Drilon seeks to rationalize GOCC’s operation

By Jason de Asis


SENATE OFFICE, Manila, November 2, 2010- Senator Franklin Drilon, author of Senate Bill No. 2566 or the proposed government-owned or controlled corporations (GOCCs) Governance Act of 2010, proposed a legislation which seeks to rationalize its operations that will eliminate political patronage and horse trading in appointing officials in state firms which has been abused for nine (9) years by the Arroyo administration.


The aim of remedial measure is to eliminate abuses in state enterprises and see to it that only fit and proper individuals will be appointed to the governing boards of government-run corporations.


The crucial factors in determining who will sit in the numerous governing boards are integrity, experience, education, training and competence. Drilon, chairman of the Senate Finance Committee who conducted investigation in the excessive bonuses of officials of state firms said that this standard should be properly observed by the President so he will not be accused of political administration.


Drilon said that the proper rule will see to it that only qualified individuals will get involved in state firms, as patronage job is susceptible to widespread inefficiency and corruption, denouncing former President Arroyos politicized and arbitrary appointment and retention of non-performing appointive directors and trustees in state enterprises .


“We need to institute reforms in the government because we want the people to have full confidence with our leaders,” he said.


An appointive director shall be appointed by the President of the Philippines from a shortlist prepared by the Governance Council for GOCCs, an advisory and monitoring body which is also mandated to set new pay schemes for state enterprises under Section 13 of the bill.


Taking into consideration into the requirements set by particular GOCCs it is mandated by the monitoring council under the measure to identify the necessary skills and qualifications required for appointive directors or trustees, adding that no person who is not included in the shortlist prepared by the monitoring body may become an appointive director.


The appointive director term shall be one (1) year subject to reappointment of the President where appointment to any vacancy shall be only for the unexpired term of the predecessor.


Meanwhile, in dealing with property and monies the directors or trustees have the legal obligation and duty to act in the best interest of the GOCC. (Jason de Asis)