THIRTEENTH CONGRESS OF THE REPUBLIC ) 
OF THE PHILIPPINES 
1 
Second Regular Session 
1 
6 MAR -8 P 1  :OO 
RECElVED BY: 
- 
SENATE 
S. No. 
2,222 
Introduced by Senator Richard J. Gordon 
EXPLANATORY NOTE 
Part of the legislative priorities of Congress for fiscal reforms to achieve macro- 
economic stability is to provide a framework for stronger financial oversight of Government- 
Owned or Controlled Corporations, Government Financial Institutions, state-owned 
universities, and other agencies in the public sector. 
Article XII, Section 16 of the Constitution provides that Government-Owned or 
Controlled Corporations may be created or established by special charters in the interest of 
the common good and subject to the test of economic and financial viability. 
Despite the explicit mandate under the Constitution for these corporations to be 
subject to the test of economic and financial viability, Government-Owned or Cmtrolled 
Corporations account for an inordinately high proportion of the country’s external debt, 
public sector deficits, and total credits. 
There is thus a need for Congress to review, monitor,.and evaluate the overall 
performance of these Government-Owned or Controlled Corporations to ascertain whether 
or not these corporations have been fulfilling their mandates under their respective charters 
and are economically and financially viable. Congress must ensure the accountability of 
these entities through effective monitoring and oversight for the benefit of the people. 
fEN 
Senator 


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THIRTEENTH CONGRESS OF THE REPUBLIC ) 
6 MltR -8 P1 :Of! 
OF THE PHILIPPINES 
1 
Second Regular Session 
1 
L 
SENATE 
RECEIVED BY: 
S. No. 
2222 
Introduced by Senator Richard J. Gordon 
AN ACT TO ENSURE THE ACCOUNTABILITY OF GOVERNMENT-OWNED OR 
CONTROLLED CORPORATIONS, GOVERNMENT FINANCIAL INSTITUTIONS, STATE- 
OWNED UNIVERSITIES, AND OTHER SIMILAR AGENCIES IN THE PUBLIC SECTOR 
BY REQUIRING THESE ENTITIES TO BE EVALUATED AND SUBJECTED TO THE 
TEST OF ECONOMIC AND FINANCIAL VIABILITY, CREATING A CONGRESSIONAL 
OVERSIGHT COMMITTEE THEREFOR, AND FOR OTHER PURPOSES 
Be if enacfed by the Senate and the House of Represenfafives of fhe Philippines in 
Congress assembled: 
SECTION 1. Short Title. - This Act shall be known as the “Government-Owned or 
Controlled Corporations (GOCCs) Accountability Act of 2006.” 
Sec. 2. Policy. - It is the policy of the State to create or establish Government- 
Owned or Controlled Corporations only in the interest of the common good and subject to 
the test of economic and financial viability. 
Every Government-Owned or Controlled Corporation must be free from fraud, abuse, 
and wastage, and must be made accountable through effective monitoring and oversight by 
Congress for the benefit of the people. 
Sec. 3. Government-Owned or Controlled Corporation Defined. - For purposes of 
this Act, “Government-Owned or Controlled Corporation” or “GOCC refers to a stock or 
non-stock corporation, performing governmental or proprietary functions directly chartered 
by special law or, if otherwise formed, is owned or controlled by the Government directly or 
indirectly through a parent or subsidiary corporation. It includes Government Financial 
Institutions, state-owned universities, and other similar agencies in the public sector. 
Sec. 4. Submission of Reports. - Every GOCC is required to submit quarterly and 
consolidated annual reports to Congress. 
Each quarterly report, to be submitted within thirty (30) days from the end of each 
calendar quarter, shall be in the form of an executive summary concerning the finances and 
operations of the GOCC and shall indicate any achievement and major projects. It shall 


