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May 31, 2006 |
The Development Bank of the Philippines scored highest among 31 Government-owned and controlled corporations in the Corporate Governance Scorecard (CGS). The results were presented by Baltazar Endriga, trustee of the Insitute of Corporate Directors (ICD) at the third annual dinner for ICD fellows and associates last May 24, 2006 at the Rizal Ballroom, Makati Shangri-la.
Also included in the top 5 GOCCs were the Philippine Deposit Insurance Corporation (PDIC), Philippine Export-Import Credit Agency (PHILEXIM), Land Bank of the Philippines (LBP), and the National Transmission Corporation (NTC).
DBP’s scorecard rating is a commendable feat for the Bank since this is not only the first run of the CGS for GOCCs in the Philippines, but more notably, in the world. The project was conducted by the ICD, a non-profit organization promoting corporate governance reform and professional corporate directorship in the Philippines.
In his message, ICD chairman Jesus P. Estanislao, explained that CGS is a tool that praises and trains the spotlight upon those who do well; in time, it should also inform the general public of those who do not do as well. The support they are giving to everyone is an opportunity to improve their corporate governance practices. They should be told the specific areas in which they can improve their scores, where they can make significant advances towards better corporate governance practices. This is where the corporate governance scorecards come in.
According to Dr. Estanislao, the ICD is aware that many sectors in the economy have expressed that GOCCs and GFIs should help set the tone for improved corporate governance practices. By virtue of its character, GOCCs and GFIs that are fully invested with public interest should be at the very top of efforts at corporate governance reforms.
Representatives from the Office of the President and Department of Finance attended the annual gathering that included newly-inducted ICD fellows, DBP directors Joseph Pangilinan and Miguel Romero.
The scorecard created by ICD for GOCCs and GFIs is in accordance with the OECD Guidelines on Corporate Governance of State-owned Enterprises (SOEs). It was crafted with the support of the British Embassy Manila, the Capital Market Development Council (CMDC) and in line with the President’s Governance Advisory Council.
Five major concerns of corporate governance in SOEs are covered such as ensuring an effective legal and regulatory framework for SOEs, the State acting as an Owner, relations with stakeholders, transparency and disclosure, and the responsibilities of the boards of SOEs.
The CGS heavily relies on information gathered through publicly available documents for scoring. The Office of the Government Corporate Counsel was also consulted for the laws and regulations covering the 31 companies. Inclusion in the companies to be rated does not lie in the willingness of these companies to be rated.
In a related development, Association of Development Financing Institutions in Asia and the Pacific (ADFIAP) Secretary General Octavio Peralta congratulated DBP through President & CEO Reynaldo David, under whose leadership the Bank topped the corporate governance scorecard for all GOCCs, including GFIs. In a letter, Mr. Peralta expressed ADFIAP’s pride in the achievement of its member institution and passed this as a milestone for the rest of its members to emulate.
According to ADFIAP, the recognition given to DBP is a development achievement. Mr. Peralta further said, “I look forward to many other successes of your institution in its quest for a sustainable future of our country. ADFIAP believes that sustainable development would not be at all possible without good governance.” |
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