Amending the Gocc Governance Act

TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES First Regular Session 25 JUL 14 A10:26 SENATE S. No. _ Introduced by Senator Jinggoy Ejercito Estrada AN ACT AMENDING REPUBLIC ACT NO. 10149, OTHERWISE KNOWN AS THE "GOCC GOVERNANCE ACT OF 2011" EXPLANATORY NOTE The Governance Commission for Government-Owned or -Controlled Corporations (GCG) was created under Republic Act No. 10149, otherwise known as the "GOCC Governance Act of 2011". Republic Act No. 10149 was enacted to address the reported abuses in the remuneration scheme and inefficiencies in the operations of the GOCCs. It operates under the principle that GOCCs have potential as significant tools for economic development. It was declared a State policy to promote the growth of GOCCs by ensuring that their operations are consistent with national development policies and programs. Under Republic Act No. 10149, GCG is mandated as the central policy-making and regulatory body to safeguard the State's ownership rights and ensure that the operations of GOCCs are transparent and responsive to the needs of the public. However, in order to efficiently operate as a regulatory body for the GOCC sector, there is a necessity to amend certain provisions of RA No. 10149 to address issues and clarify and strengthen the powers and functions of the GCG. This bill proposes to have a standard definition of GOCCs. The amendment includes granting

GCG power to consolidate, rationalize, and integrate GOCCs into national government agencies (NGAS). The measure likewise amends and fix the terms of the office of the GCG chairperson and commissioners. Also, the bill proposed the creation of an office for a GCG executive director for continuity and efficiency in the discharge of their functions. To strengthen its oversight powers, this measure proposed to grant GCG subpoena and contempt powers as well as investigative and disciplinary powers to improve its monitoring authority. Towards this end, this bill seeks to rationalize the powers and functions of GCG for the latter to ensure the faithful performance of the GOCCs of their mandate to be economically and financially viable. In this light, the immediate passage of this bill is recommended. JINGGOY EJERCITO ESTRADA

TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES ) First Regular Session 25 1 14 10:26 SENATE S. No. 462 Introduced by Senator Jinggoy Ejercito Estrada AN ACT AMENDING REPUBLIC ACT NO. 10149, OTHERWISE KNOWN AS THE "GOCC GOVERNANCE ACT OF 2011" Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

Section 1. Section 3 of Republic Act No. 10149, otherwise known as the "GOCC

Governance Act of 2011" is hereby amended as follows: "Sec. 3. Definition of Terms. - "XXX "(H) CONSOLIDATION REFERS TO THE UNION OF TWO OR MORE EXISTING GOCCS TO FORM A CONSOLIDATED GOCC. IT IS A COMBINATION OF TWO OR MORE GOCCS BY WHICH THEIR RIGHTS, FRANCHISES, AND PROPERTY ARE COMBINED AND BECOME THOSE OF A SINGLE, NEW GOCC; "xXX "[(o)] (P) Government-Owned or -Controlled Corporation (GOCC) refers to any agency organized as a stock or nonstock corporation, vested with functions relating to public needs, whether governmental or proprietary in nature, and owned by the Government of the Republic of the Philippines directly or through its instrumentalities either wholly or, where

applicable as in the case of stock corporations, to the extent of at least a majority of its outstanding capital stock: Provided, [however, That for purposes of this Act, THAT the term "GOCC" shall include GICP/GCE and GFI as defined herein. "XXX "(Q) MERGER REFERS TO A UNION WHEREBY ONE GOCC ABSORBS ONE OR MORE EXISTING GOCCS, AND THE ABSORBING GOCC SURVIVES AND CONTINUES THE COMBINED FRANCHISE, MANDATE, AND BUSINESS. "XXX "(Y) REGULARIZATION REFERS TO THE CONVERSION OR INTEGRATION OF AN EXISTING GOCC TO A REGULAR AGENCY OF THE GOVERNMENT, BECAUSE ITS CORPORATE FORM IS NO LONGER RELEVANT FOR ITS CURRENT OPERATIONS. THIS COULD BE PURSUED IN THE CASE OF GOCCS WHICH ARE NOT UNDERTAKING PROPRIETARY OR BUSINESS-TYPE OPERATIONS BUT FUNCTIONS AS REGULATION, PROVISION OF TECHNICAL ASSISTANCE, AND CONDUCT OF RESEARCH WHERE MINIMAL OR NO INCOME IS DERIVED. "XXX."

