Classifying the Philippine International Convention Center, Inc. (PICCI)

a HE0I:I.':::I SOPY

C)[frcr of tltc ]JmstD lt 0f tltc l]llhpt] lrs

GOVERNANCE COMMISSIONI()R(;()VI RNt NI ()lVNtI)()R(()NI R()lII D( ()RP()MTI(IN\Ro(lr 479, alii tl8l faaldlf,tg Cotpod, fffi, Pit h€! lqE

13 September 2012

ATTY. RENATO B. PADILLAGeneral nanagerTUS. TERESAT. TANGILASenior Ex*u ve AsrisraatPHILIPPIilE INTERNANONAL CONVEI{TION CEilTER, INC.CCP Complex, Roxas Blvd.Pasay City, Metro Manila

Re: GGG t.O. lto. zl.124g Elq-uDtr{c HCdlFRon THE CoVERAGE oF R.A No. IOI49

Dear Afty. Padilla and Ms. Mangila,

We write to iniorm you of the issuan@ of Gre i/hmorandum Order (M.O.) No.2012-09, regarding the Exclusion of the PHuppo.E lrrERNAno AL CoNvErfioCeurea, lNc. (PlCCl) from the coverage of Republic Act (R.A.) No. 10149.

Ms. Teresa T. Mangila, previously wrote a letter addressed to Atty. Melissa R.Encanto, GCG Chief of Stafi, which was received by the Commission on 10 May2012 lAnnex Al, asking for confirmation ftom GCG regarding the dassification ofPlCCl, as an excluded entity from the coverage of R.A. No. 10149 as indicated inAnnex ?' of the 2011 Report of the GCG as of 8 May 2012. ln the same letter, Ms.MarEila also requested for advice whether Annex 'A' is the latest and finalclassification list to be issued by GCG.

ln reply thereto, cCG wrote a letter, dated 24 May 2012 lAnnex Bl, whichstated that since the Bangko Senbal ng Pilipinas (BSP) is excluded ftom thecoverage of R.A. No. 10149, then as a wholly-owned subsidiary of BSp, plCCl isalso excluded from he coverage of the law. Therefore, in deference to the BSp,GCG resotues to dassify PICCI in Annex 'A' as a 'GOCC excluded ftom thecoverage of RA No. '10149' as herein provided in the GCG M.O. No. 2012-09,subject however to any cfrange in the circumstances of PlCCl, whicfr may bring itwithin the coverage of R.A. No. 10't49.

We now transmit to you a copy of M.O. No. 2012{9 to formally inform you ofthe issuance of the same.

of the Secretaty-tiSNl

... ::

I/-*

/*6'fi[

: -_:_-

\{

ivI{}?

i{!

[f

Off ice

RI

FiNA I'.JC f

sEP I g 20u

SEP 19 2912

CTRL No.

'_!.r.1

nrrrjFlRs 2ol2 Jll i

ru ufily

Very truly yours,

BY AUTHoRITY OF THE COMMISSION

I

/-'n ,-..-/MA. AIqGEUA E. IGNACIO

lcomfrissioner

GZ---RAINIER B. BUTALID

Commissioner

Exscutive Secretary PAQUITO N. OCHOA, JR.DOF Secrstary CESAR V, PURISIMADBM Secretary FLORENCIO B. ABADBSP Governor AMANDO M. TETANGCO, JR.

Chairman

ANNEX A

Attention: Atty. Melissa R. EncantoChief of Staff, Office ofthe ChairmanGovernance Commission for GOCCs (GCG)

Dear Atty. Encanto:

We obtained information from the GCG website (document: CLASSIFICATION OFGOCCs BY SECTORS CLASSIFICATION OF GOCCs BY SECTORS as ofMay 8,2012) that the Philippine International Convention Center is excluded from the coverageof Republic Act 10149. May we know if this is GCG's latest and final list? Also, may weknow if the Commission will be giving us offrcial advice on the matter?

We hope to get a reply from you so that we will be able to inform the PICC Board ofDirectors ofthe exclusion in its next scheduled meeting this month.

Our contact details:1. Our General Manager Atty. Renato B. Padilla

General ManagerPhilippine Intemational Convention CenterTel. No. 7894701e-mail : [email protected]

2. The undersigned Teresa T. MangilaSenior Executive AssistantOffice ofthe General Manager, PICCTel No. 7894712

Thank you very much.

From,

Teresa Mangila

P.S: Our former General Manager, Atty. Araceli Villanueva advised me to get in touchwith you. She said that you might be able to help us. She is a good friend and colleagueof your mother, Dr. Georgina Encanto and your late father. Again, thank you so much.

