1 
Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Constitution Hills, Quezon City 
NINETEENTHCONGRESS 
Third Regular Session 
House Bill No.  10814 
___________________________________________________________________________ 
Introduced by: REPRESENTATIVE EDWIN L. OLIVAREZ 
AN ACT 
AMENDING REPUBLIC ACT NO. 10149, OTHERWISE KNOWN AS THE 
“GOCC GOVERNANCE ACT OF 2011” 
EXPLANATORY NOTE 
Republic Act (RA) No. 10149 or the GOCC Governance Act of 2011, was 
enacted to promote financial viability and fiscal discipline in government-
owned or -controlled corporations (GOCCs). In line with this mandate, the 
Governance Commission for GOCCs (GCG) was created under RA No. 10149 
to act as the central policy-making and regulatory body tasked to safeguard 
the State’s ownership rights over GOCCs.  
The efforts of the GCG during the first decade of its creation were aimed 
at addressing the inefficiencies, financial wastes, overlapping functions, and 
abuses that marred the GOCC sector. As such, the past years since its 
inception has seen stability in the GOCC Sector. Comparing the dividend 
remittances from 2002-2011 and 2012-2021, the GCG reported a 431% 
increase in the 10-year total GOCC remittances from 68.71 billion pesos to 
364.52 billion pesos in 2021. In 2023 alone, total dividends of 100.74 billion 
pesos were recorded. 
To maximize the potential of GOCCs as tools for economic development, 
the proposed amendments to RA No. 10149 aim to clarify and expand GCG’s 
authority to consolidate, merge, and regularize GOCCs, ensuring that their 
corporate forms are aligned with the public’s needs. The proposed power to 
regularize GOCCs is founded on the economic advantages of converting 
GOCCs that are not financially viable, nonetheless, perform vital public 
functions into national government agencies. 
The measure shall also confer the GCG the ability to investigate and 
enforce compliance, through subpoena and contempt powers, as well as 
oversight on the disposition of non-performing GOCC assets. This will 
strengthen the State’s ownership rights over GOCCs and the accountability 
of their Governing Boards to the State. 
August 27, 2024
12:46 pm


2 
With the GCG's additional powers and responsibilities, the measure 
shall authorize the reorganization of the GCG by creating additional bureaus, 
offices, and positions. It shall also reform the salary framework of the GCG, 
to attract and retain highly qualified professionals with technical expertise in 
corporate governance.  
Finally, the measure shall ensure the continuity of GCG’s initiatives, 
strategies, and operations, by providing fixed terms for GCG’s leadership, and 
shall provide sufficient protection for actions done in good faith, similar to 
other equally important regulatory bodies. 
In light of the foregoing, the immediate passage of the bill is earnestly 
sought. 
EDWIN L. OLIVAREZ 


3 
Republic of the Philippines                                                    
HOUSE OF REPRESENTATIVES 
Constitution Hills, Quezon City 
NINETEENTHCONGRESS 
Third Regular Session 
House Bill No.  10814 
___________________________________________________________________________ 
Introduced by: REPRESENTATIVE EDWIN L. OLIVAREZ 
1 
2 
AN ACT  
AMENDING REPUBLIC ACT NO. 10149, 
OTHERWISE KNOWN AS THE GOCC GOVERNANCE ACT OF 2011 
Be it enacted by the Senate and the House of Representatives of the Philippines 
in Congress assembled: 
SECTION 1. Section 3 of Republic Act No. 10149 is hereby amended with the 
addition of new items (h), (q), and (y) and the amendment of item (o), to read 
as follows, with the other definition of terms consequently re-lettered: 
3 
“SEC. 3. Definition of Terms. – 
4 
x x x 
5 
(H) CONSOLIDATION REFERS TO THE UNION OF TWO OR
6 
MORE EXISTING GOCCS TO FORM A CONSOLIDATED
7 
GOCC. IT IS A COMBINATION OF TWO OR MORE GOCCS
8 
BY 
WHICH 
THEIR 
RIGHTS, 
FRANCHISES, 
AND
9 
PROPERTIES ARE COMBINED AND BECOME A SINGLE,
10 
NEW GOCC.
11 
x x x 
12 
[(o)] 
(P) Government-Owned
or 
-Controlled
Corporation 
13 
(GOCC) refers to any agency organized as a stock or nonstock 
14 
corporation, vested with functions relating to public needs, 
15 
whether governmental or proprietary in nature, and owned by 
16 
the Government of the Republic of the Philippines directly or 
17 
through its instrumentalities either wholly or, where applicable 
18 