Sec. 2. Section 5 of Republic Act No. 10149 is hereby amended as follows:

"Sec. 5. Creation of the Governance Commission for Government-Owned or-Controlled Corporations. - xxx "(a) Evaluate the performance and determine the relevance of the GOCC, to ascertain whether such GOCC should be reorganized, merged, CONSOLIDATED, streamlined, REGULARIZED, abolished, or privatized, in consultation with

the department or agency to which a GOCC is attached. "x x X: "(1) XXX; "XXX; "(6) The functions, purpose or nature of operations of any group of GOCCs require consolidation under a holding company. "Upon determination by the GCG that it is to the best interest of the State that a GOCC should be reorganized, merged, CONSOLIDATED, streamlined, REGULARIZED, abolished, or privatized, it shall: "(i) Implement the reorganization [merger] or streamlining of the GOCC L-unless otherwise directed by the President; or]; "(ii) Recommend to the President the abolition, MERGER, CONSOLIDATION, REGULARIZATION, or privatization of the GOCC, and upon the approval of the President, implement such abolition, MERGER, CONSOLIDATION, REGULARIZATION, or privatization, unless the President designates another agency to implement such abolition, MERGER, CONSOLIDATION, REGULARIZATION, or privatization[.]: "PROVIDED, HOWEVER, THAT IN CASE OF ABOLITION OF GOCCS WHERE THERE IS A LACK OF QUORUM IN THE BOARD OF DIRECTORS/TRUSTEES IN ORDER TO IMPLEMENT IN ITS ENTIRETY THE LIQUIDATION OF THE GOCC, THE GCG SHALL IMPLEMENT SUCH ACTIONS AS MAY BE NECESSARY TO COMPLETE THE ABOLITION, SUCH AS, BUT NOT LIMITED TO, THE APPOINTMENT OF A TRUSTEE, OR ENLISTING THE ASSISTANCE OF ANOTHER GOVERNMENT AGENCY;

"PROVIDED, FURTHER, THAT THE MERGER OR CONSOLIDATION MAY COVER GOCCS WHETHER CHARTERED OR NONCHARTERED, AND SHALL BE EITHER OF THE FOLLOWING RESTRUCTURING MODES TO BE DEFINED BY THE GCG: "(A) DE JURE MERGER REFERS TO THE PROCESS WHEREBY ONE OR MORE EXISTING GOCC/S ARE ABSORBED BY ANOTHER GOCC WHICH SURVIVES AND CONTINUES THE COMBINED FRANCHISE, MANDATE, AND BUSINESSES OF THE ABSORBED GOCCS; AND "(B) DE FACTO MERGER REFERS TO THE PROCESS WHEREBY ALL OR SUBSTANTIALLY ALL THE ASSETS AND BUSINESS ENTERPRISE OF AN EXISTING GOCC ARE TRANSFERRED TO ANOTHER GOCC, WHICH CONTINUES THE PURPOSE, FUNCTIONS, AND PROGRAMS OF THE TRANSFERRING GOCC. "(III) DESIGN, PLAN, AND IMPLEMENT A SEPARATION INCENTIVE PAY ("SIP") AND/OR EARLY RETIREMENT INCENTIVE PAY ("ERIP"), IF NECESSARY, FOR AFFECTED EMPLOYEES AND OFFICERS OF A GOCC, WHICH IS EITHER REORGANIZED, STREAMLINED, MERGED, CONSOLIDATED, REGULARIZED, ABOLISHED, OR PRIVATIZED. "XXX "(b) Classify GOCCs [into: (1) Developmental/Social Corporations; (2) Proprietary-Commercial Corporations; (3) Government Financial, Investment and Trust Institutions; (4) Corporations with Regulatory Functions; and (5) Others as may be classified by the GCG, without prejudice to further sub classifications in each category and/or other

