Most government firms fail governance standards

MANILA, Philippines - More than half of 90 state firms fell below average in the first-ever evaluation of their corporate governance standards conducted by the Governance Commission for GOCC (GCG).

While there is no pass or failing mark yet, 50 government-owned and -controlled corporations scored less than the average of 43.34 percent on a scorecard that gauges disclosure and transparency, stakeholder relations, and board responsibilities.

“Once the assessment is done, we discuss the results with the GOCC so they may know which corporate governance practices should they improve on,” GCG commissioner Ma. Angela Ignacio told The STAR.

“We have just concluded the pilot roll out so we are just establishing the baseline for the passing score,” she added.

Ignacio also clarified the scorecard is different from the performance evaluation standards, which measures GOCCs’ fulfillment of their mandates and duties.

Included among the worse performers were transport agencies led by the Manila International Airport Authority with 40 percent.

It also include Mactan-Cebu International Airport Authority (42 percent), Philippine National Railways (41 percent), Cebu Port Authority (39.5 percent) and Light Rail Transit Authority (38 percent). and Civil Aviation Authority of the Philippines (16.63 percent).

Utility firms Power Sector Assets and Liabilities Management Corp. (38.5 percent), Metropolitan Waterworks and Sewerage System (38.5 percent) and Local Water Utilities Administration (34 percent) also fell below average.

National Food Authority (37 percent) and National Irrigation Administration (31.5 percent), in charge of dealing with recent El Nino phenomenon, were also present.

State media Philippine Television Network Inc. (25 percent) and Intercontinental Broadcasting Corp. (zero) were included as well.

Also falling behind was the United Coconut Planters Bank (42.33 percent) and state-run Philippine Health Insurance Corp. (36 percent).

At the bottom of the list were Nayong Filipino Foundation Inc. and PEA Tollway Corp. which both scored -2 percent.

On the flip side, top performers were Philippine Deposit Insurance Corp. (94.5 percent), Land Bank of the Philippines (89.5 percent), and Poro Point Management Corp. (86 percent).

Placing seventh and eight were pension funds Social Security System (78.5 percent) and Government Service Insurance System (77 percent).

Ignacio said evaluation results were not tied up to any monetary compensation or perks.

“Instead of a punishment (to bad performers), we would recognize the top scorers. For this year, we conferred them an Award of Excellence,” she said.

The Corporate Governance Scorecard is part of GCG’s efforts to monitor, reform and strengthen GOCC operations.

GCG was formed through Republic Act 10149 in 2012 after then President Benigno Aquino III lambasted GOCC executives for their big bonuses despite their firms’ under-performance.