DOF Hails GCG for Boosting GOCC Governance, Profitability

Finance Secretary Ralph G. Recto commended the Governance Commission for Government-Owned and Controlled Corporations (GCG) for transforming GOCCs into profitable contributors to national progress through improved corporate governance standards.

Speaking at the GCG Awards Ceremony on November 25, 2024, Recto emphasized the impact of rigorous performance metrics established by the GCG, including the Corporate Governance Scorecard (CGS) and the Performance Evaluation System (PES).

These measures, he noted, provide clarity and discipline, enabling GOCCs to achieve their missions while contributing more earnings to the government.

“Because of its Corporate Governance Scorecard and Performance Evaluation System, we no longer operate in the dark,” Recto said, as relayed by Undersecretary Maria Luwalhati Dorotan Tiuseco. “Our GOCCs are now fulfilling their unique missions effectively and have become profitable partners in national progress.”

The CGS evaluates GOCCs against global corporate governance standards, assessing stakeholder relationships, transparency, and board responsibilities. The PES appraises their annual performance based on set targets and criteria. Since 2011, these systems have driven significant improvements in GOCC operations.

The Finance Chief highlighted the GCG’s achievements since its establishment through Republic Act No. 10149, also known as the GOCC Governance Act of 2011. The law introduced reforms to regulate and modernize the sector, which previously lacked accountability and transparency.

From 2011 to 2024, GOCCs remitted an average of PHP 56 billion annually in dividends—five times higher than the PHP 11 billion average from 2002 to 2011. In 2024 alone, as of October, 52 GOCCs remitted PHP 95.90 billion, a 51% increase compared to the same period last year. This year’s mandatory dividend remittance rate was raised from 50% to 75% of annual net earnings.

“These reforms allow us to fund the President’s priority programs for the welfare of all Filipinos without the need to borrow more or impose additional taxes,” Recto said. “This clearly tells us that when we enforce greater transparency and accountability, we do not just strengthen our institutions. We are delivering more hope, progress, and opportunities to every Filipino.”

Among the top-performing GOCCs, Land Bank of the Philippines (LANDBANK) stood out, remitting a record-breaking PHP 32.12 billion in dividends in 2024. The bank also received the highest corporate governance rating in 2023.

Recto expressed his support for the GCG’s initiative to ensure women occupy at least 30% of GOCC board seats, promoting diversity and sustainable development.

He also urged GOCCs to strive for excellence in serving the Filipino people. “Ineffectivity and inefficiency are forms of corruption. Let us aim higher and deliver more because the Filipino people deserve nothing less,” he said.

Executive Secretary Lucas P. Bersamin and GCG Commissioners Atty. Brian Keith F. Hosaka and Atty. Geraldine Marie B. Berberabe-Martinez also attended the ceremony.