The Presidential Commission on Good Government (PCGG) has been directed to replace all holdover nominees in sequestered or surrendered corporations under Executive Order No. 42 issued by President Benigno Aquino III to protect the interest of the government.
Executive Secretary Paquito N. Ochoa Jr. said on Tuesday that under the President’s directive, the provisional authority granted to the PCGG to select interim replacements is valid only until December 31, 2011, unless extended by the Chief Executive.
“The President deemed it important to safeguard the interest of the country and the Filipino people in government-sequestered companies while at the same time institute measures to ensure that the operations in these companies are not disrupted. Granting the PCGG the power to appoint nominee-directors in an interim basis allows us to balance these two objectives,” Ochoa explained.
Under EO 42 signed by the President on May 9, the provisional authority shall be exercised by the PCGG chairperson, who will name provisional nominees to positions occupied by directors in holdover capacity from the previous administration, pending permanent appointment by the President.
The PCGG can replace these nominee-directors in sequestered or surrendered corporations with up to two members of the commission on interim basis, the executive order states.
According to Ochoa, the PCGG must submit a list of temporary nominees who will replace holdover directors in various government-sequestered companies to the President through the Office of the Executive Secretary.
All nominee-directors, Ochoa said, are directed to submit to the PCGG monthly reports, or as may be required, on the affairs, developments and transactions affecting the respective corporations. Subsequently, the PCGG must periodically turn in a detailed summary of these reports to the President.
EO 42 takes effect immediately upon its publication in a national newspaper of general circulation. ##