCC Governance Act of 2011 which was among the 23 legislative bills he would like the 15th Congress to prioritize.

He also made special mention to Senator Franklin Drilon and Cavite Rep. Joseph Emilio Abaya who pushed for the enactment of the bill in the Senate of the Philippines and House of Representatives respectively. All four lawmakers were there yesterday to witness Aquino’s signing of the law. –Aytch S de la Cruz, Daily Tribune