2018News

GCG justifies revocation of memo circular

By Rea Cu, September 4 2018; Business Mirror

https://businessmirror.com.ph/gcg-justifies-revocation-of-memo-circular/

Image Credit to Governance Commission for GOCCs (GCG)

The Governance Commission for GOCCs (GCG) clarified that it has issued Memorandum  Circular  2018-02 to revoke MC 2013-03 after agency findings showed that the latter MC contained provisions and processes that unnecessarily impede the timely approval and implementation of government projects.

The GCG explained in a news statement issued on Tuesday that, in consideration with the Duterte administration’s policy to remove redundant requirements and align the development and implementation of infrastructure projects under the private-public partnership  scheme, the GCG issued MC 2018-02 to effectively streamline the process of implementing major development projects and major contracts of government-owned and -controlled corporations (GOCCs).

Under GCG MC 2018-02, major development projects and contracts of GOCCs shall continue to strictly fall under the review and decision-making process of the National Economic and Development Authority, the Neda Investment Coordination Committee, the Neda Board, and the Economic Development Cluster, pursuant to all applicable existing laws, rules and regulations.

GOCCs shall submit to the GCG a report on said projects and contracts entered into for purposes of monitoring GOCC performance and asset utilization.

“It should be noted that, in all cases, GCG MC 2018-02 emphasizes that all agreements shall not be grossly disadvantageous to the government, and that GOCCs shall comply with existing laws, rules and regulations, regardless of covered land area and period,” the GCG said.

To ensure this, the new MC even requires the favorable legal opinion or contract review of the Office of the Government Corporate Counsel (OGCC) on GOCC contracts before entering into the said agreement.

Earlier, former OGCC Chief Rudolf Philip Jurado said President Duterte was misled on the details of the 75-year contract of Nayong Pilipino with Landing Resorts Philippines Development Corp., adding that there was no truth that the contract was anomalous.

He explained in a television interview that the deal followed rules implemented by GCG MC 2013-03 issued in February 2014, which was then revoked after the issuance of GCG MC 2018-02 in January 2018.

In May this year, President Duterte fired Jurado amid reports alleging irregularity in the legal opinion he issued allowing the Aurora Pacific Economic Zone to approve a 75-year permit to a casino operator.

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