4 
as in the case of stock corporations, to the extent of at least a 
1 
majority 
of 
its 
outstanding 
capital 
stock: Provided, 
2 
[however, That for purposes of this Act,] THAT the term 
3 
“GOCC” shall include GICP/GCE and GFI as defined herein.: 
4 
PROVIDED FURTHER, THAT THE DEFINITION HEREIN 
5 
SHALL SUPERSEDE ALL OTHER DEFINITIONS OF GOCC 
6 
UNDER EXISTING LAWS, SUCH AS, BUT NOT LIMITED TO, 
7 
THE DEFINITION OF GOCC PROVIDED UNDER SECTION 
8 
2(B) OF REPUBLIC ACT NO. 7656, AN ACT REQUIRING 
9 
GOVERNMENT-OWNED OR CONTROLLED CORPORATIONS 
10 
TO DECLARE DIVIDENDS UNDER CERTAIN CONDITIONS 
11 
TO THE NATIONAL GOVERNMENT, AND FOR OTHER 
12 
PURPOSES, 
AND SECTION 2, 
ITEM 
13 OF 
THE 
13 
INTRODUCTORY PROVISIONS OF EXECUTIVE ORDER 
14 
NO. 292, INSTITUTING THE “ADMINISTRATIVE CODE OF 
15 
1987”. 
16 
x x x 
17 
(Q) MERGER REFERS TO A UNION WHEREBY ONE GOCC 
18 
ABSORBS ONE OR MORE EXISTING GOCCS, AND THE 
19 
ABSORBING 
GOCC 
CONTINUES 
THE 
COMBINED 
20 
FRANCHISE, MANDATE, AND BUSINESS. 
21 
x x x 
22 
(Y) REGULARIZATION REFERS TO THE CONVERSION OR 
23 
INTEGRATION OF AN EXISTING GOCC TO A REGULAR 
24 
AGENCY 
OF 
THE 
GOVERNMENT, 
BECAUSE 
ITS 
25 
CORPORATE FORM IS NO LONGER RELEVANT FOR ITS 
26 
CURRENT OPERATIONS. THIS SHALL APPLY IN THE 
27 
CASE OF GOCCS WHICH ARE NOT UNDERTAKING 
28 
PROPRIETARY OR BUSINESS-TYPE OPERATIONS BUT 
29 
FUNCTIONS AS REGULATORY, PROVIDES TECHNICAL 
30 


5 
ASSISTANCE, AND CONDUCTS RESEARCH, WHERE 
1 
MINIMAL OR NO INCOME IS DERIVED.” 
2 
x x x 
3 
SEC. 2. Section 5 of Republic Act No. 10149 is hereby amended with the 
4 
addition of new items (m), (n), (o), (p), and (q), and the amendment of items 
5 
(a), (b) and (k), to read as follows: 
6 
“SEC. 5. Creation of the Governance Commission for Government-
7 
Owned or-Controlled Corporations. – x x x 
8 
(a) Evaluate the performance and determine the relevance of the 
9 
GOCC, to ascertain whether such GOCC should be reorganized, 
10 
merged, 
CONSOLIDATED, 
streamlined, 
REGULARIZED, 
11 
abolished, or privatized, in consultation with the department or 
12 
agency to which a GOCC is attached. x x x: 
13 
(1) x x x; 
14 
(6) The functional,S, purpose or nature of operations of any group 
15 
of GOCCs require consolidation under a holding company. 
16 
Upon determination by the GCG that it is to the best interest of the 
17 
State 
that 
a 
GOCC 
should 
be 
reorganized, 
merged, 
18 
CONSOLIDATED, streamlined, REGULARIZED, abolished, or 
19 
privatized, it shall: 
20 
(i)  
Implement the reorganization [merger] or streamlining 
21 
of the GOCC [, unless otherwise directed by the President; 
22 
or]; 
23 
(ii) Recommend to the President the abolition, MERGER, 
24 
CONSOLIDATION, REGULARIZATION, or privatization of 
25 
the GOCC, and upon the approval of the President, 
26 
implement such abolition, MERGER, CONSOLIDATION, 
27 
REGULARIZATION, or privatization, unless the President 
28 
designates another agency to implement such abolition, 
29 


