Advantages/Disadvantages of a National Gov't Agency (NGA): OWWA

OVERSEAS WORKERS WELFARE ADMINISTRATION   ADVANTAGES/DISADVANTAGES OF A NATIONAL GOVERNMENT AGENCY (NGA):   Advantages –   Government Subsidy – A national government agency can receive appropriations from the national government unlike a GOCC which, under the declared policy of the incumbent Aquino Administration, will go through a rigorous process – like a camel passing through the eye of a needle – before receiving a subsidy from the national government, especially if the said GOCC is an "Income Center" like the OWWA (if OWWA is indeed a GOCC).  The OWWA charter, if one is enacted into law by Congress, does not even have to have a provision therein that OWWA shall receive appropriations from the national government.  It is automatic or incumbent for all national government agencies to be "qualified" or "entitled" to receive appropriations from the national government.   Protection From The Possibility Of Immediate Privatization – A national government agency is assured that it will not be privatized very easily.  A national government agency needs to be converted first into a GOCC before it can be privatized unlike a GOCC which can easily be privatized anytime especially under the new law on GOCCs (RA 10149 or the "GOCC Governance Act of 2011″).  There is no guarantee that OWWA, if it is classified as a GOCC, will not be privatized by this Administration or any President in the future.   Section 5-l of RA 10149 states that the GCG shall "Review the functions of each of the GOCCs and, upon determination that there is a conflict between the regulatory and commercial functions of a GOCC, recommend to the President in consultation with the Government Agency to which such GOCC is attached, the privatization of the GOCC's commercial operations, or the transfer of the regulatory functions to the appropriate government agency, or such other plan of action to ensure that the commercial functions of the GOCC do not conflict with such regulatory functions."  Under this section of the said law, it is not unlikely that OWWA will be privatized in the future since insurance, on-site services, benefits, granting of loans and guarantee of repatriation of its members – among other functions of OWWA – are "commercial" and not "regulatory" in character.  It can be easily claimed that "there is a conflict between the regulatory and commercial functions" of OWWA in order to justify the "commercial" functions/activities of OWWA.   3.      OWWA Funds Will Continue To Belong To OFWs And Not To The Government – A national government agency which is a trustee of a fund belonging to the overseas Filipino workers (OFWs) like the OWWA can ensure that the said fund will always belong to the OFWs unlike a GOCC which the law presumes to be owned by the government, including all the GOCC's assets and funds.  SEC. 2. of RA 10149 states that "The State recognizes the potential of government-owned or -controlled corporations (GOCCs) as significant tools for economic development. It is thus the policy of the State to actively exercise its ownership rights in GOCCs and to promote growth by ensuring that operations are consistent with national development policies and programs." (Emphasis supplied)   Likewise, Section 5 (c) of RA 10149 states that the newly-created Governance Commission for Government-Owned or -Controlled Corporations (GCG) shall "In consultation with the relevant government agencies and stakeholders, adopt within one hundred eighty (180) days from its constitution, an ownership and operations manual and the government corporate standards governing GOCCs x x x". (Emphasis supplied)   If OWWA is a GOCC, the private fund it is now holding in trust, which belongs to its OFW-members, will become a public fund owned by the State according to the above-quoted sections of RA 10149.  If OWWA is an NGA, the fund it is now holding in trust will remain as a private fund belonging to its OFW-members held merely in trust by OWWA.  A public fund can be privatized.  But how can you privatize a fund that is already private –  belonging to OFWs – and not belonging to the government?  Only something that is "public" can be privatized.   OWWA Will Be Solely Under The Supervision Of The DOLE – A national government agency will only directly report to the mother agency (DOLE, in the case of OWWA) to which it is attached while a GOCC will also have to report to the GCG (at the same time) which shall determine if a GOCC like OWWA (if it is indeed a GOCC) "should be reorganized, merged, streamlined, abolished or privatized" (Section 5-a of RA 10149).  