GOCC holdovers step down today

MANILA, Philippines – Hold-over officials of government-owned and controlled corporations (GOCCs) are stepping down from their posts effective today.

This could create a vacuum in several GOCCs as some of the appointees of President Duterte did not go through vetting process of the Governance Commission on GOCCs as prescribed under RA 10149.

The GCG source who declined to be identified because she is not authorized to speak on the matter, said the GCG has been “reminding” Malacanang about the requirement since it took over and even after memorandum circular 1 was issued. 

Under the circular, officials from the previous administration may stay on hold-over capacity until July 31.

Vetting and shortlisting requirements on GOCC appointments were listed under Section 16 of the GOCC Governance Act of 2011. It said presidential appointees to the director level, chief executives and board of trustees would need to come from a GCG shortlist.

Section 16 of the law states that all board members, chief executive officers and the equivalent as well as all appointive directors will need to pass the “fit and proper” rule.

“To maintain the quality of management of the GOCCs, the GCG...shall... prescribe, pass upon and review the qualifications and disqualifications of individuals appointed as officers, directors or elected CEO of the GOCC and shall disqualify those found unfit,” the law said.

Under GCG Memorandum Circular 2012-04, the vetting process includes soliciting nominations from the overseeing department of the GOCC, board of directors/trustees and stakeholder groups of the GOCC.

“GCG shall formally solicit nominations for all positions of appointive directors in each of the GOCCs, with indications as to who are being endorsed to the positions of chairman and CEO,” the circular said.

Nominations will then be reviewed and interviews  will  be conducted to come out with a shortlist where the president will select his or her appointment.

Sought for comment, Transportation spokesperson Cherie Mercado said Manila International Airport Authority (MIAA) general manager Ed Monreal was already interviewed by the GCG.

“As of now, he is still on acting capacity.  I believe the evaluation of the GCG may have an effect on his appointment,” Mercado said over the phone.

When asked if Monreal’s name came from DOT’s list of nominations, Mercado said her understanding was that the Office of the President would be the one to give it to the GCG.

The STAR tried but failed to get a comment from Presidential spokesperson Ernesto Abella.

Apart from Monreal, Civil Aviation Authority of the Philippines director-general Antonio Bunedia also needs to pass GCG scrutiny.

“His focus now is tomake reforms in the aviation industry during his first 100 days,” CAAP spokesperson Eric Apolonio said in a separate interview.

There are more than 90 GOCCs and it is not clear how many of those will undergo management revamp.

Philippine Amusement and Gaming Corp. CEO Andrea Domingo could not be immediately reached for comment.

Ma. Luisa Sebastian, SSS assistant vice-president for media affairs, said the state-run pension fund expects to have a new president soon to replace Emilio de Quiros Jr. 

Since the vetting process was not followed, the source said there could be problems as to the validity of contracts and agreements to be signed by GOCC appointees.