Tuesday, June 7, 2011

GOCC Governance Act of 2011 Becomes Law

Republic Act 10149, or the GOCC Governance Act of 2011, came into law today as President Benigno Aquino III signed it, overhauling the compensation system of the entire GOCC and removing excessive salaries, allowances, and other perks of their heads and board members.

Term of Office
The new law limits the office terms of officials into one  year. In addition, the term of office of all appointed incumbent heads and board members of GOCCs will end by June 30, 2011 unless they are reappointed or a replacement is appointed sooner by the President.

Governance Commission
The law also creates the Governance Commission of the GOCCs that will oversee the coordination and implication of government policies in these state corporations.

GOCC Website
The law requires all GOCCs to maintain a website that will allow the public free access of its financial statements.

Exclusion
The Act excludes the central bank, state universities and colleges, cooperatives, local water districts, and research institutions.

VIEWS
President Benigno Aquino III: "We will end the system of patronage in our GOCCs."

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