clasSification] based on parameters as it may find relevant or material such as, but not limited to, industry type. CLASSIFICATION HEREIN, SHALL INCLUDE THE DETERMINATION OF WHETHER OR NOT EXISTING GOCCS ARE EXCLUDED FROM THE COVERAGE OF R.A. NO. 10149, UPON EVALUATION OF THE ENTITY'S CHARTER, MANDATE, AND/OR PRIMARY PURPOSES, AS APPLICABLE. THIS SHALL INCLUDE THE DETERMINATION OF WHETHER OR NOT EXISTING ENTITIES ARE CONSIDERED GOCCS, WITHIN THE COVERAGE OF THIS ACT. UPON SUCH DETERMINATION, THE GCG SHALL PROCEED TO ASCERTAIN WHETHER SUCH ENTITY IS WITHIN THE REGULATORY JURISDICTION OF THE GCG. The classification shall guide the GCG in exercising its powers and functions as provided herein;" "X XX "(k) Prepare [a semi annual progress report to be submitted to the President and the Congress. In its report, the GCG will provide its performance assessment of the GOCCs and recommend clear and specific actions. Within one hundred twenty (120) days from the close of the year, the GCG shall prepare] an annual report on the performance of the GOCCS and RECOMMEND CLEAR AND SPECIFIC ACTIONS, AND submit it to the President and the Congress; [and] "XXX "(M) ISSUE SUBPOENA DUCES TECUM AND ORDER THE EXAMINATION OF ALL DOCUMENTS, PAPERS, FILES AND RECORDS, TAX RETURNS, AND BOOKS OF ACCOUNTS OF ANY GOCC OR PERSON WHO MAY HAVE CUSTODY OF THE SAME, AS MAY BE NECESSARY FOR THE EVALUATION, INVESTIGATION, OR PROPER

MONITORING OF THE OPERATIONS AND PERFORMANCE OF THE SUBJECT GOCC AS DETERMINED BY GCG. "TO ISSUE SUBPOENA TO SUMMON AND COMPEL WITNESSES TO APPEAR AND TESTIFY UNDER OATH BEFORE THE COMMISSION. "(N) CITE ANY PERSON FOR CONTEMPT OF THE COMMISSION, BOTH DIRECT AND INDIRECT, IN ACCORDANCE WITH THE PERTINENT PROVISIONS OF, AND PENALTIES PRESCRIBED, BY THE RULES OF COURT, FOR VIOLATION OF SECTION 5(M) OF THIS ACT OR NONCOMPLIANCE WITH ANY LAWFUL ORDER ISSUED BY THE COMMISSION. "(0) INVESTIGATE ANY MALFEASANCE, MISFEASANCE, OR NONFEASANCE IN OFFICE ALLEGEDLY COMMITTED BY THE MEMBERS OF THE GOVERNING BOARD OF THE GOCC, AND REFER THE SAME TO THE PROPER GOVERNMENT OFFICE FOR APPROPRIATE ACTION; "(P) AFTER PRELIMINARY INQUIRY, REFER ANY MALFEASANCE, MISFEASANCE, OR NONFEASANCE ALLEGEDLY COMMITTED BY THE SENIOR OFFICERS OF THE GOCC TO THE PROPER BODY FOR APPROPRIATE ACTION; AND "(Q) DIRECT GOCCS AND ITS OFFICERS TO REGULARLY SUBMIT TO THE COMMISSION AN UPDATED INVENTORY OF ITS REAL PROPERTIES, AS WELL AS SHAREHOLDINGS IN PRIVATE OR OTHER GOVERNMENT CORPORATIONS. THE DISPOSITION OF A GOCC'S REAL PROPERTY SHALL REQUIRE THE PRIOR APPROVAL OF THE COMMISSION ACCORDING TO

STANDARDS SET FORTH IN THE IMPLEMENTING RULES ISSUED BY THE COMMISSION."

