GOCC whistleblower policy strengthened against retaliation for exposing fraud, corruption

Whistleblowers within government-owned and -controlled corporations (GOCCs) are now protected from retaliatory acts under a new policy.

Revisions have been made by the Governance Commission for GOCCs (GCG) on existing memorandum circulars (MCs) covering whistleblowers reporting illegal and unethical acts within the GOCC sector.

These include “concerns related to fraud, corruption, abuse of authority, sexual harassment, and other malpractices that may harm the public interest.”

Last week, the GCG, the monitoring body of the GOCC sector, published MC No. 2025-01, or the “Whistleblowing and Integrity Program (WHIP) for the GOCC Sector,” which the GCG referred to as a “more inclusive and empowering policy.”

“Among the most significant revisions is the inclusion of sexual harassment, illegal dismissal, and retaliatory acts against whistleblowers,” the GCG said in a Feb. 24 statement.

The GCG assured that the new policy “ensures that individuals who come forward in good faith will be protected against retaliation,” which includes the said offenses and any other adverse employment action.

Other forms of retaliatory actions include unjust salary or benefit deduction, contract termination without cause, biased performance evaluations, and any threats or acts that harm the whistleblower’s rights or interests.

Once retaliation attempts are made, whistleblowers can now report violations of corresponding laws, including Republic Act (RA) No. 11302 (Ease of Doing Business Act), RA 7877 (Anti-Sexual Harassment Act), and RA 11313 (Safe Spaces Act), among others.

According to the GCG, these additions show its commitment to addressing a broader range of offenses as part of the gender equality, disability, and social inclusion (GEDSI) framework.

WHIP applies to all GOCCs, government financial institutions (GFIs), and corporate government entities (GICP/GCE), including their subsidiaries. This aligns with RA 10149, which mandates financial stability and responsible fiscal management in GOCCs.

“The policy provides clear guidelines on the investigation process. Once a report is submitted, it shall undergo an initial review for assessment. If the report merits further investigation, the GCG shall ensure that appropriate actions are taken,” the Commission said.

“In cases where misconduct is found, the GCG shall pursue the appropriate remedy or action as discussed under the new MC,” it added.

For fiscal management actions, the GCG may order a special audit by the Commission on Audit (COA) or, when legally permitted, a review by an independent auditor.

Some actions that could be taken include urging involved parties to resolve disputes through mediation, arbitration, or other alternative dispute resolution methods. The GCG may also conduct site visits, interviews, surveys, and fact-finding activities beyond its office premises.

The new MC supersedes the GCG’s earlier MCs 2014-04, 2016-02, and 2023-03. It will take effect 15 days after being published in a newspaper of general circulation, posted on the GCG website, and filed with the University of the Philippines (UP) Law Center.