, 10 i '' '"')' ,;i

Us=

rlt[1tLr ul titr j-lili ritr llj {:ra t]it' j-)irilr;.rIrrir:

GOVERNANCE COMMISSIONI ( )li (i()\ l li\ \ll N l r)\\ \ l l l 0l( (_( )\ l ll./.ll l l l) ( ()lU,( )lt \l l( t\\

Annex B

Z4ffiay 2012

ATTY. RENATO B. PADILLAGeneral llanager

MS. TERESA T. UAilGILAS en i o r Exec ufrv e AssLstan fPHILIPPINE INTERNATIONAL CONVENTION CE}.ITER, INC. (PICCI)CCP Complex, Roxas Blvd.Pasay City, Metro Manila

Re: Exclustox oF plGGl FRor rHE Covenlcr or

Dear Atty. Padilla and Ms. Mangila,

We write in reply to the letter of Teresa T. Mangila, addressed to Atty.Melissa R. Encanto and received by the Commission on 10 May 2012, whichseeks confirmation from GCG regarding the classification of irl6gt, as anexcluded entity from the coverage of R.A. No. 1014g as indicated in Annex "A,of. the 2011 Report of the GCG as of 8 May 2012. plccl also requests foradvice whether Annex "A' is the latest and final ctassification list to be issuedby GCG.

Leqal Basis in Addressino the lssues Raised

section 5 of Repubtic Act No. 10149, otherwise known as the "GoccGovemance Act of 2017' (R.A. No. 1014g), in constituting the GCG as the"central advisory, monitoring, and oversight body with aut[ority to formulate,implement and coordinate policies" over the Gocc sectbr, has beenempowered to:

'(a) Evaluate the performance and determine the relevance ofthe GOCC, to ascertain whether such GOCC should bereorganized, merged, streamlined, abolished or privatized,in consultation with the department or agency to which aGOCC is attached;'l and

"(b) Classify GOCCs into: (1) Developmental/SocialCorporations; (2) proprietary Commercial Corporations; (3)Govemment Financial, lnvestment and rrust rnstitutions;

* nswithResuratorytilt'rtI

T:ll.il""wilh1o14e 1'"wMAY 2 9 ZOIZMAY 2 9 ZrltZ

ry

as may be classified by the GCG, without prejudice tofurther subclassifications in each category and/or anyother classiflcation based on parameters as it may flndrelevant or material such as, but not limited to, industrytype. x x x."2

It is pursuant to the foregoing mandates of the Commission that it hasissued Annex A covering the classiflcation of GOCCs according to sectors, butalso indicating GOCCs which are excluded from the coverage of R.A. No.10149.

We therefore will address first the second query contained in your letter ofwhether Annex A dated 08 May 2012 is the latest and flnal classification list lobe issued by GCG.

Nature of GCG's Annex A Classification

The Commission's Annex A Classification is but one of a number ofclassification listing that will be issued for the GOCC Sector. The signiflcance ofAnnex A is that it classifies GOCCs into sectors based on the tentative listingfound in Section 5(b) of R.A. No. 10149.

Annex A, however, also has a classification of GOCCs which are outsidethe coverage of R.A. No. 10149, but are found in the original one-hundred-fifty-eight (158) GOCCs listed with the Congress when they were considering thebills that eventually became R.A. No. 10149. The GCG believes that it is itsresponsibility to both the Executive Department and the Legislative Departmentto monitor all of the 'Original 158 GOCCs," including those which under the Acthave been expressly excluded from its coverage.

This listing of GOCCs by seclors found in Annex A is never a completedtask, and Annex A will periodically be updated, based on the following reasons:

(a) There are GOCCs that fall within the definition of "GOCCs"under R.A. No. 10149's which have not been included inthe Original 158 GOCCs, which must be included in AnnexA, such as the Girls Scout of the Philippines and theCorregidor Foundation, lnc.;

(b) There may be new GOCCs that would be incorporated bySupervising Agencies with the SEC, which would have tobe included in the listing; and

(c) There would be GOCCs turned over to the Commissionafter the winding down of the mandate of PresidentialCommission on Good Governance (PCGG);

(d) There may be corporations included in the Original 158GOCCs which by Supreme Court decisions will cease tofall within the definition of R.A. No. 10'149 of "GOCCs",such as in the case of RPN-9; or those where theGovernment's title to equity is resolved favorably by the

'?Sec.5(b), R.A. No. 10149.

Supreme Court, such as in the case of UCPB (where theSC decision is subject to a motion for reconsideration );

(e) Where upon determination by the Commission of thecharter and circumstances pertaining to an Original 158GOCC member, it turns out that it is excluded from thecoverage of R.A. No. 10149, such as in the case ofPHIVIDEC Industry Authority (PlA), which turned out to bean 'economic zone authority;" or

(f) When the corporate circumstances surrounding a listedGOCC in Annex A to cease to being withln the coverage ofR.A. No. 10149, such as when it has been privatized.

Therefore in direct answer to your query, Annex A dated 09 May 2012 isnot the final listing and it would not be subject to changes-that is the reasonwhy we issue Annex A for a particular date in order to ensure that both theGCG and the GOCC Sector has a reckoning point to determine whether the listtheir are looking at is the latest listing; and we always upload into our websitethe latest version of Annex A.

We submit for your reference the latest version of Annex A dated 17 May2012.

