GCG wants more powers to abolish, merge state firms

MANILA  -The Governance Commission for Government-Owned and -Controlled Corporations (GCG) is pushing for amendments to its charter to “clarify and strengthen” the agency, the authority of which has been questioned by some quarters.

In particular, Development Bank of the Philippines is challenging the GCG’s pronouncement that the latter has the power to determine whether DBP and the Landbank of the Philippines should be merged without going through legislation.

DBP chair Dante Tinga argued that GCG’s charter—the Governance Act of Republic Act No. 10149, or the GOCC Governance Act of 2011—merely empowers the Commission to recommend actions to the President of the Republic.

https://business.inquirer.net/399900/dbp-decries-railroading-of-merger-with-landbank

In a statement, the GCG itself said that over the past year, “several issues” have been raised regarding the scope and even legality of the GCG’s powers and functions under its charter.

“In order to efficiently operate as a regulatory body for the GOCC sector, RA 10149 is proposed to be amended to address issues and clarify and strengthen the powers and functions of the GCG,” GCG chair Alex Quiroz said.

In fact, GCG Commissioner Gideon Mortel on May 25 met with House Speaker Martin Romualdez to discuss the proposed amendments.

Mortel said there were already draft bills to be submitted to the House leadership as they have discussed it already with Rep. Edwin Olivarez (first district, Parañaque), chair of the House committee on government enterprises and privatization.

At the Senate, the GCG submitted in December 2022 its proposed amendments to Sen. Alan Peter Cayetano, chair of the committee on government corporations and public enterprises.

Among the proposed changes is the standardization of the definition of GOCCs.

For continuity and efficiency, the GCG also wants fixed terms for its chair and commissioners, and a post for an executive director.

To strengthen its oversight powers, GCG is asking Congress for subpoena and contempt powers as well as investigative and disciplinary powers. GCG also wants the power to consolidate, rationalize and integrate GOCCs into national government agencies.

It also wants the power to set incentives for employees affected by rationalization, reorganization, merger, consolidation, integration, abolition or privatization of GOCCs.

—Ronnel W. Domingo INQ

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