NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Third Regular Session
SENATE
2774
S. No.
//(©UiU' o' i;
24 AUG-7 P6-.42
RECEIVED BY. _
Introduced by Senator Loren B. Legarda
AN ACT
AMENDING REPUBLIC ACT NO. 10149, OTHERWISE KNOWN AS THE 
"GOCC GOVERNANCE ACT OF 2011"
EXPLANATORY NOTE
Since its creation, the Governance Commission for Government-Owned or 
-Controlled Corporations (GCG) has encountered numerous challenges in fuily 
exercising its mandate. Various issues have arisen regarding the scope and legaiity of 
GCG's powers and functions under its Charter. To address these issues and enhance 
the GCG's effectiveness, an amendment to Republic Act No. 10149, otherwise known 
as the "GOCC Governance Act of 2011" is needed.
The GCG is the central policy-making and reguiatory body mandated to 
safeguard the State's ownership rights and ensure that the operations of Government- 
Owned or -Controiled Corporations (GOCCs) are transparent and responsive to the 
needs of the public.
To streamline and improve the governance of GOCCs, this bill proposes to: 
harmonize the different definitions of a GOCC providing for a singie reference to avoid 
varying interpretations; lengthen the term of office of the members of the Governing 
Board of GOCCs from one (1) year to two (2) years; give the GCG the additional 
powers to consolidate and regularize GOCCs to guarantee full protection of the State's 
ownership rights in GOCCs and to ensure the operations of GOCCs are consistent with 
national development policies and programs; afford the GCG flexibility to classify 
GOCCs; grant the GCG subpoena and contempt powers for better enforcement of the


law; give investigatory powers to the GCG to ensure the faithful performance of the 
Governing Board and Officers; and improve asset administration and disposition.
Finally, to support these additional powers and functions, the creation of new 
organizational units and positions within the GCG is necessary.
These proposed amendments aim to address the challenges faced by the GCG, 
improve its regulatory capabilities, and ensure that GOCCs operate efficiently, 
transparently, and in alignment with national development goals.
In view of the foregoing, the passage of this measure is earnestly sought.
CORlN LEGARDA


NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Third Regular Session
)
SENATE
TIA.
S. N0._2h
d( tljr £
24 AUG-7 P6;42
Introduced by Senator Loren B. Legarda
AN ACT
AMENDING REPUBLIC ACT NO. 10149, OTHERWISE KNOWN AS THE 
"GOCC GOVERNANCE ACT OF 2011"
Be it enacted by the Senate and House of Representatives of the Philippines in the 
Congress assembled:
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Section 1. Section 3 of Republic Act No. 10149 is hereby amended as follows: 
" SEC. 3. Definition of Terms. -
XXX
"(H) CONSOLIDATION REFERS TO THE UNION OF TWO OR 
MORE EXISTING GOCCS TO FORM A CONSOLIDATED 
GOCC. IT IS A COMBINATION OF TWO OR MORE GOCCS BY 
WHICH THEIR RIGHTS, FRANCHISES, AND PROPERTY ARE 
COMBINED AND BECOME THOSE OF A SINGLE, NEW 
GOCC."
XXX
"[(e)] 
(P) Government-Owned or -Controlled Corporation
(GOCC) refers to any agency organized as a stock or nonstock 
corporation, vested with functions relating to public needs, whether 
governmental or proprietary in nature, and owned by the 
Government of the Republic of the Philippines directly or through 
its instrumentalities either wholly or, where applicable as in the 
case of stock corporations, to the extent of at least a majority of


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its outstanding capitai stock: Provided, [however, That—for 
purposes of this Act,] THAT the term "GOCC" shaii include 
GICP/GCE and GFI as defined herein, AND PROVIDED, 
FURTHER, THAT THE DEFINITION HEREIN SHALL 
SUPERSEDE ALL OTHER DEFINITIONS OF "GOCC" UNDER 
EXISTING LAWS."
XXX
"(Q) MERGER REFERS TO A UNION WHEREBY ONE GOCC 
ABSORBS ONE OR MORE EXISTING GOCCS, AND THE 
ABSORBING GOCC SURVIVES AND CONTINUES THE 
COMBINED FRANCHISE, MANDATE, AND BUSINESS."