6 
MERGER, 
CONSOLIDATION, 
REGULARIZATION, 
or 
1 
privatization[.]: PROVIDED HOWEVER, THAT IN CASE 
2 
OF ABOLITION OF GOCCS WHERE THERE IS A LACK 
3 
OF QUORUM IN THE BOARD OF DIRECTORS OR 
4 
TRUSTEES, 
IN 
ORDER 
TO 
IMPLEMENT 
THE 
5 
LIQUIDATION OF THE GOCC IN ITS ENTIRETY, THE 
6 
GCG SHALL IMPLEMENT NECESSARY ACTIONS  TO 
7 
COMPLETE 
THE 
ABOLITION, 
INCLUDING 
THE 
8 
APPOINTMENT OF A TRUSTEE, OR ENLISTING THE 
9 
ASSISTANCE OF ANOTHER GOVERNMENT AGENCY: 
10 
PROVIDED 
FURTHER, 
THE 
MERGER 
OR 
11 
CONSOLIDATION MAY COVER GOCCS, WHETHER 
12 
CHARTERED OR NONCHARTERED, AND SHALL BE 
13 
EITHER 
OF 
THE 
FOLLOWING 
RESTRUCTURING 
14 
MODES TO BE DEFINED BY THE GCG: 
15 
(a) DE JURE MERGER REFERS TO THE PROCESS
16 
WHEREBY ONE OR MORE EXISTING GOCC/S 
17 
ARE ABSORBED BY ANOTHER GOCC WHICH 
18 
CONTINUES 
THE 
COMBINED 
FRANCHISE, 
19 
MANDATE, 
AND 
BUSINESSES 
OF 
THE 
20 
ABSORBED GOCCS; AND 
21 
(b) DE FACTO MERGER REFERS TO THE PROCESS
22 
WHEREBY ALL OR SUBSTANTIALLY ALL THE 
23 
ASSETS AND BUSINESS ENTERPRISE OF AN 
24 
EXISTING GOCC ARE TRANSFERRED TO 
25 
ANOTHER GOCC, WHICH CONTINUES THE 
26 
PURPOSE, FUNCTIONS, AND PROGRAMS OF 
27 
THE TRANSFERRING GOCC. 
28 
PROVIDED FINALLY, THAT IN CASE OF ABOLITION, 
29 
WHEN THE INTEREST OF THE GOCC SO REQUIRES, 
30 
THE GCG SHALL HAVE THE EXCLUSIVE POWER TO 
31 


7 
CONDONE, COMPROMISE, OR RELEASE, IN WHOLE OR 
1 
IN PART, ANY SETTLED CLAIM OR LIABILITY OF ANY 
2 
GOCC IN AN AMOUNT NOT EXCEEDING TEN MILLION 
3 
PESOS (P10,000,000.00), SUBJECT TO THE REVIEW 
4 
AND POST-AUDIT BY THE COMMISSION ON AUDIT. IN 
5 
CASE THE CLAIM OR LIABILITY EXCEEDS TEN 
6 
MILLION PESOS (P10,000,000.00), THE GCG SHALL 
7 
SUBMIT THE APPLICATION FOR RELIEF WITH ITS 
8 
RECOMMENDATIONS, 
TO 
THE 
COMMISSION 
ON 
9 
AUDIT. 
10 
(III) DESIGN, PLAN, AND IMPLEMENT A SEPARATION 
11 
INCENTIVE PAY (“SIP”) AND EARLY RETIREMENT 
12 
INCENTIVE 
PAY 
(“ERIP”), 
IF 
NECESSARY, 
FOR 
13 
AFFECTED EMPLOYEES AND OFFICERS OF A GOCC, 
14 
WHICH IS EITHER REORGANIZED, STREAMLINED, 
15 
MERGED, 
CONSOLIDATED, 
REGULARIZED, 
16 
ABOLISHED, OR PRIVATIZED. 
17 
x x x 
18 
(b) Classify GOCCs [into: (1) Developmental/Social Corporations; 
19 
(2) 
Proprietary 
Commercial 
Corporations; 
(3) 
Government 
20 
Financial, Investment and Trust Institutions; (4) Corporations with 
21 
Regulatory Functions; and (5) Others as may be classified by the 
22 
GCG, without prejudice to further sub classifications in each 
23 
category and/or any other classification] based on parameters as 
24 
it may find relevant or material [such as, but not limited to,] 
25 
INCLUDING industry type. CLASSIFICATION HEREIN, SHALL 
26 
INCLUDE THE DETERMINATION OF WHETHER OR NOT 
27 
EXISTING GOCCS ARE EXCLUDED FROM THE COVERAGE 
28 
OF R.A. NO. 10149, UPON EVALUATION OF THE ENTITIES’ 
29 
CHARTER, 
MANDATE, 
OR 
PRIMARY 
PURPOSES, 
AS 
30 
APPLICABLE. THIS SHALL INCLUDE THE DETERMINATION 
31 


8 
OF 
WHETHER 
OR 
NOT 
EXISTING 
ENTITIES 
ARE 
1 
CONSIDERED GOCCS, WITHIN THE COVERAGE OF THIS 
2 
ACT. UPON DETERMINATION, THE GCG SHALL PROCEED TO 
3 
ASCERTAIN WHETHER SUCH ENTITIES ARE WITHIN THE 
4 
REGULATORY JURISDICTION OF THE GCG. The classification 
5 
shall guide the GCG in exercising its powers and functions as 
6 
provided herein; 
7 
x x x 
8 
(k) Prepare [a semi-annual progress report to be submitted to the 
9 
President and the Congress. In its report, the GCG will provide its 
10 
performance assessment of the GOCCs and recommend clear and 
11 
specific actions. Within one hundred twenty (120) days from the 
12 
close of the year, the GCG shall prepare] an annual report on the 
13 
performance of the GOCCs and RECOMMEND CLEAR AND 
14 
SPECIFIC ACTIONS, AND submit it to the President and the 
15 
Congress; [and] 
16 
x x x 
17 
(M) ISSUE SUBPOENA DUCES TECUM AND ORDER THE 
18 
EXAMINATION OF ALL DOCUMENTS, PAPERS, FILES AND 
19 
RECORDS, TAX RETURNS, AND BOOKS OF ACCOUNTS OF 
20 
ANY GOCC OR PERSON WHO MAY HAVE CUSTODY OF THE 
21 
SAME, AS MAY BE NECESSARY FOR THE EVALUATION, 
22 
INVESTIGATION, 
OR 
PROPER 
MONITORING 
OF 
THE 
23 
OPERATIONS AND PERFORMANCE OF THE SUBJECT GOCC, 
24 
AS DETERMINED BY GCG. 
25 
TO ISSUE SUBPOENA TO SUMMON AND COMPEL WITNESSES 
26 
TO APPEAR AND TESTIFY UNDER OATH BEFORE THE 
27 
COMMISSION. 
28 
(N) 
CITE 
ANY 
PERSON 
FOR 
CONTEMPT 
OF 
THE 
29 
COMMISSION, 
BOTH 
DIRECT 
AND 
INDIRECT, 
IN 
30 


