Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

17" Congress
Second Regular Session

7530

HOUSE BILL NO.

Introduced by: HON. LORNA C. SILVERIO

EXPLANATORY NOTE

The Governance Commission for Government-Owned and —Controlled
Corporations (GCG) was created through Republic Act No. 10149 to promote
financial viability and fiscal discipline in Government-Owned or —Controlled
Corporations and to strengthen the role of the state in its governance and
management to make them more responsive to the needs of public interest.
Likewise, its primary function of overseeing the operations of all the GOCC is in
recognition of the potential of GOCCs as significant tools for economic
development of our nation.

However, instead of directing the development and growth of GOCCs, the
GCG became another bureaucratic layer in the already perplexed structure of
checks and balances, which takes up valuable time and resources of the GOCC.
Long processing and red-tape are among the criticisms against the bureaucracy. In
fact, for the past six years, GOCCs have been constantly complaining of the
additional impositions and requirements laid down by the GCG which hinders their
day-to-day operations, thereby placing the GOCCs under the unpredictable caprice
and mercy of the GCG.

Prior to the passage of Republic Act 10149, otherwise known as the “GOCC
Governance Act of 2011”, all GOCCs were under the direct control and
supervision of the Office of the President. In addition, the GOCCs are also
answerable to: (1) Congress, which includes, but is not limited to its oversight
functions; (2) the Commission on Audit (COA), with respect to all accounts and
expenditures of funds and properties of the government; (3) the National Economic
and Development Authority (NEDA), in terms of economic development and
planning, and joint venture activities; (4) Government Procurement Policy Board
(GPPB), with respect to all its procurement projects; and (5) the Office of the
Government Corporate Counsel (OGCC), as the statutory counsel of all GOCCs,
among others.


Thus, in line with the call of President Rodrigo Roa Duterte in his Budget
Message, Fiscal Year 2017 to eliminate redundant, duplicative, and overlapping
functions and organizations in the Executive Branch, the revocation of R.A.
10149, abolishing the Governance Commission for GOCCs is required.

For the foregoing reasons, the passage of this bill is earnestly sought.

Herne. plow

LORNA C. SILVERIO


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

17" Congress
Second Regular Session

HOUSE BILL NO. 7530

Introduced by: HON. LORNA C. SILVERIO

AN ACT TO ABOLISH THE GOVERNANCE COMMISSION FOR GOCCs REPEALING
FOR THE PURPOSE RA 10149 OTHERWISE KNOWN AS “GOCC GOVERNANCE ACT
OF 2011”

Be it enacted by the Senate and the House of Representatives of the Philippines in Congress
Assembled:

SECTION 1. The Governance Commission for Government-Owned or Controlled
Corporations (hereinafter referred to as GCG) is hereby abolished.

SECTION 2. All officers and employees of the abolished GCG are hereby given two and a half
(2.12) months salary for each year of service as separation pay.

SECTION 3. The functions and duties of the abolished GCG are hereby transferred to the
different Departments of the government with the similar functions and duties.

SECTION 4. Implementing Rules and Regulations - the Department of Finance, the
Department of Budget and Management and the Commission on Audit shall issue the necessary
rules and regulations necessary for the full implementation of this Act.

SECTION 5. Appropriation - The necessary funding needed for the payment of the separation
benefits provided for in this Act shall be included in the General Appropriations Act of 2019.

SECTION 6. Separability Clause — If any portion or provision of this Act is declared
unconstitutional, the same shall not affect the validity and effectivity of the other provisions not
affected thereby.


SECTION 7. Repealing Clause - All laws, parts of laws, decrees, presidential issuances,
proclamations, orders, ordinances, and administrative resolutions in conflict with the provisions
of this Act are hereby amended, modified or repealed accordingly.

SECTION 8. Effectivity — This Act shall take effect fifteen (15) days after its publication in the
Official Gazette or in at least two (2) newspapers of general circulation, whichever comes earlier.

Approved,

Yorn A. blows