XXX
"(Y) REGULARIZATION REFERS TO THE CONVERSION OR 
INTEGRATION OF AN EXISTING GOCC TO A REGULAR 
AGENCY OF THE GOVERNMENT, BECAUSE ITS CORPORATE 
FORM IS NO LONGER RELEVANT FOR ITS CURRENT 
OPERATIONS. THIS COULD BE PURSUED IN THE CASE OF 
GOCCS WHICH ARE NOT UNDERTAKING PROPRIETARY OR 
BUSINESS-TYPE OPERATIONS BUT FUNCTIONS AS 
REGULATION, PROVISION OF TECHNICAL ASSISTANCE, AND 
CONDUCT OF RESEARCH WHERE MINIMAL OR NO INCOME IS 
DERIVED."
XXX
Sec. 2. Section 5 of Republic Act No. 10149 is hereby amended as follows:
"SEC. 5. Creation of the Governance Commission for 
Government Owned or-Controlled Corporations. - x x x
"(a) Evaluate the performance and determine the relevance 
of the GOCC, to ascertain whether such GOCC should be 
reorganized, merged, CONSOLIDATED, streamlined, 
REGULARIZED, abolished, or privatized, in consultation with the 
department or agency to which a GOCC is attached, x x x:"


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(l)xxx;
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"(6) The functions, purpose or nature of operations of any group 
of GOCCs require consolidation under a holding company.
Upon determination by the GCG that it is to the best interest of the 
State that a GOCC should be reorganized, merged,
CONSOLIDATED, streamlined, REGULARIZED, abolished, or 
privatized, it shall:
"(i) Implement the reorganization [merger] or streamlining of 
the GOCC [, unless otherwise directed by the President; or];
"(ii) Recommend to the President the abolition, MERGER, 
CONSOLIDATION, REGULARIZATION, or privatization of the 
GOCC, and upon the approval of the President, implement such 
abolition, MERGER, CONSOLIDATION, REGULARIZATION, or 
privatization, unless the President designates another agency to 
implement such abolition, MERGER, CONSOLIDATION, 
REGULARIZATION, or privatization[.]:
PROVIDED, HOWEVER, THAT IN CASE OF ABOLITION OF 
GOCCS WHERE THERE IS A LACK OF QUORUM IN THE 
BOARD OF DIRECTORS/TRUSTEES IN ORDER TO 
IMPLEMENT IN ITS ENTIRETY THE LIQUIDATION OF THE 
GOCC, THE GCG SHALL IMPLEMENT SUCH ACTIONS AS 
MAY BE NECESSARY TO COMPLETE THE ABOLITION, SUCH 
AS, BUT NOT LIMITED TO, THE APPOINTMENT OF A 
TRUSTEE, OR ENLISTING THE ASSISTANCE OF ANOTHER 
GOVERNMENT AGENCY;
"PROVIDED, FURTHER, THAT THE MERGER OR 
CONSOLIDATION MAY COVER GOCCS WHETHER 
CHARTERED OR NONCHARTERED, AND SHALL BE EITHER 
OF THE FOLLOWING RESTRUCTURING MODES TO BE 
DEFINED BY THE GCG:


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"(A) DE JURE MERGER REFERS TO THE PROCESS WHEREBY 
ONE OR MORE EXISTING GOCC/S ARE ABSORBED BY 
ANOTHER GOCC WHICH SURVIVES AND CONTINUES THE 
COMBINED FRANCHISE, MANDATE, AND BUSINESSES OF 
THE ABSORBED GOCCS; AND
"(B) DE FACTO MERGER REFERS TO THE PROCESS 
WHEREBY ALL OR SUBSTANTIALLY ALL THE ASSETS AND 
BUSINESS ENTERPRISE OF AN EXISTING GOCC ARE 
TRANSFERRED TO ANOTHER GOCC, WHICH CONTINUES 
THE PURPOSE, FUNCTIONS, AND PROGRAMS OF THE 
TRANSFERRING GOCC."
"(Ill) DESIGN, PLAN, AND IMPLEMENT A SEPARATION 
INCENTIVE PAY ("SIP") AND/OR EARLY RETIREMENT 
INCENTIVE PAY ("ERIP"), IF NECESSARY, FOR AFFECTED 
EMPLOYEES AND OFFICERS OF A GOCC, WHICH IS EITHER 
REORGANIZED, STREAMLINED, MERGED, CONSOLIDATED, 
REGULARIZED, ABOLISHED, OR PRIVATIZED."
