FINANCIAL OVERVIEW - ICRS 2021

SUMMARY OF FINANCIAL STATEMENTS

SIZE OF THE SECTOR

In 2018, the total Assets of the GOCC Sector registered a minimal net increase of 2% from 2017 equivalent to ₱135.04 Billion. On the other hand, Liabilities maintained the same level with that of 2017. The total net worth of the entire GOCC Sector marginally increased by ₱134.28 Billion or 3.84% from 2017.

GOVERNMENT FINANCIAL SUPPORT TO GOCCs

Subsidies to the Government Corporate Sector

The Governance Commission has been promoting the proper distinction between subsidies and program funds received by the GOCC Sector. The term ‘subsidy’ is almost always taken to mean the underperformance of agencies or inability to cover their operating expenses and further incurrence of corporate deficits and losses. While this may be true in some cases, note that the bulk of budgetary support released to GOCCs is program or project funds.

FINANCIAL RETURNS

Dividend Remittance

GOCCs are required to declare dividends to the National Government under Republic Act No. 7656.

GOVERNANCE FRAMEWORK

THE "GOCC GOVERNANCE ACT OF 2011" (R.A. NO. 10149)

Government-Owned or -Controlled Corporations (GOCCs) have long been part of the government machinery for delivering services to the general public.

OWNERSHIP AND OPERATIONS MANUAL

The Ownership and Operations Manual institutionalizes the State Ownership Policy of recognizing the private sector as the main engine for inclusive growth and economic development, and consequently GOCCs must be used judiciously in addressing market failures and avoid engaging in activities purely for profit. The policy also mandates the clear separation between the regulatory functions and commercial activities of GOCCs in order to maintain a level playing field in the market.

CODE OF CORPORATE GOVERNANCE

The CODE OF CORPORATE GOVERNANCE establishes the structure of powers and responsibilities within a GOCC.

FIT AND PROPER RULE

As part of its mandate to oversee the selection and nomination of directors/trustees and maintain the quality of Board Governance in GOCCs, the Governance Commission crafted the FIT AND PROPER RULE.

PERFORMANCE EVALUATION SYSTEM (PES)

The PERFORMANCE EVALUATION SYSTEM (PES) and the PERFORMANCE-BASED BONUS/INCENTIVE GUIDELINES provide the framework for transforming GOCCs into strategic and performance-driven corporations anchored on good corporate governance. The system adopts the Balanced Scorecard framework for monitoring and evaluating the strategic performance of GOCCs on quality of services, financial management, operations, and human capital.

CORPORATE GOVERNANCE SCORECARD (CGS) FOR GOCCs

The Corporate Governance Scorecard (CGS) for GOCCs aims to annually assess the Corporate Governance performance of GOCCs under GCG using a methodology benchmarked against the Principles of Corporate Governance of the Organisation for Economic Co-operation and Development (OECD) and the ASEAN Corporate Governance Scorecard.

COMPENSATION AND POSITION CLASSIFICATION SYSTESM (CPCS)

The Compensation and Position Classification System (CPCS) standardizes compensation in GOCCs and makes it competitive with the private sector doing comparable work in order to enable GOCCs to attract, retain, and motivate a corps of competent civil servants.

MAJOR DEVELOPMENT PROJECTS OF GOCCs

The Governance Commission issued GCG M.C. No. 2018-03 to amend policies that will guide the GOCCs to a simplified and efficient implementation of their respective major development projects. While GCG M.C. No. 2018-02 was issued to effectively streamline the process of implementing Major Development Projects and Major Contracts of GOCCs, the M.C. emphasizes that all agreements shall not be grossly disadvantageous to the government, and that GOCCs shall comply with existing laws, rules and regulations, regardless of covered land area and/or period of the contract.

NO GIFT POLICY

In line with the principle that public office is a public trust, the Governance Commission required all GOCCs to come up with a No Gift Policy to instill the practice of unbiased professionalism in the performance of responsibilities without expectation of reward. Accordingly, Officers and Employees in the GOCC Sector are duty-bound to not accept nor solicit any gift or favor whether directly or indirectly.

PERFORMANCE EVALUATION FOR DIRECTORS (PED)

The PERFORMANCE EVALUATION FOR DIRECTORS (PED) provides the process for measuring the performance of Appointive Directors to determine who can still be considered for reappointment each year. Appointive Directors are evaluated based on corporate performance, peer review, and their attendance at Board meetings. Under R.A. No. 10149, an Appointive Director must receive a performance rating of at least "above average" to be eligible for re-appointment in the succeeding year.

WHISTLEBLOWING POLICY FOR THE GOCC SECTOR

Through the Whistleblowing Policy, any concerned individual can report, provide information, and even testify on matters involving actions or omissions of the Appointive Directors, Officers, and Employees of GOCCs that are illegal, unethical, or completely disadvantageous to the GOCCs and/or the Government. The policy guarantees the protection of the Whistleblower against retaliation, the confidentiality of information coming from the Whistleblowing Report, and, if requested, the anonymity of the Whistleblower.

INTEGRATED CORPORATE REPORTING SYSTEM (ICRS)

The INTEGRATED CORPORATE REPORTING SYSTEM (ICRS) is created to serve as the central source of relevant information on GOCCs not only for GCG but also for various concerned agencies, the media, and the general public.

PORTFOLIO OF GOCCs

GOVERNMENT FINANCIAL INSTITUTIONS SECTOR

TRADE, AREA DEVELOPMENT, AND TOURISM SECTOR

EDUCATIONAL AND CULTURAL SECTOR

GAMING SECTOR

ENERGY AND MATERIALS SECTOR

AGRICULTURE, FISHERIES, AND FOOD SECTOR

UTILITIES AND COMMUNICATIONS SECTOR