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Business

Bill proposes systematic review of GOCCs' performance, viability

- Paolo Romero -

MANILA, Philippines – A neophyte lawmaker said there is a need to institutionalize a systematic review and evaluation of the performance of government-owned and controlled corporations (GOCCs) to establish their economy, efficiency and viability.

Tarlac Rep. Susan A. Yap was commenting on the Bureau of Treasury report that government spent P2.84 billion on subsidies in May 2010, which is three times higher than the P942 million spent in May 2009.

She said the National Government subsidy to the GOCCs has grown by more than 300 percent.

“The Department of Finance (DOF) has failed to reduce government subsidy to GOCCs and making them self-reliant and less dependent on financial assistance,” Yap said.

She is proposing that all GOCCs be directed to prepare their respective guidelines for better control and monitoring by the DOF.

Under her proposed measure, required guidelines shall serve as tools to anticipate, prevent and minimize certain difficulties that may adversely affect the financial condition of the corporation.

The bill to be known as Government-Owned and Controlled Corporations Accountability Act mandates the GOCCs to disclose and publish in at least one newspaper of general circulation within 30 days from the end of each calendar or fiscal year, the travel and hospitality expenses of directors and officers and contracts for goods and services over P1 million.

“The financial guidelines shall limit borrowing, lending and guaranteeing any form of financial transaction, while the operational guidelines shall seek to inhibit the corporation from engaging in activities outside its defined capabilities,” Yap said.

The measure shall also create a congressional oversight committee that will require the GOCCs to submit their quarterly and consolidated annual reports.

“Congress is the guardian of the coffers of the land and must ensure prudent spending of taxpayers money by these GOCCs,” Yap said.

“Every GOCC must be free from fraud, abuse and wastage, and must be made accountable through effective monitoring oversight by Congress for the benefit of the people,” she said.

BUREAU OF TREASURY

DEPARTMENT OF FINANCE

FINANCIAL

GOCCS

GOVERNMENT

GOVERNMENT-OWNED AND CONTROLLED CORPORATIONS ACCOUNTABILITY ACT

GUIDELINES

NATIONAL GOVERNMENT

SUSAN A

TARLAC REP

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