9 
ACCORDANCE WITH THE PERTINENT PROVISIONS OF, AND 
1 
PENALTIES PRESCRIBED, BY THE RULES OF COURT, FOR 
2 
VIOLATION 
OF 
SECTION 
5(M) 
OF 
THIS 
ACT, 
OR 
3 
NONCOMPLIANCE WITH ANY LAWFUL ORDER ISSUED BY 
4 
THE COMMISSION. 
5 
(O) INVESTIGATE ANY MALFEASANCE, MISFEASANCE, OR 
6 
NONFEASANCE IN OFFICE ALLEGEDLY COMMITTED BY THE 
7 
MEMBERS OF THE GOVERNING BOARD OF THE GOCC, AND 
8 
REFER THE SAME TO THE PROPER GOVERNMENT OFFICE 
9 
FOR APPROPRIATE ACTION; 
10 
(P) 
AFTER 
PRELIMINARY 
INQUIRY, 
REFER 
ANY 
11 
MALFEASANCE, 
MISFEASANCE, 
OR 
NONFEASANCE 
12 
ALLEGEDLY COMMITTED BY THE SENIOR OFFICERS OF 
13 
THE GOCC TO THE PROPER BODY FOR APPROPRIATE 
14 
ACTION; AND 
15 
(Q) DIRECT GOCCS AND ITS OFFICERS TO REGULARLY 
16 
SUBMIT TO THE COMMISSION AN UPDATED INVENTORY OF 
17 
ITS REAL PROPERTIES, AS WELL AS SHAREHOLDINGS IN 
18 
PRIVATE OR OTHER GOVERNMENT CORPORATIONS. THE 
19 
DISPOSITION OF A GOCC’S REAL PROPERTY SHALL 
20 
REQUIRE THE PRIOR APPROVAL OF THE COMMISSION 
21 
ACCORDING 
TO 
STANDARDS 
SET 
FORTH 
IN 
THE 
22 
IMPLEMENTING RULES ISSUED BY THE COMMISSION.”   
23 
In the performance of its functions under subsections (a), (c), (e), (f), 
24 
(g), (h) and (1L) herein xxx.” 
25 
SEC. 3. A new Section denominated as Section 5.A is hereby inserted to read 
26 
as follows: 
27 
“SEC. 5.A ORGANIZATIONAL STRUCTURE OF THE GCG - 
28 
THE GCG SHALL BE COMPOSED OF NINE (9) BUREAUS, 
29 
EACH OF WHICH SHALL BE HEADED BY A DIRECTOR AND 
30 


10 
ASSISTED BY AN ASSISTANT DIRECTOR. THESE BUREAUS 
1 
ARE, THE FOLLOWING:  
2 
A. THE CORPORATE STANDARDS BUREAU
3 
(1. BANKING AND FINANCIAL INSTITUTIONS, 2. 
4 
SOCIAL 
SECURITY 
AND 
FINANCIAL 
5 
INSTITUTONS, 
AND 
3.
TRADE
AND 
6 
MANUFACTURING INDUSTRY); 
7 
B. THE CORPORATE GOVERNANCE A
8 
(1. EDUCATION, SOCIO-CIVIC AND CULTURE, 2. 
9 
AGRICULTURE, 
AND 
3. 
COMMUNICATIONS, 
10 
UTILITIES, 
TRANSPORTATION, 
AND 
11 
INFRASTRUCTURE);  
12 
C. THE CORPORATE GOVERNANCE B
13 
(1. ENERGY AND MATERIALS, 2. ; 
14 
D. THE CORPORATE GOVERNANCE C;
15 
E. THE LEGAL AFFAIRS BUREAU;
16 
F. THE ADMINISTRATIVE AND FINANCE BUREAU;
17 
G. THE DISPOSITION AND ASSET MANAGEMENT
18 
       BUREAU; 
19 
H. THE STRATEGY AND MANAGEMENT BUREAU;
20 
AND 
21 
I. THE INFORMATION AND COMMUNICATIONS
22 
       TECHNOLOGY BUREAU.” 
23 
SEC. 4. Section 6 of Republic Act No. 10149 is hereby amended to read as 
24 
follows:  
25 
“SEC. 6. Composition of the GCG.—The [GCG] COMMISSION 
26 
shall be composed of five (5) members. The [Chairman] 
27 
CHAIRPERSON with the rank of Cabinet Secretary and two (2) 
28 
members with the rank of Undersecretary shall be appointed by 
29 
the President. The Secretaries of the Department of Budget and 
30 
Management and the Department of Finance shall sit as ex 
31 
officio members. 
32 