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include all financial reports and minutes of directors' and shareholders' meetings for the 
subject quarter. 
Each annual report, to be submitted within sixty (60) days from the end of each 
calendar or fiscal year as may be applicable, shall include the following: 
(1) A consolidated executive summary; 
(2) A list of directors and officers; 
(3) A summary of the remuneration paid to directors and officers over the last year; 
(4) The Commission on Audit report for the last year; and 
(5) The audited financial statement for the last year, 
Sec. 5. Mandatory Publication. - Every GOCC is required to disclose and publish in 
at least one (1) newspaper of general circulation within thirty (30) days from the end of each 
calendar or fiscal year as may be applicable the following information: 
(1) Travel and hospitality expenses for directors and officers; and 
(2) Contracts for goods and services over five hundred thousand pesos 
Sec. 6. Creation of a Congressional Oversight Committee for GOCCs. - There is 
hereby created a Congressional Oversight Committee for GOCCs to be composed of six (6) 
members, with three (3) representatives each from the Senate and the House of 
Representatives, and cochaired by the Chairpersons of the Senate Committee on 
Government Corporations and Public Enterprises and the House Committee on 
Government Enterprises and Privatization. 
(PhP500,OOO). 
The Congressional Oversight Committee for GOCCs shall receive and evaluate the 
reports submitted by the GOCCs to Congress. It shall be the principal legislative monitoring 
arm and policy recommending body for all GOCCs. 
Sec. 7. Powers and Funcfions of fhe Congressional Oversight Committee for 
GOCCs. - The Congressional Oversight Committee for GOCCs shall have the following 
powers and functions: 
(1) Prescribe and adopt guidelines that will govern its work; 
(2) Hold hearings, receive testimonies and reports pertinent to its specified concerns; 
(3) Secure from any department, bureau, office, agency, or instrumentality of the 
Government such assistance as may be needed, including technical information 
preparation and production of reports and submission of recommendations or 
plans as it may require; 


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criminal liability. 
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Sec. 9. Submission of Recommendations. - The Congressional Oversight 
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Committee on GOCCs shall submit its recommendations to the Senate and the House of 
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Representatives, copy furnished to the Office of the President, for appropriate action. The 
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recommendations may include the following: 
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(4) Summon by subpoena ad fesfificandum any public or private citizen to testify 
before it, or require by subpoena duces tecum to produce before'it such records, 
reports or other documents as may be necessary in the performance of its 
(5) Use resource persons from the public and private sectors as may be needed; 
(6) Approve the budget for the Congressional Oversight Committee for GOCCs and 
all disbursements therefrom, including compensation of all personnel; 
(7) Organize its staff and hire and appoint such employees and personnel, whether 
temporary or contractual, subject to applicable laws; and 
(8) Exercise all other powers necessary to attain its purposes. 
Sec. 8. Conduct of Review. - The Congressional Oversight Committee for GOCCs 
shall review the quarterly and annual reports submitted by the GOCCs to Congress. 
The Congressional Oversight Committee for GOCCs may require the submission of 
additional pertinent corporate and commercial documents andlor the revelation of all 
relevant data as may be deemed necessary for the conduct of such review. Failure to 
submit any of the required documents or to reveal any required data shall subject the 
directors and officers of the concerned GOCC to appropriate administrative, civil, and 
The Congressional Oversight Committee for GOCCs shall review the reports, 
documents, and data submitted by each GOCC and shall be authorized to conduct 
investigations in furtherance of such review. 
The scope of review shall include the 
(1) Accomplishment of the set goals as may be set forth in their respective charters 
(2) Allocation of resources of each GOCC; 
(3) Instances of duplication of functions; 
(4) Financial and social investment rate of returns and productivity: and 
(5) Interest of the common good. 
(1) Continued existence of and corresponding budgetary allocation for each GOCC; 


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(2) Termination of the existence of or budget allocation for the GOCC by either 
(3) Merger or consolidation of GOCCs performing similar or overlapping functions; 
(4) Restructure of the GOCCs in the Executive branch; 
(5) Adjustment of compensation packages for directors, officers, and employees: 
(6) Filing of appropriate civil, criminal, or administrative charges; 
(7) Contract review or renegotiation as may be appropriate; and 
(8) Other recommendations as may be deemed appropriate. 
Sec. 10. Repealing Clause. - All laws, decrees, orders, rules and regulations or 
other issuances or parts thereof inconsistent with the provisions of this Act are hereby 
repealed or modified accordingly. 
Sec. 11, Appropriation. - In order to carry out this Act, an amount of Twenty Million 
Pesos (PhP20,000,000) is hereby appropriated for the Congressional Oversight Committee 
on GOCCs for its initial operations. 
Sec. 12. Separability Clause. - If any portion or provision of this Act is declared 
unconstitutional, the remainder of this Act or any provisions not affected thereby shall 
remain in force and effect. 
privatization or dissolution; 
Sec. 13. Effectivity. - This Act shall take effect after fifteen (15) days following the 
completion of its publication either in the Official Gazette or in a newspaper of general 
circulation in the Philippines. 
Approved,