XXX
"(b) Classify GOCCs [into: (1) Dcvciopmcntal/Sociol Corporations;- 
(2)—Proprietary—Commercial—Corporations;—(3)—Government
Financial, Investment and Trust Institutions; (4) Corporations with
Regulatory Functions; and (5) Others as may be clossifiod by the
GCG, without prejudice to further sub classifications in each
eategery-and/or any other classification] based on parameters as 
it may find relevant or material such as, but not limited to, industry 
type. CLASSIFICATION HEREIN, SHALL INCLUDE THE 
DETERMINATION OF WHETHER OR NOT EXISTING GOCCS 
ARE EXCLUDED FROM THE COVERAGE OF R.A. NO. 10149, 
UPON EVALUATION OF THE ENTITY'S CHARTER, MANDATE, 
AND/OR PRIMARY PURPOSES, AS APPLICABLE. THIS 
SHALL INCLUDE THE DETERMINATION OF WHETHER OR 
NOT EXISTING ENTITIES ARE CONSIDERED GOCCS,


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WITHIN THE COVERAGE OF THIS ACT. UPON SUCH 
DETERMINATION, THE GCG SHALL PROCEED TO 
ASCERTAIN WHETHER SUCH ENTITY IS WITHIN THE 
REGULATORY JURISDICTION OF THE GCG. The classification 
shall guide the GCG in exercising its powers and functions as 
provided herein;"
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"(k) Prepare [a semi-annual progress report to be submitted to the 
President and the Congress. In its report, the GCG will providc-its
performance assessment of the GOCCs and recommend clear and
specific actions. Within one-hundred twenty (120) days from the
close of the year, the GCG shall prepare] an annual report on the 
performance of the GOCCs and RECOMMEND CLEAR AND 
SPECIFIC ACTIONS, AND submit it to the President and the 
Congress; [aed]"
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"(M) ISSUE SUBPOENA DUCES TECUM AND ORDER THE 
EXAMINATION OF ALL DOCUMENTS, PAPERS, FILES AND 
RECORDS, TAX RETURNS, AND BOOKS OF ACCOUNTS OF 
ANY GOCC OR PERSON WHO MAY HAVE CUSTODY OF THE 
SAME, AS MAY BE NECESSARY FOR THE EVALUATION, 
INVESTIGATION, OR PROPER MONITORING OF THE 
OPERATIONS AND PERFORMANCE OF THE SUBJECT GOCC 
AS DETERMINED BY GCG.
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TO ISSUE SUBPOENA TO SUMMON AND COMPEL 
WITNESSES TO APPEAR AND TESTIFY UNDER OATH 
BEFORE THE COMMISSION."
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"(N) CITE ANY PERSON FOR CONTEMPT OF THE 
COMMISSION, BOTH DIRECT AND INDIRECT, IN 
ACCORDANCE WITH THE PERTINENT PROVISIONS OF, 
AND PENALTIES PRESCRIBED, BY THE RULES OF COURT,


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FOR VIOLATION OF SECTION 5(M) OF THIS ACT OR
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NONCOMPLIANCE WITH ANY LAWFUL ORDER ISSUED BY
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THE COMMISSION."
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"(O) INVESTIGATE ANY MALFEASANCE, MISFEASANCE, OR
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NONFEASANCE IN OFFICE ALLEGEDLY COMMITTED BY THE
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MEMBERS OF THE GOVERNING BOARD OF THE GOCC, AND
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REFER THE SAME TO THE PROPER GOVERNMENT OFFICE
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FOR APPROPRIATE ACTION;
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"(P) after PRELIMINARY INQUIRY, REFER ANY
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MALFEASANCE, MISFEASANCE, OR NONFEASANCE
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ALLEGEDLY COMMITTED BY THE SENIOR OFFICERS OF
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THE GOCC TO THE PROPER BODY FOR APPROPRIATE
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ACTION; AND
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"(Q) DIRECT GOCCS AND ITS OFFICERS TO REGULARLY
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SUBMIT TO THE COMMISSION AN UPDATED INVENTORY
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OF ITS REAL PROPERTIES, AS WELL AS SHAREHOLDINGS
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IN PRIVATE OR OTHER GOVERNMENT CORPORATIONS.