Sec. 3. A new Section denominated as Section 5-A is hereby inserted to read

as follows: "SEC. 5-A. ORGANIZATIONAL STRUCTURE OF THE GCG. - THE GCG SHALL BE COMPOSED OF NINE (9) BUREAUS, EACH OF WHICH SHALL BE HEADED BY A DIRECTOR AND ASSISTED BY AN ASSISTANT DIRECTOR. THESE BUREAUS ARE THE FOLLOWING: "(A) THE CORPORATE STANDARDS BUREAU; "(B) THE CORPORATE GOVERNANCE A; "(C) THE CORPORATE GOVERNANCE B; "(D) THE CORPORATE GOVERNANCE C; "(E) THE LEGAL AFFAIRS BUREAU; "(F) THE ADMINISTRATIVE AND FINANCE BUREAU; "(G) THE DISPOSITION AND ASSET MANAGEMENT BUREAU; "(H) THE STRATEGY AND MANAGEMENT BUREAU; AND "(I) THE INFORMATION AND COMMUNICATIONS TECHNOLOGY BUREAU."

Sec. 4. Section 6 of Republic Act No. 10149 is hereby amended to read as

follows: "Sec. 6. Composition of the GCG. - The [GCG] COMMISSION shall be composed of five (5) members. The [Chairman] CHAIRPERSON with the rank of Cabinet Secretary and two (2) members with the rank of Undersecretary shall be appointed by the President. The Secretaries of the Department of Budget and Management and the Department of Finance shall sit as ex officio members. "THE CHAIRPERSON AND THE COMMISSIONERS SHALL BE CITIZENS AND RESIDENTS OF THE

PHILIPPINES, OF GOOD MORAL CHARACTER, OF RECOGNIZED PROBITY AND INDEPENDENCE, AND MUST HAVE DISTINGUISHED THEMSELVES PROFESSIONALLY IN PUBLIC, CIVIC, OR ACADEMIC SERVICE IN ANY OF THE FOLLOWING FIELDS: LAW, PUBLIC ADMINISTRATION, ACCOUNTING, FINANCE, MANAGEMENT, OR ECONOMICS. THEY MUST HAVE BEEN IN THE PRACTICE OF THEIR PROFESSIONS FOR AT LEAST TEN (10) YEARS. "THE TERM OF OFFICE OF THE CHAIRPERSON AND THE COMMISSIONERS SHALL BE SEVEN (7) YEARS WITHOUT REAPPOINTMENT. OF THE FIRST SET OF APPOINTEES, THE CHAIRPERSON SHALL HOLD OFFICE FOR SEVEN (7) YEARS AND OF THE FIRST TWO (2) COMMISSIONERS, ONE (1) SHALL HOLD OFFICE FOR A TERM OF FIVE (5) YEARS AND THE OTHER FOR A TERM OF THREE (3) YEARS. IN CASE A VACANCY OCCURS BEFORE THE EXPIRATION OF THE TERM OF OFFICE, THE APPOINTMENT TO SUCH VACANCY SHALL ONLY BE FOR THE UNEXPIRED TERM OF THE PREDECESSOR. "THE CHAIRPERSON AND THE COMMISSIONERS SHALL ENJOY SECURITY OF TENURE AND SHALL NOT BE SUSPENDED OR REMOVED FROM OFFICE EXCEPT FOR JUST CAUSE AS PROVIDED BY LAW."

Sec. 5. A new subsection to Section 6, denominated as Section 6.1, is hereby

inserted to read as follows: "SEC. 6.1 EXECUTIVE DIRECTOR OF THE COMMISSION. - AN EXECUTIVE DIRECTOR, WITH A RANK EQUIVALENT TO AN ASSISTANT SECRETARY, SHALL BE APPOINTED BY THE PRESIDENT OF THE PHILIPPINES UPON RECOMMENDATION BY THE