11 
THE CHAIRPERSON AND THE COMMISSIONERS SHALL BE 
1 
CITIZENS AND RESIDENTS OF THE PHILIPPINES, OF GOOD 
2 
MORAL CHARACTER, OF RECOGNIZED PROBITY AND 
3 
INDEPENDENCE, 
AND 
MUST 
HAVE 
DISTINGUISHED 
4 
THEMSELVES PROFESSIONALLY IN PUBLIC, CIVIC, OR 
5 
ACADEMIC SERVICE IN ANY OF THE FOLLOWING FIELDS: 
6 
LAW, PUBLIC ADMINISTRATION, ACCOUNTING, FINANCE, 
7 
MANAGEMENT, OR ECONOMICS. THEY MUST HAVE BEEN IN 
8 
THE PRACTICE OF THEIR PROFESSIONS FOR AT LEAST TEN 
9 
(10) YEARS.  
10 
THE TERM OF OFFICE OF THE CHAIRPERSON AND THE 
11 
COMMISSIONERS SHALL BE SEVEN (7) YEARS WITHOUT 
12 
REAPPOINTMENT. OF THE FIRST SET OF APPOINTEES, THE 
13 
CHAIRPERSON SHALL HOLD OFFICE FOR SEVEN (7) YEARS 
14 
AND OF THE FIRST TWO (2) COMMISSIONERS, ONE (1) 
15 
SHALL HOLD OFFICE FOR A TERM OF FIVE (5) YEARS AND 
16 
THE OTHER FOR A TERM OF THREE (3) YEARS. IN CASE A 
17 
VACANCY OCCURS BEFORE THE EXPIRATION OF THE 
18 
TERM OF OFFICE, THE APPOINTMENT TO THE VACANCY 
19 
SHALL ONLY BE FOR THE UNEXPIRED TERM OF THE 
20 
PREDECESSOR. 
21 
THE CHAIRPERSON AND THE COMMISSIONERS SHALL 
22 
HAVE SECURITY OF TENURE AND SHALL NOT BE 
23 
SUSPENDED OR REMOVED FROM OFFICE EXCEPT FOR 
24 
JUST CAUSE AS PROVIDED BY LAW.” 
25 
SEC. 5. A new subsection to Section 6, denominated as Section 6.1, is hereby 
26 
inserted to read as follows:  
27 
“SEC. 6.1 EXECUTIVE DIRECTOR OF THE COMMISSION - AN 
28 
EXECUTIVE DIRECTOR, WITH A RANK EQUIVALENT TO AN 
29 
ASSISTANT SECRETARY, SHALL BE APPOINTED BY THE 
30 
PRESIDENT OF THE PHILIPPINES UPON RECOMMENDATION 
31 


12 
BY THE CHAIRPERSON: PROVIDED, THAT NO PERSON 
1 
SHALL BE APPOINTED AS EXECUTIVE DIRECTOR UNLESS A 
2 
HOLDER OF A DEGREE IN ANY OF THE FOLLOWING FIELDS: 
3 
ECONOMICS, BUSINESS, PUBLIC ADMINISTRATION, LAW, 
4 
MANAGEMENT OR THEIR EQUIVALENT AND HAS AT LEAST 
5 
TEN (10) YEARS RELEVANT EXPERIENCE IN CORPORATE 
6 
GOVERNANCE: PROVIDED, FURTHER, THAT PRIOR TO 
7 
APPOINTMENT, THE CANDIDATE HAS THE REQUISITE 
8 
ELIGIBILITIES FOR THIRD LEVEL CAREER SERVICE 
9 
POSITION, PURSUANT TO THE CAREER EXECUTIVE RANK 
10 
SYSTEM1. 
11 
THE EXECUTIVE DIRECTOR SHALL ASSIST THE COMMISSION IN 
12 
CARRYING OUT THE FUNCTIONS OF THE GCG AND SHALL HAVE 
13 
THE FOLLOWING DUTIES AND FUNCTIONS: 
14 
A. TO IMPLEMENT POLICIES, STANDARDS, RULES, AND 
15 
REGULATIONS PROMULGATED BY THE COMMISSION; 
16 
B. TO EXERCISE GENERAL SUPERVISION OVER THE 
17 
DAY-TO-DAY OPERATIONS OF THE GCG, UNDER THE 
18 
DIRECTION OF THE CHAIRPERSON; 
19 
C. TO REPRESENT THE GCG IN OFFICIAL FUNCTIONS 
20 
WHICH 
THE 
CHAIRPERSON 
AND 
THE 
OTHER 
21 
COMMISSIONERS MAY NOT BE ABLE TO ATTEND; AND 
22 
D. TO EXERCISE OTHER DUTIES AND FUNCTIONS AS 
23 
MAY BE DELEGATED BY THE CHAIRPERSON AND THE 
24 
COMMISSIONERS.” 
25 
SEC. 6. A new Section denominated as Section 6.A is hereby inserted to read 
26 
as follows: 
27 
“SEC. 6.A. IMMUNITY FROM SUIT. – THE CHAIRPERSON, 
28 
THE COMMISSIONERS, OFFICERS, AND EMPLOYEES OF 
29 
 
