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STATEMENT ON CORPORATE GOVERNANCE AND ACCOUNTABILITY IN GOVERNMENT-OWNED AND-CONTROLLED CORPORATIONS (GOCCs)

October 21, 2025


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The Institute of Corporate Directors (ICD), the Financial Executives Institute of the Philippines (FINEX),  the Institute for Solidarity in Asia (ISA), and the Justice Reform Initiative (JRI) express serious concerns over recent reports at the Government Service Insurance System (GSIS), which raise questions about corporate governance and accountability within this vital state-run pension fund.


The reported disputes between the GSIS President and General Manager (PGM) and members of the Board of Trustees (BOT) over significant investment decisions and the scope of executive authority are a serious matter. The conflict challenges the core principles of fiduciary duty, transparency, and oversight of the board, which are crucial for all Government-Owned or -Controlled Corporations (GOCCs) managing public funds.


The determination of the veracity of the allegations raised by the resigned trustees has been entrusted to the Ombudsman. Our foremost concern is that these internal disputes may erode confidence, thereby undermining trust in the fund’s stability—a cornerstone of the nation’s economic and social well-being.


Commitment to Stronger GOCC Governance


The GSIS situation is a critical opportunity to reinforce governance standards across all GOCCs. We strongly recommend that the following measures be instituted immediately:


  • Clear Reinforcement of Board Authority: The authority of the Board of Trustees in setting major policy and approving significant, high-risk, or non-standard investments must be unambiguous and paramount.


  • Enforceable Accountability: The dual accountability of GOCC executives—to the appointing power and to the Board—must be managed through clear, enforceable internal governance structures that prioritize fiduciary duties.


  • Strict Compliance and Transparency: All GOCCs must operate with the highest level of transparency in all financial and investment dealings. Protocols must be tightened to prevent any action that undermines board oversight.


  • Thorough and Impartial Resolution: We urge the GSIS leadership and relevant oversight bodies such as the Governance Commission for GOCCs to facilitate a comprehensive, impartial review to restore clarity regarding authority and accountability.


We stand for strong corporate governance. The sound, ethical, and transparent management of public funds by all GOCCs is non-negotiable for securing the nation's future and ensuring the trust of the Filipino people.


INSTITUTE OF CORPORATE DIRECTORS (ICD)


FINANCIAL EXECUTIVES INSTITUTE OF THE PHILIPPINES (FINEX)


INSTITUTE FOR SOLIDARITY IN ASIA (ISA)


JUSTICE REFORM INITIATIVE (JRI)







 
 
 

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