House OKs on 3rd reading bill creating oversight body for GOCCs

MANILA, Philippines - The House of Representatives approved on third and final reading, before going on a 45-day break last week, an urgent bill creating an oversight body for government-owned and controlled corporations and limiting compensation for executives in state-run firms.

Approved on Wednesday night was House Bill 4067 or the “GOCC Governance Act of 2011” principally authored by Speaker Feliciano Belmonte Jr.

One of the priority bills of President Aquino, it was aimed at strengthening fiscal discipline in state-owned corporations.

“With the passage of this bill, it is anticipated that GOCCs will operate more profitably, effectively and efficiently to ensure the State of financial resources it needs to provide for public services,” Belmonte said.

The measure aims to correct flaws in the management and operations of GOCCs and improve national government oversight over them.

Based on the measure, a Governance Commission for GOCCs (GCG) under the Office of the President will “evaluate the performance and determine the relevance of the GOCC.”

The GCG shall be composed of the secretaries of the Departments of Budget and Management, and Finance, the Director-General of the National Economic and Development Authority and two private sector representatives to be appointed by the President.

The body will also be tasked to recommend to the President the reorganization, merging, streamlining, abolition or privatization of a GOCC following a thorough assessment.

Section 16 of the bill states that members of the board of directors or trustees of all GOCCs “shall not receive any compensation nor be entitled to retirement benefits” other than their “reasonable per diems.”

The measure also states that bonuses of directors and trustees in state-run firms shall not be more than two months’ salary of the chief executive officer of the GOCC and shall be determined based on the individual’s and the GOCC’s performance.

Before adjourning last week, the House also approved other measures, including a bill making it mandatory for applicants of marriage license to undergo seminar on breastfeeding and infant nutrition, and rationalizing the night work prohibition on women workers.

Bagong Henerasyon Party-list Rep. Bernadette Herrera-Dy, one of the principal authors of the breastfeeding bill, said the measure is vital to educating the public, especially mothers, on the importance of breastfeeding.

Other authors of the bill are Pangasinan Rep. Leopoldo Bataoil, Belmonte, House Minority Leader and Albay Rep. Edcel Lagman, Nueva Vizcaya Rep. Carlos Padilla, and Western Samar Rep. Mel Senen Sarmiento.

Under the bill, local government units are directed to conduct information campaign on the benefits of breastfeeding and infant nutrition.

House Bill 4276, meanwhile, lifts the total ban imposed by the Labor Code against assigning women workers to night duty.