1 Section 47, Chapter 10, Book IV, Executive Order No. 292. 


13 
THE COMMISSION SHALL NOT BE SUBJECT TO ANY 
1 
ACTION, CLAIM, OR DEMAND, IN CONNECTION WITH ANY 
2 
ACT DONE OR OMITTED IN THE PERFORMANCE OF DUTIES 
3 
AND EXERCISE OF POWERS, EXCEPT FOR ACTIONS AND 
4 
OMISSIONS DONE IN EVIDENT BAD FAITH OR GROSS 
5 
NEGLIGENCE. “ 
6 
SEC. 7. A new Section denominated as Section 6.B is hereby inserted to read 
7 
as follows: 
8 
“SEC. 6.B. INDEMNITY. – UNLESS THE ACTIONS OF THE 
9 
COMMISSION OR ITS CHAIRPERSON, OR ANY OF ITS 
10 
COMMISSIONERS, OFFICERS, OR EMPLOYEES SHALL  BE 
11 
FOUND TO BE IN WILLFUL VIOLATION OF THIS ACT, 
12 
PERFORMED WITH EVIDENT BAD FAITH OR GROSS 
13 
NEGLIGENCE, 
THE 
COMMISSION, 
ITS 
CHAIRPERSON, 
14 
APPOINTIVE 
COMMISSIONERS, 
OFFICERS, 
AND 
15 
EMPLOYEES SHALL BE HELD FREE AND HARMLESS TO THE 
16 
FULLEST EXTENT PERMITTED BY LAW, FROM ANY 
17 
LIABILITY, 
AND 
SHALL 
BE 
INDEMNIFIED 
FOR 
ALL 
18 
LIABILITIES, LOSSES, CLAIMS, DEMANDS, DAMAGES, 
19 
DEFICIENCIES, COSTS, AND EXPENSES OF WHATSOEVER 
20 
KIND AND NATURE THAT MAY ARISE, IN CONNECTION WITH 
21 
THE 
EXERCISE 
OF 
THEIR 
POWERS 
AND 
IN 
THE 
22 
PERFORMANCE OF THEIR DUTIES AND FUNCTIONS. 
23 
THE COMMISSION SHALL UNDERWRITE OR ADVANCE 
24 
LITIGATION COSTS AND EXPENSES, INCLUDING LEGAL 
25 
FEES AND OTHER EXPENSES OF EXTERNAL COUNSEL, OR 
26 
PROVIDE LEGAL ASSISTANCE TO ITS CHAIRPERSON, 
27 
COMMISSIONERS, 
OFFICERS, 
AND 
EMPLOYEES 
IN 
28 
CONNECTION 
WITH 
ANY 
CIVIL, 
CRIMINAL, 
29 
ADMINISTRATIVE 
OR 
ANY 
OTHER 
ACTION 
OR 
30 
PROCEEDING, TO WHICH THEY ARE MADE A PARTY BY 
31 