CHAIRPERSON: PROVIDED, THAT NO PERSON SHALL BE APPOINTED AS EXECUTIVE DIRECTOR UNLESS HE/SHE IS A HOLDER OF A DEGREE IN ANY OF THE FOLLOWING FIELDS: ECONOMICS, BUSINESS, PUBLIC ADMINISTRATION, LAW, MANAGEMENT OR THEIR EQUIVALENT AND HAS AT LEAST TEN (10) YEARS RELEVANT EXPERIENCE IN CORPORATE GOVERNANCE: PROVIDED, FURTHER, THAT PRIOR TO HIS/HER APPOINTMENT, HE/SHE HAS THE REQUISITE ELIGIBILITIES FOR THIRD LEVEL CAREER SERVICE POSITION PURSUANT TO THE CAREER EXECUTIVE RANK SYSTEM. "THE EXECUTIVE DIRECTOR SHALL ASSIST THE COMMISSION IN CARRYING OUT THE FUNCTIONS OF THE GCG AND SHALL HAVE THE FOLLOWING DUTIES AND FUNCTIONS: "(A) TO IMPLEMENT POLICIES, STANDARDS, RULES, AND REGULATIONS PROMULGATED BY THE COMMISSION; "(B) TO EXERCISE GENERAL SUPERVISION OVER THE DAY-TO-DAY OPERATIONS OF THE GCG, UNDER THE DIRECTION OF THE CHAIRPERSON; "(C) TO REPRESENT THE GCG IN OFFICIAL FUNCTIONS WHICH THE CHAIRPERSON AND THE OTHER COMMISSIONERS MAY NOT BE ABLE TO ATTEND; AND "(D) TO EXERCISE SUCH OTHER DUTIES AND FUNCTIONS AS MAY BE DELEGATED BY THE CHAIRPERSON AND THE COMMISSIONERS."

Sec. 6. A new Section denominated as Section 6-A is hereby inserted to read

as follows:

"SEC. 6-A. IMMUNITY FROM SUIT. - THE CHAIRPERSON, THE COMMISSIONERS, OFFICERS, AND EMPLOYEES OF THE COMMISSION SHALL NOT BE SUBJECT TO ANY ACTION, CLAIM, OR DEMAND IN CONNECTION WITH ANY ACT DONE OR OMITTED BY THEM IN THE PERFORMANCE OF THEIR DUTIES AND EXERCISE OF THEIR POWERS, EXCEPT FOR THOSE ACTIONS AND OMISSIONS DONE IN EVIDENT BAD FAITH OR GROSS NEGLIGENCE."

Sec. 7. A new Section denominated as Section 6-B is hereby inserted to read

as follows: "SEC. 6-B. INDEMNITY. - UNLESS THE ACTIONS OF THE COMMISSION OR ITS CHAIRPERSON, ANY OF ITS COMMISSIONERS, OFFICERS, OR EMPLOYEES ARE FOUND TO BE IN WILLFUL VIOLATION OF THIS ACT, PERFORMED WITH EVIDENT BAD FAITH OR GROSS NEGLIGENCE, THE COMMISSION, ITS CHAIRPERSON, APPOINTIVE COMMISSIONERS, OFFICERS, AND EMPLOYEES ARE HELD FREE AND HARMLESS TO THE FULLEST EXTENT PERMITTED BY LAW FROM ANY LIABILITY, AND THEY SHALL BE INDEMNIFIED FOR ANY AND ALL LIABILITIES, LOSSES, CLAIMS, DEMANDS, DAMAGES, DEFICIENCIES, COSTS, AND EXPENSES OF WHATSOEVER KIND AND NATURE THAT MAY ARISE IN CONNECTION WITH THE EXERCISE OF THEIR POWERS AND IN THE PERFORMANCE OF THEIR DUTIES AND FUNCTIONS. "THE COMMISSION SHALL UNDERWRITE OR ADVANCE LITIGATION COSTS AND EXPENSES, INCLUDING LEGAL FEES AND OTHER EXPENSES OF EXTERNAL PROVIDE LEGAL COUNSEL, OR ASSISTANCE TO ITS CHAIRPERSON,

