Three state-run banks and insurance corporations received the highest ratings for corporate governance in 2022 from the Governance Commission of GOCCs (GCG).

During the Government-owned and Controlled Corporations (GOCC) governance awards on Monday, Nov. 20, the Land Bank of the Philippines (Landbank) ranked first place with a scorecard of 102.50.

The Social Security System (SSS) came second with an overall rating of 102.19, while the Government Service Insurance System (GSIS) followed with 102.08.

These grades were based on the CGS standards which evaluate the corporate governance initiatives of GOCCs through various methods deemed efficient towards stakeholder relationships, disclosure and transparency, and responsibilities of the Board.

Karen L. Tangco-Pascasio, GCG Director reported that the whole GOCC sector garnered a 61.54 percent average score after the 2022 evaluation.

Subsequently, the top performers were recognized for contributing a large CGS percentage, namely the gaming sector, which held a grade of 82.24 percent.

The government financial institutions (GFI) had 73.45 percent, and the energy and materials had 63.79 percent.

GCG official also stressed the need to comply with corporate governance practices and timely disclosures, stating that “more than 50 percent or 47 GOCCs have a rating equivalent between average to fail.”

“GOCCs must look into having a separate corporate and social responsibility section on their official websites,” she advised.

Additionally, the GCG said that a regular policy review will be conducted through a series of stakeholder consultations with the GOCC to garner feedback from their experience as well as be provided with self-assessments.

The commission noted that consultative meetings with subject experts and relevant organizations are needed to update and revise the standards of CGS.

Executive Secretary Lucas P. Bersamin discussed the vital role of GOCCs as their agenda must be focused on the economy’s renewable and long-term goals.

“[The performance of] GOCCs is deeply rooted in governance,” he said. “Understanding that there are challenges in the governance pushes productivity and growth of the country, the policies strengthen governance culture [in every state-run corp].”

For 2022, the Bureau of the Treasury recorded a total of 48.64 billion of dividends from GOCCs covered by the Republic Act 10149, or the GOCC Governance Act of 2011.

The contribution is higher by 23 percent, or 39.42 billion in the year 2021.

“Since 2012, the GOCCs have remitted a total of 413.16 billion in dividends and these have funded various programs of the national government,” he added.

The remittances of these corporations to coffers were utilized for infrastructures, education, health and social services. (Gabriell Christel Galang)