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THE DISPOSITION OF A GOCC'S REAL PROPERTY SHALL
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REQUIRE THE PRIOR APPROVAL OF THE COMMISSION
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ACCORDING TO STANDARDS SET FORTH IN THE
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IMPLEMENTING RULES ISSUED BY THE COMMISSION."
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Sec. 3. A new Section denominated as Section 5-A is hereby inserted to read
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as follows:
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"SEC. 5-A ORGANIZATIONAL STRUCTURE OF THE GCG -
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THE GCG SHALL BE COMPOSED OF NINE (9) BUREAUS,
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EACH OF WHICH SHALL BE HEADED BY A DIRECTOR AND
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ASSISTED BY AN ASSISTANT DIRECTOR. THESE
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BUREAUS ARE THE FOLLOWING:
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[A] THE CORPORATE STANDARDS BUREAU;
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[B] THE CORPORATE GOVERNANCE A;


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[C] THE CORPORATE GOVERNANCE B;
[D] THE CORPORATE GOVERNANCE C;
[E] THE LEGAL AFFAIRS BUREAU;
[F] THE ADMINISTRATIVE AND FINANCE BUREAU;
[G] THE DISPOSITION AND ASSET MANAGEMENT 
BUREAU;
[H] THE STRATEGY AND MANAGEMENT BUREAU; AND
[I] 
THE INFORMATION AND COMMUNICATIONS 
TECHNOLOGY BUREAU."
Sec. 4. Section 6 of Republic Act No. 10149 is hereby amended to read as
follows:
" SEC. 6. Composition of the GCG. -The [GCG] COMMISSION 
shall be composed of five (5) members. The [Chairman] 
CHAIRPERSON with the rank of Cabinet Secretary and two (2) 
members with the rank of Undersecretary shall be appointed by the 
President. The Secretaries of the Department of Budget and 
Management and the Department of Finance shall sit as ex 
officio members.
"THE CHAIRPERSON AND THE COMMISSIONERS SHALL BE 
CITIZENS AND RESIDENTS OF THE PHILIPPINES, OF GOOD 
MORAL CHARACTER, OF RECOGNIZED PROBITY AND 
INDEPENDENCE, AND MUST HAVE DISTINGUISHED 
THEMSELVES PROFESSIONALLY IN PUBLIC, CIVIC, OR 
ACADEMIC SERVICE IN ANY OF THE FOLLOWING FIELDS: 
LAW, PUBLIC ADMINISTRATION, ACCOUNTING, FINANCE, 
MANAGEMENT, OR ECONOMICS. THEY MUST HAVE BEEN 
IN THE PRACTICE OF THEIR PROFESSIONS FOR AT LEAST 
TEN (10) YEARS.
THE TERM OF OFFICE OF THE CHAIRPERSON AND THE 
COMMISSIONERS SHALL BE SEVEN (7) YEARS WITHOUT 
REAPPOINTMENT. OF THE FIRST SET OF APPOINTEES, THE


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CHAIRPERSON SHALL HOLD OFFICE FOR SEVEN (7) YEARS
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AND OF THE FIRST TWO (2) COMMISSIONERS, ONE (1)
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SHALL HOLD OFFICE FOR A TERM OF FIVE (5) YEARS AND
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THE OTHER FOR A TERM OF THREE (3) YEARS. IN CASE A
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VACANCY OCCURS BEFORE THE EXPIRATION OF THE TERM
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OF OFFICE, THE APPOINTMENT TO SUCH VACANCY SHALL
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ONLY BE FOR THE UNEXPIRED TERM OF THE
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PREDECESSOR.
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THE CHAIRPERSON AND THE COMMISSIONERS SHALL
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ENJOY SECURITY OF TENURE AND SHALL NOT BE
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SUSPENDED OR REMOVED FROM OFFICE EXCEPT FOR
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JUST CAUSE AS PROVIDED BY LAW."
