Senate wraps up inquiry into GOCCs, GFIs; prepares remedial legislation

September 14, 2010 10:47 am 

MANILA, Sept. 13 – After conducting six public hearings, the Senate committee on finance has finally wrapped up its investigation and started the process of crafting a remedial legislation that would stop abuses in the government owned and controlled corporations (GOCCs) as well as government financial institutions (GFIs).

During Monday’s last public inquiry, Senate committee on finance chair Senator Franklin Drilon told the media that his panel will propose a Public Enterprise Corporate Governance Act which will review all 157 GOCCs and GFIs.

”We will have a Government Corporate Monitoring and Coordinating Council, which will be tasked to review the mandates of the 157 GOCCs,” Drilon said.

Drilon said the council will be given authority to either dissolve or merge the mandates of the different GOCCs and impose certain standards of performance for the appointment of the board of directors.

”We will also ask the proposed Council with a review of the salary structure and compensation system of the GOCCs. This is our opportunity to make a review of the GOCCs because they constitute a major, major sector of our government,” Drilon said.

During Monday’s hearing, Institute of Corporate Directors chairman Jesus Estanislao revealed that 43 percent of the national debt “is owed to creditors because of the GOCCs.”

”We have asked the DoF to submit to us the total assets of all the GOCCs; what is the total subsidy of the national government through the General Appropriations Act would be given to them; what are their annual revenues and how much of their revenues is remitted to the national government as dividends; and what is their total expenditure, because we are talking of a huge operation,” Drilon said.

Throughout the six public hearings, the Senate discovered that some of the GOCC officials abused their power to provide themselves of excessive and unwarranted salaries like the 25 months bonuses received by the board members of the Metropolitan Waterworks and Sewerage System (MWSS).

”Hopefully, before the month is over or before we adjourn for October 15, we should be able to submit this proposed legislation to the Senate and start the debate. Hopefully, by the first half of next year, we should have a law already in place,” Drilon said. (PNA)

DCT/jfm

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