Not only does a GOCC have to report to the GCG, since privatization is again mentioned here, and because the deficit of the national government today is quite big and there is a policy of downsizing government and getting government out of functions and activities that can be undertaken by the private sector, it is really not far-fetched to think that OWWA may be privatized by the incumbent Administration or by a future President whose main policy goal may be the privatization of all GOCCs.  We must be reminded that OWWA's functions and activities can be undertaken by the private sector.   The Selection Process In Appointing Board Members Shall Continue To Be Democratic As Provided by RA 10022 – Section 5-e of RA 10149 states that "In addition to the qualifications required under the individual charter of the GOCCs and in the bylaws of GOCCs. without original charters, the GCG shall identify necessary skills and qualifications required for Appointive Directors and recommend to the President a shortlist of suitable and qualified candidates for Appointive Directors." Likewise, Section 15 of RA 10149 states that "An Appointive Director shall be appointed by the President of the Philippines from a shortlist prepared by the GCG.  The GCG shall formulate its rules and criteria in the selection and nomination of prospective appointees and shall cause the creation of search committees to achieve the same. All nominees included in the list submitted by the GCG to the President shall meet the Fit and Proper Rule as defined un this Act and such other qualifications which the GCG may determine x x x."  Section 16 of RA 10149 also provides that "All members of the Board, the CEO and other officers of the GOCCs including appointive directors in subsidiaries and affiliate corporations shall be qualified by the Fit and Proper Rule to be determined by the GCG x x x."  In the case of OWWA (if it is classified as a GOCC), these provisions of RA 10149 will affect the selection process which RA 10022, or the law amending the Magna Carta of OFWs (RA 8042), instituted in order to make the said process more democratic and accessible to OFWs and NGOs.   Term Of Office – Seciton 17 of RA 10149 mandates that "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) year x x x."  The existing laws and the OWWA Omnibus Policies does not contain this one (1) year limitation on the term of office of OWWA directors precisely to allow a director to gain experience and benefit from the usual learning curve so that he/she can serve more effectively and ensure continuity in policies.  If OWWA is classified as a GOCC, the provision of Section 17 of RA 10149 shall prevail.   Stricter Regulation Of Salaries, Bonuses, Travels, Representation And Other Expenses and Transparency – A national government agency is under the strict audit of COA and not exempted from the Salary Standardization Law.  The bonuses, travels, representation expenses and other expenses of officers and employees of a national government agency are strictly monitored and regulated.  This will assure the OFW-members of OWWA that their fund will be judiciously, prudently and reasonably used/spent.  There is also more transparency requirements and standards regarding the said expenses in a national government agency than in a GOCC.   Disadvantage –   1.   There Is Less Flexibility – A national government agency, being a line-agency or attached agency in the Executive Department, has less flexibility than a GOCC.  However, this can be easily addressed if a "charter" is provided by law (Congress) to the said agency.  Congress, in the exercise of its enormous power to legislate (subject only to certain limitations prescribed by the Constitution), can actually create a new and unique entity which has the flexibility and almost all the advantages of a GOCC but which will be classified as a national government agency.     ADVANTAGES/DISADVANTAGES OF A GOCC:   Advantages –   Flexibility – By its very nature, a GOCC can exercise and does enjoy more flexibility than a national government agency.   The CEO Of A GOCC Shall Be Under More Accountability – Section 18 of RA 10149 states that "The CEO or the highest-ranking officer provided in the charters of the GOCCs, shall be elected annually by the members of the Board from among its ranks. The CEO shall be subject to the disciplinary powers of the Board and may be removed by the Board for cause."   The Transparency In A GOCC Now Approximates That Of A National Government Agency – Section 25 of RA 10149 mandates that "All GOCCs shall maintain a website and post therein for unrestricted public access" financial reports, including travel, representation and other expenses of directors and officers, and its corporate operating budget, among others.   Disadvantages –   1.   The advantages of a national government agency stated above already spells out the disadvantages of a GOCC, especially as it relates to OWWA. __._,_.___ . _