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Finance Secretary Cesar Purisima said on Friday the Government-Owned and Controlled Corporations (GOCC) Governance Act of 2011, a bill that will reform the structure and operations of GOCCs, is among the priority bills the Aquino Administration will ask Congress to pass.

In a press briefing in Malacanang, Purisima said the Aquino Administration wants to imitate Singapore's and Malaysia's utilization of their GOCCs in the creation of opportunities for the people.

Senator Franklin Drilon, principal author of Senate Bill No. 2640 or the proposed GOCC Governance Act of 2011, said that there is a need for much-needed reforms in the government corporate sector to make it an effective vehicle in achieving social and economic progress.

“The days when the GOCC boards can act independently of the national government are over. We are confident that once this bill becomes a law, the excesses and abuses we saw in the operation of the GOCCs will be a thing of the past," Drilon said.

The bill proposes the creation of the Governance Commission for GOCCs (GCG) whose main task will be to conduct regular assessments and evaluations of the state firm's performance.

The GCG will also recommend to the President whether a GOCC should be reorganized, merged, streamlined, abolished or privatized.

The GCG will develop a new compensation and position classification system for all officers and employees of the GOCC. It will put a limit on the compensation of directors who had enjoyed excessive bonuses in the past, he added.

The bill makes it clear that directors are not entitled to compensation as directors but may be entitled to reasonable per diems only and emphasizes that directors are not entitled to retirement pay as seen in other GOCCs. - PNA

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