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Sec. 5. A new subsection to Section 6, denominated as Section 6.1, is hereby
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inserted to read as follows:
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" SEC. 6.1 EXECUTIVE DIRECTOR OF THE COMMISSION - AN
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EXECUTIVE DIRECTOR, WITH A RANK EQUIVALENT TO AN
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ASSISTANT SECRETARY, SHALL BE APPOINTED BY THE
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PRESIDENT OF THE PHILIPPINES UPON
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RECOMMENDATION BY THE CHAIRPERSON: PROVIDED,
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THAT NO PERSON SHALL BE APPOINTED AS EXECUTIVE
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DIRECTOR UNLESS HE/SHE IS A HOLDER OF A DEGREE IN
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ANY OF THE FOLLOWING FIELDS: ECONOMICS, BUSINESS,
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PUBLIC ADMINISTRATION, LAW, MANAGEMENT OR THEIR
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EQUIVALENT AND HAS AT LEAST TEN (10) YEARS
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RELEVANT EXPERIENCE IN CORPORATE GOVERNANCE:
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PROVIDED, FURTHER, THAT PRIOR TO HIS/HER
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APPOINTMENT, HE/SHE HAS THE REQUISITE
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ELIGIBILITIES FOR THIRD LEVEL CAREER SERVICE
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POSITION PURSUANT TO THE CAREER EXECUTIVE RANK
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SYSTEM."
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"THE EXECUTIVE DIRECTOR SHALL ASSIST THE
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COMMISSION IN CARRYING OUT THE FUNCTIONS OF THE


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GCG AND SHALL HAVE THE FOLLOWING DUTIES AND
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FUNCTIONS:
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(A) TO IMPLEMENT 
POLICIES, STANDARDS, RULES,
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AND REGULATIONS PROMULGATED BY THE
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COMMISSION;
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(B) TO EXERCISE GENERAL SUPERVISION OVER THE
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DAY-TO-DAY OPERATIONS OF THE GCG, UNDER THE
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DIRECTION OF THE CHAIRPERSON;
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(C) TO REPRESENT THE GCG IN OFFICIAL FUNCTIONS
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WHICH THE CHAIRPERSON AND THE OTHER
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COMMISSIONERS MAY NOT BE ABLE TO ATTEND; AND
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(D) TO EXERCISE SUCH OTHER DUTIES AND FUNCTIONS
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AS MAY BE DELEGATED BY THE CHAIRPERSON AND THE
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COMMISSIONERS."
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Sec. 6. A new Section denominated as Section 6-A is hereby inserted to read
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as follows:
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"SEC. 6-A. IMMUNITY FROM SUIT. - THE CHAIRPERSON,
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THE COMMISSIONERS, OFFICERS, AND EMPLOYEES OF
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THE COMMISSION SHALL NOT BE SUBJECT TO ANY
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ACTION, CLAIM, OR DEMAND IN CONNECTION WITH ANY
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ACT DONE OR OMITTED BY THEM IN THE PERFORMANCE
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OF THEIR DUTIES AND EXERCISE OF THEIR POWERS,
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EXCEPT FOR THOSE ACTIONS AND OMISSIONS DONE IN
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EVIDENT BAD FAITH OR GROSS NEGLIGENCE."
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Sec. 7. A new Section denominated as Section 6-B is hereby inserted to read
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as follows:
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"SEC. 6-B. INDEMNITY. - UNLESS THE ACTIONS OF THE
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COMMISSION OR ITS CHAIRPERSON, ANY OF ITS
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COMMISSIONERS, OFFICERS, OR EMPLOYEES ARE FOUND
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TO BE IN WILLFUL VIOLATION OF THIS ACT, PERFORMED
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WITH EVIDENT BAD FAITH OR GROSS NEGLIGENCE, THE


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COMMISSION, ITS CHAIRPERSON, APPOINTIVE 
COMMISSIONERS, OFFICERS, AND EMPLOYEES ARE HELD 
FREE AND HARMLESS TO THE FULLEST EXTENT 
PERMITTED BY LAW FROM ANY LIABILITY, AND THEY 
SHALL BE INDEMNIFIED FOR ANY AND ALL LIABILITIES, 
LOSSES, CLAIMS, DEMANDS, DAMAGES, DEFICIENCIES, 
COSTS, AND EXPENSES OF WHATSOEVER KIND AND 
NATURE THAT MAY ARISE IN CONNECTION WITH THE 
EXERCISE OF THEIR POWERS AND IN THE PERFORMANCE 
OF THEIR DUTIES AND FUNCTIONS.
