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THIRTEENTH CONGRESS 
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OF THE REPUBLIC OF THE PHILIPPINES 1 
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El\rEQ frv : c ?4-- 
Third Regular Session 
S E N A T E  
Senate Bill No. 
Prepared jointly by the Committees on Government Corporations and Public 
Enterprises; Education, Arts and Culture and Finance with Senators Gordon, 
Osmefia Ill, Flavier and Drilon as authors thereof 
AN ACT 
CONTROLLED 
CORPORATIONS, 
GOVERNMENT 
FINANCIAL 
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, AND FOR OTHER 
PURPOSES 
TO ENSURE THE ACCOUNTABILITY OF GOVERNMENT-OWNED OR 
INSTITUTIONS, 
STATE-OWNED 
UNIVERSITIES, 
AND 
OTHER 
Be it enacted by the Senate and the House of Representatives of the Philippines in Congress Assembled: 
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SECTION 1. Short Title. - This Act shall be known as the Government- 
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SECTION 2. Policy. - It is the policy of the State to create or establish 
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Government-Owned or Controlled Corporations only in the interest of the 
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It is hereby declared a national policy to require all government 
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corporations to clearly define the parameters andlor limits of their financial and 
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operational capabilities consistent with their established mandates and charters. 
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SECTION 3. Government-Owned or Confrolled Corporation Defined. 
13 - For purpose of this Act, “Government-owned or Controlled Corporation” or 
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“GOCC” refers to a stock or non-stock corporation, performing governmental or 
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proprietary functions directly chartered by special law or, if otherwise formed, is 
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owned or controlled by the Government directly or indirectly through a parent or 
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subsidiary corporation. 
It includes Government Financial Institutions, State- 
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SECTION 4. Asset and Liability Management Guidelines. - The 
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definition of the limits of the financial and operational capabilities of each GOCC 
Owned or Controlled Corporations (GOCCs) Accountability Act of 2007”. 
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. 
Owned Universities, and other similar agencies in the public sector 


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shall be embodied in their respective asset and liability management guidelines 
which are universally accepted management tools whereby financial and 
operational activities are automatically confined within clearly defined limits. 
Foremost among the financial guidelines are the limits on borrowing, 
lending and guaranteeing any form of financial transaction, risk and/or 
commitment. 
Foremost among the operational guidelines are the recognition and 
acceptance of the limits of in-house talents and capabilities thereby inhibiting 
said corporation from engaging in activities outside its defined capabilities or in 
cases where it is necessary to engage in such transactions or activities, the 
mandatory requirement to tap outside talents preferably from other government 
agencies or institutions. 
SECTION 5. Use of Asset and Liability Management Guidelines. - The 
Asset and Liability Management Guidelines shall be used primarily as a tool to 
anticipate, obviate prevent and/or minimize certain eventualities that may 
adversely affect the financial condition of individual corporations. As a standard 
requirement, however, it is seen as a vital instrument to stabilize and solidify the 
country's overall financial condition. 
In cases where a GOCC is under the control or supervision of a 
department of the National Government, adherence to these asset and liability 
guidelines shall be the responsibility of the department under which these 
corporations belong. The department covered shall prescribe their respective 
policies and procedures including penalties for their violations, in order to ensure 
that such guidelines are strictly complied with. 
SECTION 6. Central Monitoring and Confrol by the Deparfment of 
Finance. - The central monitoring and control of the overall financial condition of 
GOCCs shall be made by the Department of Finance (DOF) which shall 
consolidate all related figures into an annual report. Within thirty (30) days from 
the end of each calendar year, the DOF shall submit this annual report to the 
Office of the President, copy furnished the Senate and the House of 
Representatives. 
.SECTION 7. Submission of GOCC 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 include all financial reports and minutes 
of directors' and shareholders' meetings for the subject quarter. 
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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. 
SECTION 8. 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 
one million pesos 
SECTION 9. 
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 co-chaired by the 
Chairpersons of the Senate Committee on Government Corporations and Public 
Enterprises and the House Committee on Government Enterprises and 
Privatization. 
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. 
SECTION I O .  Powers and Functions of the Congressional Oversight 
Committee for GOCCs. - The Congressional Oversight Committee for GOCCs 
shall have the following powers and functions: 
(PhP1,000,000). 
(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; 
(4) Summon by subpoena ad fesfificandum any public or private citizen to 
testify before it, or require by subpoena duces tecum to produce before 
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it such records, reports or other documents as may be necessary in 
the performance of its functions; 
(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 employees and personnel, 
whether temporary or contractual, subject to applicable laws; and 
(8) Exercise all other powers necessary to attain its purposes. 
SECTION 11. 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 criminal liability. 
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 following: 
(1) Accomplishment of the set goals as may be set forth in their respective 
(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. 
SECTION 12. Submission of Recommendations - The Congressional 
Oversight Committee on GOCCs shall submit its recommendations to the Senate 
and the House of Representatives, copy furnished to the Office of the President, 
for appropriate action. The recommendations may include the following: 
(1 ) Continued existence of and corresponding budgetary allocation for 
(2) Termination of the existence of or budget allocation for the GOCC by 
(3) Merger or consolidation of GOCCs performing similar or overlapping 
charters or otherwise; 
each GOCC; 
either privatization or dissolution; 
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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 
SECTION 13. 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. 
SECTION 14. 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. 
SECTION 15. Effecfivify Clause. - 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, 
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