2018News

House panel weighs bill abolishing Governance Commission for GOCCs

By Charmaine A. Tadalan, October 23 2018; Business World

https://www.bworldonline.com/house-panel-weighs-bill-abolishing-governance-commission-for-goccs/

Image Credit to Business World

A BILL abolishing the Governance Commission for Government-Owned and -Controlled Corporations (GOCCs) is being considered by the House Committee on Government Enterprise and Privatization.

The Panel’s technical working group, led by Ako Bicol Rep. Rodel M. Batocabe, on Tuesday began deliberation of House Bill 3014, which seeks to eliminate the oversight body over redundancy of functions.

“Instead of piloting the development and growth of GOCCs, the GCG became another bureaucratic layer in the already confounded structure of checks and balances,” as stated in the explanatory note.

The bill also noted the GCG overlaps with the Commission on Audit, National Economic and Development Authority (NEDA), Government Procurement Policy Board and Office of the Government Corporate Counsel.

The GCG, in response, recommended the review of the proposed measure as it argued it does not perform the role of the said agencies.

In its position paper submitted to the Committee, the GCG said, for one, it differs from the DBM in terms of mandate.

The DBM “reviews and analyzes Budget proposals from GOCCs with National Government Subsidy,” while the GCG “does not approve, not even review COBs (Corporate Operating Budgets).”

For its part, NEDA, while it supports the bill’s intention to address bureaucracy, expressed reservations on the proposal to abolish the GCG for its role, particularly in intervening between GOCCs and the private sector.

“There are GOCCs that provide the necessary goods and services in the absence of private providers, and this could sometimes constrain the entry of potential private players that may provide high or better quality goods or services,” NEDA said in its position paper.

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