"THE COMMISSION SHALL UNDERWRITE OR ADVANCE 
LITIGATION COSTS AND EXPENSES, INCLUDING LEGAL 
FEES AND OTHER EXPENSES OF EXTERNAL COUNSEL, OR 
PROVIDE LEGAL ASSISTANCE TO ITS CHAIRPERSON, 
COMMISSIONERS, OFFICERS, AND EMPLOYEES IN 
CONNECTION WITH ANY CIVIL, CRIMINAL, 
ADMINISTRATIVE OR ANY OTHER ACTION OR 
PROCEEDING, TO WHICH THEY ARE MADE A PARTY BY 
REASON OF, OR IN CONNECTION WITH, THE EXERCISE OF 
THEIR AUTHORITY OR THE PERFORMANCE OF THEIR 
DUTIES AND FUNCTIONS UNDER THIS 
ACT: PROVIDED, THAT SUCH LEGAL PROTECTION SHALL 
NOT APPLY TO ANY CIVIL, CRIMINAL, ADMINISTRATIVE, 
OR ANY ACTION OR PROCEEDING THAT MAY BE 
INITIATED BY THE COMMISSION, AGAINST SUCH 
CHAIRPERSON, COMMISSIONERS, OFFICERS, AND 
EMPLOYEES: 
PROVIDED, FURTHER, THAT THE
CHAIRPERSON, COMMISSIONERS, OFFICERS, AND 
EMPLOYEES WHO SHALL RESIGN, RETIRE, TRANSFER TO 
ANOTHER AGENCY OR BE SEPARATED FROM THE SERVICE, 
SHALL CONTINUE TO BE PROVIDED WITH SUCH LEGAL 
PROTECTION IN CONNECTION WITH ANY ACT DONE OR
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OMITTED TO BE DONE BY THEM IN GOOD FAITH DURING
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THEIR TENURE OR EMPLOYMENT WITH THE
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COMMISSION: PROVIDED, FINALLY, THAT IN THE EVENT
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OF A SETTLEMENT OR COMPROMISE, INDEMNIFICATION
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SHALL BE PROVIDED ONLY IN CONNECTION WITH SUCH
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MATTERS COVERED BY THE SETTLEMENT AS TO WHICH
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THE COMMISSION IS ADVISED BY COUNSEL THAT THE
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PERSONS TO BE INDEMNIFIED DID NOT COMMIT ANY
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NEGLIGENCE OR MISCONDUCT.
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"THE COSTS AND EXPENSES INCURRED IN DEFENDING
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THE AFOREMENTIONED ACTION, SUIT, OR PROCEEDING
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MAY BE PAID BY THE COMMISSION IN ADVANCE OF THE
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FINAL DISPOSITION OF SUCH ACTION, SUIT, OR
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PROCEEDING UPON RECEIPT OF AN UNDERTAKING BY OR
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ON BEHALF OF THE CHAIRPERSON, COMMISSIONER,
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OFFICER, AND EMPLOYEE TO REPAY THE AMOUNT
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ADVANCED SHOULD IT ULTIMATELY BE DETERMINED BY
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THE COMMISSION THAT ONE IS NOT ENTITLED TO BE
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INDEMNIFIED AS PROVIDED IN THIS SECTION."
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Sec. 8. Section 7 of Republic Act No. 10149 is hereby amended to read as
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follows:
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"SEC. 7. Powers and Functions of the [Chairman]
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CHAIRPERSON. — The [management of the GCG shall be vested
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in the Chairman v&te} CHAIRPERSON shall have the following
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powers and duties:
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(a) Preside over the meetings of the GCG;
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(b) Direct and manage the day-to-day affairs and business of the
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GCG;
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(c) DETERMINE [With the approval of the GGGy determine] the
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staffing pattern and the number of personnel of the GCG and define
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their duties and responsibilities;
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(d) APPOINT, [With the approvol of the GCG, to oppoint,] remove,
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suspend, or otherwise discipline for cause, any DIRECTOR,
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OFFICER, OR employee of the GCG; and
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(e) Perform such other duties as may be delegated or assigned to
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him/HER by the GCG from time to time."