14 
REASON OF, OR IN CONNECTION WITH, THE EXERCISE OF 
1 
THEIR AUTHORITY OR THE PERFORMANCE OF THEIR 
2 
DUTIES 
AND 
FUNCTIONS 
UNDER 
THIS 
3 
ACT: PROVIDED, THAT SUCH LEGAL PROTECTION SHALL 
4 
NOT APPLY TO ANY CIVIL, CRIMINAL, ADMINISTRATIVE, OR 
5 
ANY ACTION OR PROCEEDING THAT MAY BE INITIATED BY 
6 
THE 
COMMISSION, 
AGAINST 
SUCH 
CHAIRPERSON, 
7 
COMMISSIONERS, OFFICERS, AND EMPLOYEES: PROVIDED 
8 
FURTHER, THAT THE CHAIRPERSON, COMMISSIONERS, 
9 
OFFICERS, AND EMPLOYEES WHO SHALL RESIGN, RETIRE, 
10 
TRANSFER TO ANOTHER AGENCY OR BE SEPARATED FROM 
11 
THE SERVICE, SHALL CONTINUE TO BE PROVIDED WITH 
12 
SUCH LEGAL PROTECTION IN CONNECTION WITH ANY ACT 
13 
DONE OR OMITTED TO BE DONE BY THEM IN GOOD FAITH 
14 
DURING THEIR TENURE OR EMPLOYMENT WITH THE 
15 
COMMISSION: PROVIDED, FINALLY, THAT IN THE EVENT 
16 
OF A SETTLEMENT OR COMPROMISE, INDEMNIFICATION 
17 
SHALL BE PROVIDED ONLY IN CONNECTION WITH SUCH 
18 
MATTERS COVERED BY THE SETTLEMENT AS TO WHICH 
19 
THE COMMISSION IS ADVISED BY COUNSEL THAT THE 
20 
PERSONS TO BE INDEMNIFIED DID NOT COMMIT ANY 
21 
NEGLIGENCE OR MISCONDUCT. 
22 
THE COSTS AND EXPENSES INCURRED IN DEFENDING THE 
23 
AFOREMENTIONED ACTION, SUIT, OR PROCEEDING MAY 
24 
BE PAID BY THE COMMISSION IN ADVANCE OF THE FINAL 
25 
DISPOSITION OF SUCH ACTION, SUIT, OR PROCEEDING 
26 
UPON RECEIPT OF AN UNDERTAKING BY, OR ON BEHALF 
27 
OF THE CHAIRPERSON, COMMISSIONER, OFFICER, AND 
28 
EMPLOYEE TO REPAY THE AMOUNT ADVANCED SHOULD IT 
29 
ULTIMATELY BE DETERMINED BY THE COMMISSION THAT 
30 
ONE IS NOT ENTITLED TO BE INDEMNIFIED AS PROVIDED 
31 
IN THIS SECTION.” 
32 


15 
SEC. 8. Section 7 of Republic Act No. 10149 is hereby amended to read as 
1 
follows:  
2 
“SEC. 7. Powers and Functions of the [Chairman] CHAIRPERSON. 
3 
— The [management of the GCG shall be vested in the Chairman 
4 
who] CHAIRPERSON shall have the following powers and duties: 
5 
(a) Preside over the meetings of the GCG; 
6 
(b) Direct and manage the day-to-day affairs and business of the 
7 
GCG; 
8 
(c) DETERMINE [With the approval of the GCG, determine] the 
9 
staffing pattern and the number of personnel of the GCG and 
10 
define their duties and responsibilities; 
11 
(d) APPOINT, [With the approval of the GCG, to appoint,] remove, 
12 
suspend, or otherwise discipline for cause, any DIRECTOR, 
13 
OFFICER, OR employee of the GCG; and 
14 
[(e)] Perform such other duties as may be delegated or assigned to 
15 
him by the GCG from time to time. 
16 
SEC. 9. Section 17 of Republic Act No. 10149 is hereby amended to read as 
17 
follows: 
18 
“SEC. 17. Term of Office. – Any provision in the charters of each 
19 
GOCC to the contrary notwithstanding, the term of office of each 
20 
Appointive Director shall be for [one (1)] TWO (2) years, unless 
21 
sooner removed for cause: Provided, however, That the Appointive 
22 
Director shall continue to hold office until the successor is 
23 
appointed. An Appointive Director may be nominated by the GCG 
24 
for reappointment by the President only if one obtains a 
25 
performance score of above average or its equivalent or higher in 
26 
the immediately preceding year of tenure as Appointive Director 
27 
based on the performance criteria for Appointive Directors for the 
28 
GOCC.” xxx   
29 


16 
SEC. 10. Section 23 of Republic Act No. 10149 is hereby amended to read as 
1 
follows:  
2 
“SEC. 23. Limits to Compensation, per Diems, Allowances, and 
3 
Incentives. – The charters of each of the GOCCs to the contrary 
4 
notwithstanding, the compensation, per diems, allowances, and 
5 
incentives of the members of the Board of Directors/Trustees of the 
6 
GOCCs shall be determined by the GCG [using as a reference, 
7 
among others, Executive Order No. 24 dated February 10, 2011]: 
8 
Provided, however, That Directors/Trustees shall not be entitled to 
9 
retirement 
benefits 
as 
such 
directors/trustees. 
SUCH 
10 
COMPENSATION, 
PER 
DIEMS, 
ALLOWANCES, 
AND 
11 
INCENTIVES 
MUST 
HAVE 
THE 
FOLLOWING 
12 
CHARACTERISTICS: 
13 
1. JUST AND EQUITABLE IN ACCORDANCE WITH THE 
14 
PRINCIPLE OF EQUAL PAY FOR WORK OF EQUAL 
15 
VALUE; 
16 
2. GENERALLY 
COMPARABLE 
WITH 
THE 
PRIVATE 
17 
SECTOR DOING COMPARABLE WORK IN ORDER TO 
18 
ATTRACT, RETAIN, AND MOTIVATE A CORPS OF 
19 
COMPETENT 
MEMBERS 
OF 
THE 
BOARD 
OF 
20 
DIRECTORS OR TRUSTEES; 
21 
3. PERFORMANCE-BASED WITH DUE CONSIDERATION 
22 
TO 
INDIVIDUAL 
AND 
ORGANIZATIONAL, 
23 
DEVELOPMENTAL, 
AND 
REGULATORY 
24 
PERFORMANCE, WHERE APPLICABLE; AND 
25 
4. FAIR, REASONABLE, AND IN CONSIDERATION OF 
26 
FISCAL REALITIES, SUCH AS THE AVAILABILITY OF 
27 
FUNDS AND THE FINANCIAL CAPABILITY OF THE 
28 
ORGANIZATION.” 
29 


