SIXTEENTH CONGRESS
OF THE REPUBLIC OF THE PHILIPPINES
First Regular Session

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HOUSE OF REPRESENTATIVES
House Bill No. 363.3

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Introduced by Representative Ben P, Evardone
Lone District, Eastern Samar

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EXPLANATORY NOTE

Since the inception of the first of the now hundreds of Government owned or controlled
i the core purpose or rationale behind the creation of each

snead, & OCC eannot be conesived if and when income generation isis sole reason for
existence, unlike an ordinary business corporation. Ths is so boovase Article XI, Section 16, 1987
nattution mandates the State to consider the common good ee auth economic viability as a test
for the establishment of a GOCC. Thus:

naacction 16. The Congress shall not, except by general law, provide for the
Formation, organization, or regulation of private corporation Government-owned
the uialled corporations may be created or established by spectal charters in
the interest of the common good and subject to the test of co nomic viability.”
(emphasis supplied)

It is worth recalling the case of AGRICULTURAL CREDIT and COOPERATIVE
FINANCING ADMINISTRATION (ACCFA), vs, ACCRA SUPERVISORS' ASSOCIATION,
ACCRA WORKERS’ ASSOCIATION, and THE COURT OF INDUSTRIAL RELATIONS, G.R.
No. 1-21484, November 29, 1969 which, perhaps, elucidates the rationale and underlying purpose for
the establishment of Government-owned or -controlled Corporation. ‘Thus:

“The growing complexities of modern society, however, have rendered this
traditional classification of the functions of government (into constituent and
ministrant functions) quite unrealistic, not to say obsolete, The areas which used
to be left to private enterprise and initiative and which the government was
called upon to enter optionally, and only "because it was beter equipped to
administer for the public welfare than is any private individual or &roup of
individuals," continue to lose their well-defined boundaries and to be absorbed
within activities that the Rovernment must undertake in its Sovereign capacity if-
it is to meet the increasing social challenges of the times, Here as almost
coorihere else the tendency is undoubtedly towards a greater sovtalicaten of
economic forces. Here of course this development was envisioned, indeed adopted
coreenttional policy, by the Constitution itself in its declaration at principle
conceming the promotion of social justice.” (emphasis supplied),


‘Therefore, sinee the primordial consideration in the establishment of GOCCs is public service
and the general welfare, not purely income generation, it becomes imperative for persons appointed
pr elected to carry out the tasks of such GOCC to be always mindful staher Purpose. For, the office
he holds is verily'a public service office,

‘This bill, which among others, seeks to limit the tenure and place a cap on allowances,
bonuses, and other incentives of Chairmen and members of the boanl of directors/trustees, reiterates
And emphasizes the public service role of GOCCs, in light of recent events where re Commission on
at ts nce again unearthed fat bonuses and allowances of certain often running. their
respective GOCCs,

Hence, its on this score that its immediate passage is earnestly sought,

BEN ae


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SIXTEENTH CONGRESS )
OF THE REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESE ‘ATIVES

House Bill No.3 E82.

Introduced by Representative Ben P, Evardone
Lone District, Eastern Samar

AN ACT
MODIFYING REPUBLIC ACT NUMBER 10149 AND EXECUTIVE ORDER
NUMBER 24, SERIES OF 2011

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

SECTION 1, No chairman or member of the board of directors/trustees covered by Republic
Act Number 10149 and Executive Order Number 24, Series of 2011 shall serve in the board of
dlirectors/trustees for more than a total period of twenty-four months, ineluding reappointment and
hold-over capacity: Provided that, such chairman or board member may thereafter be appointed or
¢lected in another government-owned or controlled corporation or agency,

SECTION 2, Except for reasonable per diems and necessary expenses provided in
accordance with Executive Order Number 24, Series of 2011, no chairman or member of te board of
directorstustees covered by Republic Act Numbered 10149 and Executive Order Number 24, Series
of 2011 shall, for every twelve months of inoumbeney, be entitled to receive allowances, incentives,
or bonuses in whatever form or nomenclature in excess ofthe amount equivalent to twiee the amount
received as per diem,

jan or member of the board of dir rectors/trustees serves as such in more than
one entity covered by Republic Act No. 10149 and Executive Order Number 24, Series of 2011 he
shall be entitled to receive, for himself, the highest amount of allowance, bonus, or incenti ive given by
any ofthe entities he serves in. Al other amounts shall be recsived by him and emitted te the general
fund of the national government,

All benefits, allowances, incentives, bonuses, in whatever form or nomenclature, granted in
Sxcess of the amount equivalent to twice the amount received as per diem during the period of
incumbency of any chairman or member of the board of directorstrustees covered by Republic Act
Numbered 10149 and Executive Order Number 24, Series of 2011, shall accrue to the general fund of
the national government,

SECTION 3. The Office of the President shall issue the necessary rules and regulations for
the effective implementation of this Act,


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SECTION 4, Repealing Clause. — Provisions in Republic Act No, 10149 and Executive
Order Number 24, Series of 2011 which are inconsistent with this Act are hereby modified or
repealed accordingly.

SECTION 5. Efectivity. This Act shall take effect immediately after its complete

Publication in a newspaper of general circulation,

Approved,