Press Release
January 25, 2008

Unqualified Palace appointees crowd GOCC boards

Unqualified presidential appointees who crowd high offices are just the "tip of the icerberg," as more of their kind land cushy jobs in the boards of government corporations or in private firms where government has shares in, Senate President Manny Villar said.

"Many individuals who have never tended a sarisari store in their life are parachuted into billion-peso companies, "he said.

"It's an open secret that directorships are being handed out to friends and allies of the appointing power. It is a tool to buy loyalty or command obedience," Villar said.

But Villar quickly pointed out that "while there are many qualified people who have responded to the call of public duty by joining the board of public firms, they are outnumbered by those who are clueless about their job and the company they are supposed to lead."

While those who are appointed to national government agencies have to meet certain academic and professional standards, " that requirement is not imposed in the filling up of directorships," he said.

"It is an irony that in almost all of these corporations, there are requirements to be met for a clerical position but there are no minimum requirements for one who would join the boardroom, "he said .

There are no "performance contracts" that would bind a director either, Villar further lamented. "He or she is not asked what his vision for the company is. If it is losing, what is the turnaround plan he or she is proposing to put it back in the black?"

This is probably the reason why most government-owned corporations need state subsidy for them to function "or even meet their payroll," Villar said.

To underscore the "veil of secrecy" that shrouds GOCC appointments , Villar pointed out "no master list of GOCC directors has been made public by Malacañang."

Government exposure in GOCCs is no laughing matter so appointments to these must not be treated in cavalier or careless fashion, Villar said.

Total assets of 601 existing GOCCs were pegged by the Commission on Audit at P5.27 trillion in 2006 "This is five times the annual national budget , " Villar said.

The GOCCs are clustered into banks and financial agencies (14); insurance, financing and real estate development (38); public utilities including energy, communication, transportation and water (472); industrial and area development , including housing and economic zones (31) ; agricultural, trading and manufacturing (28); and educational, social and cultural (18).

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