17 
SEC. 11. A new Section denominated as Section 32 is hereby inserted to read 
1 
as follows, and the subsequent sections shall be consequently renumbered: 
2 
“SEC. 32. PENALTIES. — ANY PERSON WHO WILLFULLY 
3 
OBSTRUCTS OR HINDERS THE PROPER EXERCISE OF THE 
4 
FUNCTIONS 
OF 
THE 
COMMISSION 
OR 
WILLFULLY 
5 
MISLEADS OR ATTEMPTS TO MISLEAD THE COMMISSION 
6 
OR ANY OF ITS OFFICERS IN REPLYING TO INQUIRIES, 
7 
SHALL BE IMPOSED A FINE OF NOT LESS THAN FIFTY 
8 
THOUSAND PESOS (P50,000.00) UP TO TWO MILLION PESOS 
9 
(P2,000,000.00). 
10 
LIKEWISE, ANY PERSON WHO, ACTUATED BY MALICE OR 
11 
GROSS BAD FAITH, FILES A COMPLETELY UNWARRANTED 
12 
OR FALSE COMPLAINT WITH THE COMMISSION, SHALL BE 
13 
IMPOSED A SIMILAR FINE NOT LESS THAN FIFTY 
14 
THOUSAND PESOS (P50,000.00) UP TO TWO MILLION PESOS 
15 
(P2,000,000.00).” 
16 
SEC. 12. A new Section denominated as Section 33, containing sub-sections 
17 
33.1 and 33.2, is hereby inserted, and the subsequent sections consequently 
18 
renumbered, to read as follows: 
19 
“SEC. 33.1 REORGANIZATION. – TO ACHIEVE THE GOALS OF 
20 
THIS ACT, CONSISTENT WITH THE CIVIL SERVICE LAWS, 
21 
THE COMMISSION SHALL BE AUTHORIZED TO ARRANGE 
22 
FOR 
ITS 
REORGANIZATION, 
TO 
STREAMLINE 
ITS 
23 
STRUCTURE AND OPERATIONS, UPGRADE ITS HUMAN 
24 
RESOURCE 
COMPONENT, 
CREATE 
OR 
ABOLISH 
25 
ORGANIZATIONAL DIVISION, UNITS OR BRANCHES, AND 
26 
CREATE REGIONAL OFFICES.  
27 
SEC. 33.2. COMPENSATION AND OTHER EMOLUMENTS FOR 
28 
MEMBERS AND PERSONNEL OF THE COMMISSION. — THE 
29 
COMPENSATION AND OTHER EMOLUMENTS FOR THE 
30 


18 
MEMBERS AND PERSONNEL OF THE COMMISSION SHALL 
1 
BE EXEMPTED FROM THE COVERAGE OF REPUBLIC ACT 
2 
NO. 
6758, 
OTHERWISE 
KNOWN 
AS 
THE 
SALARY 
3 
STANDARDIZATION 
ACT. 
FOR 
THIS 
PURPOSE, 
THE 
4 
SALARIES 
AND 
OTHER 
EMOLUMENTS 
OF 
THE 
5 
CHAIRPERSON, THE COMMISSIONERS, AND PERSONNEL OF 
6 
THE COMMISSION SHALL BE SET BASED ON AN OBJECTIVE 
7 
CLASSIFICATION SYSTEM, TAKING INTO CONSIDERATION 
8 
THE IMPORTANCE AND RESPONSIBILITIES ATTACHED TO 
9 
THE RESPECTIVE POSITIONS, AND SHALL BE SUBMITTED 
10 
TO THE PRESIDENT OF THE PHILIPPINES FOR APPROVAL.” 
11 
SEC. 13. Separability Clause. - If any provision of this Act is declared 
12 
unconstitutional or invalid, the other provisions not otherwise affected shall 
13 
remain in full force and effect. 
14 
SEC. 14. Repealing Clause. - All laws, decrees, executive orders, rules and 
15 
regulations, and other issuances or parts thereof, which are inconsistent with 
16 
this Act are hereby repealed, amended, or modified accordingly. 
17 
SEC. 15. Effectivity. -  This Act shall take effect fifteen (15) days after its 
18 
publication in at least two (2) newspapers of general circulation.  
19 
 
20 
Approved, 
21