Aquino assures GOCC dividends will be given back to the people
President Benigno S. Aquino III assured on Friday that the P29.25 billion dividends and other remittances turned over by 19 government-owned and controlled corporations (GOCCs) will be given back to the people in the form of social services, including anti-poverty programs.
“As you can see, we are working overtime to bolster our abilities to give back to the Filipino people what they have given us, the President said. “Uulitin ko po: Sila ang boss natin. We will do this, not only because this is what we are mandated to do, but more importantly, because this is the right thing to do.”
In his message at the ceremonial turnover of GOCCs check dividends and remittances at the Rizal Hall of Malacañang, the Chief Executive said dividends and other remittances from GOCCs will allow the government to frontload its expenditures and speed up the implementation of anti-poverty programs, among others.
He reminded the GOCCs that the money belongs to the Filipino people, who he said are the government’s shareholders, and not to the Board of Directors of GOCCs nor to officials of his administration
“The people are our shareholders. It is their interest that we have been tasked to protect. We give them what they own, and we give them the government they rightfully deserve: one that works for the public interest. It is in their trust that we hold our respective offices. Sila ang boss ko. Sila ang boss ninyo. We must always remember that,” he said.
Stressing that good governance is the cornerstone of his administration, the President said he is working on achieving a transparent and accountable government, worthy of the people’s trust thus the need to undertake reforms to enhance the ability of GOCCs to act as stewards of the people’s resources.
These reforms, according to the President, will be implemented with the help of Congress.
He noted that GOCCs have weak board governance, lack of transparency and disclosure practices, poor oversight and multiple and conflicting mandates.
Early on in his administration, the President, having discovered that GOCC board of directors receive exorbitant allowances, issued Executive Order No. 7 directing the rationalization of the compensation and position classification system in GOCCs and Government Financial Institutions.
“GOCCs will no longer be milking cows for politicians and their wards,” he said, adding that competent CEOs and Directors were chosen and they are expected to deliver improved services and finances in the GOCCs.”
The President said GOCC directors will soon be required to sign a performance contract with the Office of the President and their supervising secretaries so there will be basis to remove non-performing board members.
Moreover, the Department of Finance is developing an IT-based reporting system that will require full disclosure of several aspects of GOCC operations so the public will have access to the financial and operational results, renumeration policies, related party transactions, governance structures and policies, among others.
“Make no mistake about it: our positions are not our privilege, but an obligation placed by the people upon us. We promised to do, not only everything we can, but that we do it with honesty and with only the people’s welfare in mind. We pledged to serve them with commitment to professionalism and integrity, and they expect no less than this. We must not fail them,” he said.
A thorough review of GOCCs will be conducted during the first quarter of this year with the Department of Finance convening a strategic planning workshop with key GOCCs to strengthen coordination, and improve the oversight capabilities of the Government, and to draft a roadmap for the entire system of GOCCs.
The President added that in line with government’s zero-based budgeting, the continued operation of a GOCC has to be justified once the GOCC Governance Act of 2011, introduced by Senator Drilon, has been enacted into law.
“The time for patronage is over; now is the age of professionalism, meritocracy, and government institutions that are committed to the people… We will leave a country less poor, easier to invest in, and where people trust their government and all of its entities to work for their interests,” the President added. (PCOO)
Aquino offers P1 million for arrest of bus bombers
President Benigno S. Aquino III has offered P1 million for the arrest of the perpetrators of the Jan. 25 bus blast that killed 5 passengers and wounded 13 others on EDSA in Makati City.
In an ambush interview in Malacañang after the ceremonial turnover of dividends from the Government Owned and Controlled Corporations (GOCC), the President said the reward will be increased if necessary to show government resolve to solve the case.
He said his decision to put up a bounty was made during a meeting with various intelligence services Thursday afternoon. He added that the money will be sourced from the Office of the President contingency and intelligence fund.
During the security cluster meeting, he ordered a review of all plans, travel advisories and potential threats to make sure that every detail of the potential area of concern would not be missed.
The President said the security cluster approved the maximization of security guards, barangay tanod, barangay chairmen and other community-based peace and order personnel in helping and coordinating with the Philippine National Police.
These community-based personnel he said will be tapped to provide a monitoring arm for the government in its fight against terrorists. (PCOO)
GOCCs turn over P29.25 B in remittances
A total of P29.25 billion were remitted by 19 government-owned and controlled corporations (GOCCs) to the national government (NG) on Friday.
The checks, representing prior year dividends, the balance of the 2009 cash dividends following the completion of the Commission on Audit reports, and 2010 partial dividends pursuant to President Benigno S. Aquino III in ceremonies held at the Ceremonial Hall of Malacanang.
The Bangko Sentral ng Pilipinas topped the list with a total of P14.23 billion in remittances representing prior year dividends of P9.31 billion and the balance of 2009 cash dividends of P4.92 billion.
