Question & AnswerQ&A (Republic Act No. 10149)
Republic Act No. 10149 is known as the GOCC Governance Act of 2011.
The State aims to actively exercise its ownership rights in GOCCs, promote growth by ensuring their operations align with national development policies, and ensure GOCCs are responsive to public needs with transparent, accountable, and effective governance.
A GOCC is any agency organized as a stock or nonstock corporation vested with public functions and owned wholly or at least a majority by the Philippine government, including Government Instrumentalities with Corporate Powers (GICP) and Government Financial Institutions (GFI).
GOCCs are classified into: (1) Developmental/Social Corporations; (2) Proprietary Commercial Corporations; (3) Government Financial, Investment and Trust Institutions; (4) Corporations with Regulatory Functions; and (5) Others as classified by the GCG.
The GCG acts as the central advisory, monitoring, and oversight body attached to the Office of the President, with powers to evaluate GOCC performance, recommend reorganizations, establish governance standards, recommend appointive directors, conduct audits, and ensure alignment with national policies.
All appointive directors, officers, including CEOs, must comply with the Fit and Proper Rule determined by the GCG, which considers integrity, experience, education, training, and competence to ensure capable governance.
Appointive directors serve a term of one (1) year unless sooner removed for cause and continue to hold office until successors are appointed. Reappointment requires a performance score above average.
They must act with utmost loyalty and good faith, with extraordinary diligence, avoid conflicts of interest, apply sound business principles for financial soundness, and only employ fit and proper officers, always acting in the GOCC's best interest.
GOCCs must maintain a publicly accessible website posting their latest audited financial and performance reports, financial statements for the past five years, budgets, compensation details of directors and officers, borrowings, government subsidies, and other relevant information as required by the GCG.
Failure to return GOCC properties or profits within 30 days after demand can lead to imprisonment of one year, a fine twice the amount to be restituted, and potential disqualification from holding public office after trial and final judgment.