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Sec. 9. Section 17 of Republic Act No. 10149 is hereby amended to read as
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follows:
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"SEC. 17. Term of Office. - Any provision in the charters of each
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GOCC to the contrary notwithstanding, the term of office of each
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Appointive Director shall be for [one (1)] TWO (2) years, unless
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sooner removed for cause: Provided, however. That the Appointive
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Director shall continue to hold office until the successor is
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appointed. An Appointive Director may be nominated by the GCG
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for reappointment by the President only if one obtains a
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performance score of above average or its equivalent or higher in
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the immediately preceding year of tenure as Appointive Director
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based on the performance criteria for Appointive Directors for the
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GOCC." XXX
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Sec. 10. Section 23 of Republic Act No. 10149 is hereby amended to read as
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follows:
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"SEC 23. Limits to Compensation, per Diems, Allowances, and
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Incentives. - The charters of each of the GOCCs to the contrary
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notwithstanding, the compensation, per diems, allowances, and
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incentives of the members of the Board of Directors/Trustees of
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the GOCCs shall be determined by the GCG [using as a reference,
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among others. Executive Order No. 24 dated February 10, 2011]:
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Provided, however. That Directors/Trustees shall not be entitled to
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retirement benefits as such directors/trustees. SUCH
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COMPENSATION, PER DIEMS, ALLOWANCES, AND
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INCENTIVES MUST HAVE THE FOLLOWING
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CHARACTERISTICS:
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(1) 
JUST AND EQUITABLE IN ACCORDANCE WITH THE 
PRINCIPLE OF EQUAL PAY FOR WORK OF EQUAL VALUE;
(2) 
GENERALLY COMPARABLE WITH THOSE IN THE 
PRIVATE SECTOR DOING COMPARABLE WORK IN 
ORDER TO ATTRACT, RETAIN, AND MOTIVATE A CORPS 
OF COMPETENT MEMBERS OF THE BOARD OF 
DIRECTORS/TRUSTEES;
(3) 
PERFORMANCE-BASED WITH DUE CONSIDERATION 
TO INDIVIDUAL AND ORGANIZATIONAL, 
DEVELOPMENTAL, AND REGULATORY PERFORMANCE, 
WHERE APPLICABLE; AND
(4) 
FAIR, REASONABLE, AND IN CONSIDERATION OF 
FISCAL REALITIES, SUCH AS THE AVAILABILITY OF 
FUNDS AND THE FINANCIAL CAPABILITY OF THE 
ORGANIZATION."
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Sec. 11. A new Section denominated as Section 32 is hereby inserted, and the
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subsequent sections consequently renumbered, to read as follows:
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"SEC. 32. PENALTIES. — ANY PERSON WHO WILLFULLY
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OBSTRUCTS OR HINDERS THE PROPER EXERCISE OF THE
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FUNCTIONS OF THE COMMISSION OR WILLFULLY
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MISLEADS OR ATTEMPTS TO MISLEAD THE COMMISSION
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OR ANY OF ITS OFFICERS IN REPLYING TO THEIR
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INQUIRIES SHALL BE IMPOSED 
A FINE OF 
NOT
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EXCEEDING FIFTY THOUSAND PESOS (P50,000.00).
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LIKEWISE, ANY PERSON WHO, ACTUATED BY MALICE OR
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GROSS BAD FAITH, FILES A COMPLETELY UNWARRANTED
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OR FALSE COMPLAINT WITH THE COMMISSION SHALL BE
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IMPOSED A SIMILAR FINE NOT 
EXCEEDING FIFTY
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THOUSAND PESOS (P50,000.00)."
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Sec. 12. A new Section denominated as Section 33 is hereby inserted to read
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as follows:
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"SEC. 33. REORGANIZATION. - TO ACHIEVE THE GOALS OF
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THIS ACT, CONSISTENT WITH THE CIVIL SERVICE LAWS,
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THE COMMISSION IS HEREBY AUTHORIZED TO PROVIDE
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FOR ITS REORGANIZATION, TO STREAMLINE ITS
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STRUCTURE AND OPERATIONS, UPGRADE ITS HUMAN
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RESOURCE COMPONENT, CREATE OR ABOLISH
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ORGANIZATIONAL DIVISION, UNITS OR BRANCHES, AND
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CREATE REGIONAL OFFICES."
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Sec. 13. Separability Clause. - If any provision of this Act is declared
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unconstitutional or invalid, the other provisions not otherwise affected shall remain in
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full force and effect.
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Sec. 14. Repealing Clause. - All laws, decrees, executive orders, rules and
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regulations, and other issuances or parts thereof which are inconsistent with this Act
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are hereby repealed, amended, or modified accordingly.
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Sec. 15. Effectivity. - This Act shall take effect fifteen (15) days after its
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publication in at least two (2) newspapers of general circulation.
Approved,
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