The Land Bank of the Philippines remitted P4 billion representing the balance of 2009 dividends and partial dividends of 2010.
The Development Bank of the Philippines, turned over P2.8 billion while the Power Sector Assets and Liabilities Management Corp. handed P2 billion representing payments for guarantee fees due and other payables.
The Bases Conversion Development Authority turned in P1.8 billion representing the government’s share in the sale of assets, and the Manila International Airport remitted P1.49 billion, representing P1.21 billion dividends and P292 million representing government share.
The other GOCCs that turned over their dividends included the Philippine Fisheries Development Authority (P2 million); National Home Mortgage Finance Corp. (P3 million); National Electrification Administration ((P14.5 million); Cebu Ports Authority (P40 million); National Development Company (P49.4 million); Clark Development Corporation (P100 million); Philippine Leisure and Retirement Authority (P140.6 million); Trade Investment and Development Corporation (P150 million); Philippine Economic Zone Authority (P221 million);
Philippine National Oil Company (P452.9 million); Philippine Deposit Insurance Corporation (P500 million); Philippine Reclamation Authority (P335 million); and Philippine Ports Authority (P650 million).
“This is a good start for the government but I believe this can be further improved,” Finance Secretary Cesar Purisima, in a press briefing in Malacanang, said.
He added that beginning this year, GOCCs will give their performance report to the President every January. This is similar to a stockholders meeting in private corporations.
He added that a good governance agenda for GOCCs will soon be implemented to further improve their performances and be at par with private companies.
He noted that GOCCs hold a total of $141 billion in government assets while equity amount to more than $41 billion or more than P6 trillion.
According to the records from the Commission on Audit (COA), there are 89 existing GOCCS.
Under the Dividends Law of 1994, GOCCs and GFIs are required to remit to the national government half of the income earned in each fiscal year. The remittance should be in the form of cash or in unencumbered or real estate properties with clean titles. (PCOO)
GOCC Governance Act among gov’t priority bills
Finance Secretary Cesar Purisima on Friday said the Government-Owned and Controlled Corporation (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 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.
The GCG will also review the qualifications of individuals appointed as directors or elected as chief executive officer of the GOCC and disqualify those found unfit. (PCOO)
Authorities looking at all angles in Makati bus blast
Intelligence and police authorities showed President Benigno S. Aquino III the sketches of two people who sat on the sixth row where the bomb was placed in the bus that exploded last Tuesday based on artists and computer sketches extracted from witnesses. The two are being hunted as “persons of interest” (or POIs) who could lead authorities to those behind the bombing.
At the same time, they informed the President and the media of the heightened security efforts in Metro Manila and around the country to constantly ensure the safety of the people against terrorists and criminals.
Such efforts include: increased police visibility; deployment of 300 uniformed cops in all buses plying Epifanio de los Santos Avenue and some interior streets; coordinating with security agencies on the “target hardening” and helping them improve their security coverage of the different establishments in the country; organizing a barangay peacekeeping action teams to help the police in maintaining order in their respective areas.
Among those who briefed the palace reporters about security efforts being undertaken were: National Security Adviser Secretary Cesar Garcia; Chief Philippine National Police Gen. Raul Bacalzo and Gen. Nicanor Bartolome chief of the National Capital Regional Police Office (NCRPO).
Bartolome said that although the two “persons of interest” were said to be in row 6 of the bus, where the 81 mm mortar was lodged and detonated via a Nokia cellphone, ”we want to invite them for questioning about their knowledge of the bomb” that killed 5 people and injured more than 10 bus riders.
The physical descriptions of both POIs are: fair-complexioned, around 35 to 37 years old; 50 to 70 kilos and around 5 feet 5 inches to 5 feet 7 inches tall.
They boarded the bus in front of Heritage Hotel in Pasay City bound for Ayala and alighted at Malugay Street before Ayala Avenue.
“We are looking at all possible angles. So far no one has claimed responsibility for the bus bomb explosion unlike previous explosions which were readily claimed by certain groups,” Bacalzo said.
On Friday morning, the PNP-NCRPO reported fielding 372 uniformed policemen as bus marshals who boarded the buses in a terminal and then descended at another point only to board another bus. These marshals will identify themselves to the passengers and the bus driver and conductor before inspecting the belongings of passengers in looking for any suspicious and abandoned items.
Earlier, Interior and Local Government Secretary Jesse Robredo announced a P1-million “bounty” for any person who could lead to the arrest of the perpetrators.
Bacalzo said the PNP earlier received a tip that the feast of the Black Nazarene on Jan. 9 would be “disrupted but we did not take the warning lightly. We augmented our police force during the said feast.”
A similar police augmentation will be done during the celebration of Feb. 3 of the Chinese New year ushering in the year of the metal rabbit. “We will be augmenting the police force to assist the Manila Police District, where most festivities will be held,” Bartolome said. (PCOO)