COMMISSIONERS, OFFICERS, AND EMPLOYEES IN CONNECTION WITH ANY CIVIL, CRIMINAL, ADMINISTRATIVE OR ANY OTHER ACTION OR PROCEEDING, TO WHICH THEY ARE MADE A PARTY BY REASON OF, OR IN CONNECTION WITH, THE EXERCISE OF THEIR AUTHORITY OR THE PERFORMANCE OF THEIR DUTIES AND FUNCTIONS UNDER THIS ACT: PROVIDED, THAT SUCH LEGAL PROTECTION SHALL NOT APPLY TO ANY CIVIL, CRIMINAL, ADMINISTRATIVE, OR ANY ACTION OR PROCEEDING THAT MAY BE INITIATED BY THE COMMISSION, AGAINST SUCH CHAIRPERSON, COMMISSIONERS, OFFICERS, AND EMPLOYEES: PROVIDED, FURTHER, THAT THE CHAIRPERSON, COMMISSIONERS, OFFICERS, AND EMPLOYEES WHO SHALL RESIGN, RETIRE, TRANSFER TO ANOTHER AGENCY OR BE SEPARATED FROM THE SERVICE, SHALL CONTINUE TO BE PROVIDED WITH SUCH LEGAL PROTECTION IN CONNECTION WITH ANY ACT DONE OR OMITTED TO BE DONE BY THEM IN GOOD FAITH DURING THEIR TENURE OR EMPLOYMENT WITH THE COMMISSION: PROVIDED, FINALLY, THAT IN THE EVENT OF A SETTLEMENT OR COMPROMISE, INDEMNIFICATION SHALL BE PROVIDED ONLY IN CONNECTION WITH SUCH MATTERS COVERED BY THE SETTLEMENT AS TO WHICH THE COMMISSION IS ADVISED BY COUNSEL THAT THE PERSONS TO BE INDEMNIFIED DID NOT COMMIT ANY NEGLIGENCE OR MISCONDUCT. "THE COSTS AND EXPENSES INCURRED IN DEFENDING THE AFOREMENTIONED ACTION, SUIT, OR PROCEEDING MAY BE PAID BY THE COMMISSION

IN ADVANCE OF THE FINAL DISPOSITION OF SUCH ACTION, SUIT, OR PROCEEDING UPON RECEIPT OF AN UNDERTAKING BY OR ON BEHALF OF THE CHAIRPERSON, COMMISSIONER, OFFICER, AND EMPLOYEE TO REPAY THE AMOUNT ADVANCED SHOULD IT ULTIMATELY BE DETERMINED BY THE COMMISSION THAT ONE IS NOT ENTITLED TO BE INDEMNIFIED AS PROVIDED IN THIS SECTION."

Sec. 8. Section 7 of Republic Act No. 10149 is hereby amended to read as

follows: "Sec. 7. Powers and Functions of the [Chairman] CHAIRPERSON. — The [management of the GCG shall be vested in the Chairman who] CHAIRPERSON shall have the following powers and duties: "(a) Preside over the meetings of the GCG; "(b) Direct and manage the day-to-day affairs and business of the GCG; "(c) DETERMINE [With the approval of the GCG, determine] the staffing pattern and the number of personnel of the GCG and define their duties and responsibilities; "(d) APPOINT, [With the approval of the GCG, to appoint, 1 remove, suspend, or otherwise discipline for cause, any DIRECTOR, OFFICER, OR employee of the GCG; and "(e) Perform such other duties as may be delegated or assigned to him/ HER by the GCG from time to time.

Sec. 9. Section 17 of Republic Act No. 10149 is hereby amended to read as

follows: "Sec. 17. Term of Office. - Any provision in the charters of each GOCC to the contrary notwithstanding, the term of office of each Appointive Director shall be for [one (1)] TWO (2) years, unless sooner removed for cause: Provided, however, That the Appointive Director shall continue to hold office until

the successor is appointed. An Appointive Director may be nominated by the GCG for reappointment by the President only if one obtains a performance score of above average or its equivalent or higher in the immediately preceding year of tenure as Appointive Director based on the performance criteria for Appointive Directors for the GOCC. "X XX."

Sec. 10. Section 23 of Republic Act No. 10149 is hereby amended to read as

follows: "Sec. 23. Limits to Compensation, per Diems, Allowances, and Incentives. - The charters of each of the GOCCs to the contrary notwithstanding, the compensation, per diems, allowances, and incentives of the members of the Board of Directors/Trustees of the GOCCs shall be determined by the GCG [using as a reference, among others, Executive Order No. 24 dated February 10, 2011]: Provided, however, That Directors/Trustees shall not be entitled to retirement benefits as such directors/trustees. SUCH COMPENSATION, PER DIEMS, ALLOWANCES, AND INCENTIVES MUST HAVE THE FOLLOWING CHARACTERISTICS: "(1) JUST AND EQUITABLE IN ACCORDANCE WITH THE PRINCIPLE OF EQUAL PAY FOR WORK OF EQUAL VALUE; "(2) GENERALLY COMPARABLE WITH THOSE IN THE PRIVATE SECTOR DOING COMPARABLE WORK IN ORDER TO ATTRACT, RETAIN, AND MOTIVATE A CORPS OF COMPETENT MEMBERS OF THE BOARD OF DIRECTORS/ TRUSTEES; "(3) PERFORMANCE-BASED WITH DUE CONSIDERATION TO INDIVIDUAL AND DEVELOPMENTAL, AND ORGANIZATIONAL, REGULATORY PERFORMANCE, WHERE APPLICABLE; AND

"(4) FAIR, REASONABLE, AND IN CONSIDERATION OF FISCAL REALITIES, SUCH AS THE AVAILABILITY OF FUNDS AND THE FINANCIAL CAPABILITY OF THE ORGANIZATION."

Sec. 11. A new Section denominated as Section 32 is hereby inserted, and the

subsequent sections consequently renumbered, to read as follows: "SEC. 32. PENALTIES. - ANY PERSON WHO WILLFULLY OBSTRUCTS OR HINDERS THE PROPER EXERCISE OF THE FUNCTIONS OF THE COMMISSION OR WILLFULLY MISLEADS OR ATTEMPTS TO MISLEAD THE COMMISSION OR ANY OF ITS OFFICERS IN REPLYING TO THEIR INQUIRIES SHALL BE IMPOSED A FINE OF NOT EXCEEDING FIFTY THOUSAND PESOS (P50,000.00). "LIKEWISE, ANY PERSON WHO, ACTUATED BY MALICE OR GROSS BAD FAITH, FILES A COMPLETELY UNWARRANTED OR FALSE COMPLAINT WITH THE COMMISSION SHALL BE IMPOSED A SIMILAR FINE NOT EXCEEDING FIFTY THOUSAND PESOS (P50,000.00)."

Sec. 12. A new Section denominated as Section 33 is hereby inserted, and the

subsequent sections consequently renumbered, to read as follows: "SEC. 33. REORGANIZATION. - TO ACHIEVE THE GOALS OF THIS ACT, CONSISTENT WITH THE CIVIL SERVICE LAWS, THE COMMISSION IS HEREBY AUTHORIZED TO PROVIDE FOR ITS REORGANIZATION, TO STREAMLINE ITS STRUCTURE AND OPERATIONS, UPGRADE ITS HUMAN RESOURCE COMPONENT, CREATE OR ABOLISH ORGANIZATIONAL DIVISION, UNITS OR BRANCHES, AND CREATE REGIONAL OFFICES."

Sec. 13. Separability Clause. - If any provision of this Act is declared

unconstitutional or invalid, the other provisions not otherwise affected shall remain in 3 full force and effect.

Sec. 14. Repealing Clause. - All laws, decrees, executive orders, rules and

regulations, and other issuances or parts thereof which are inconsistent with this Act are hereby repealed, amended, or modified accordingly.

Sec. 15. Effectivity. - This Act shall take effect fifteen (15) days after its

publication in the Official Gazette or in at least two (2) newspapers of general 9 circulation. Approved,