PICC's Current Classification as BeingExcluded from R.A. 10149 Coveraqe

Section 4 of R.A. No. 10149, as it provides for lhe "Coverage" of the Act,explicitly excludes the Bangko Sentral ng Pilipinas (BSP) from its coverage,th us:

SEC.4. Coverage. - This Act shall be applicable to allGOCCs, GICPS/GCEs, and government financialinstitutions, including their subsidiaries, but excludinq theBanoko Sentral no Pilipinas, state universities andcolleges, cooperatives, local water districts, economic zoneauthorities and research institutions: Provided, fhat ineconomic zone authorities and research institutions, thePresident shall appoint one{hird (1/3) of the board membersfrom the list submitted by the GCG.3

As the agency directly mandated to advise, monitor and oversee theGOCC Sector, with power to "formulate, implement and coordinate policies"under the Act, the Commission understood and appreciated the exclusion ofthe BSP from the coverage of R.A. No. 10149 was meant to apply to allaspects of the business, operations, functions, and management of the BSP.Part of the operations of BSP is the management and operations BSPsubsidiaries, whether partly or wholly owned, and BSP afflliates, up to theextent of BSP's ownership. Therefore, such exclusion from the coverage ofR.A. No. 10149 extends to the business, operations, functions, andmanagement of subsidiaries and affiliates of BSP, which includes both the

3 Emphasis supptiod.

Central Bank- Board of Liquidators and P|CCl, both of which are part of theOriginal 158 GOCCs.

PICCI being a wholly-owned subsidiary of BSP is therefore deemed partof the operations of BSP. The Commission felt is more prudent, as a matter ofpolicydetermination, to exclude PICCI from the coverage of R.A. No. 10149 inorder to ensure that GCG's policies, rules and regulations as they apply to theGOCC Sector covered by R.A. No. 10149, do not conflict with the manner andmeans by which the BSP shall manage and control PICCI as its wholly-ownedsubsidiary.

The current treatment of PlCCl, borne out of the strong deference that theCommission grants to the BSP, does not necessarily mean that it would be thefinal position of the GCG on the matter. lndeed, there may be developments inthe future that would change the policy status as to PlCCl, such as when PICCImay be transferred to another Supervising Agency, which would then bring itback within the coverage of R.A. No. 10149.

CESAR L. VILLANUEVAChairman

fu r n'z.t-. //nalmQELA E. rGNAcro

CommissionerR.AINER B. BUTALID

Commissioner

cc: SEc. CesnR V. Punrsrn,tnDEPARTMENT OF FINANCE

SEc. Fuonerucro B. AaeoDEPARTMENT OF BUDGET AND MANAGEMENT

Gov. Arr,rnnoo M. TgtnNcco, JR.BANGKO SENTRAL NG PILIPINAS

Very truly yours,

O[tlrl 0t th[ $r'rsrbrrrt 0( tl[ l]lltippi[rsGOVERNANCE COMMISSIONFOR COVT R},IT1tNT O\\'N IT' OR CONTROLLED CORPORTTTIONSRoom 479, Mabini H€ll, MalacaiarE Compound, Manib, Philippin€s 1005

MEMORANDUM ORDER NO. 2012-09

CLASSIFYING THE PHILIPPINE INTERNATIONAL CONVENTION CENTER,rNc. (Ptcct) AS EXGLUDED FROM THE COVERAGE OF REPUBL|C ACTNO. 10149

WHEREAS, the Philippine lnternational Convention Center, lnc. (PlCCl) wasorganized and incorporated by the Bangko Sentral ng Pilipinas (BSP), pursuant toPresidential Decree (PD) No.520 s.1974;

WHEREAS, PICCI is a stock GOCC registered in the Securities and ExchangeCommission and is a wholly-owned subsidiary of the BSP;

WHEREAS, Section 4 of Republic Act (R.A.) No. 10149 provides that thejurisdiction of the Governance Commission for GOCCs (GCG) shall cover "all GOCCs,GICPs/GCEs, and government financial institutions, including their subsidiaries, butexcluding the Bangko Sentral ng Pllipinas, state universities and colleges, cooperatives,local water districts, economic zone authorities and research institutions;"

WHEREAS, Section 5(a) of R.A. No. 10149 or the GOCC Governance Act of2011, empowers the GCG to "[E]valuate the performance and determine the relevanceof the GOCC, to ascertain whether such GOCC should be reorganized, merged,streamlined, abolished or privatized in consultation with the department or agency towhich a GOCC ls attached;"

WHEREAS, Section 5(b) of R.A. No. 10149, empowers the GCG to "ClassifyGOCCs into: (1) Developmental/Social Corporations; (2) Proprietary CommercialCorporations; (3) Government Financial, lnvestment and Trust lnstitutions; (4)Corporations with Regulatory Functions; and (5) Others as may be classified by theGCG, without prejudice to further subclassifications in each category and/or any otherclassification based on parameters as it may find relevant or material such as, but notlimited to, industry type. The classification shall guide the GCG in exercising its powersand functions as provided herein;"

NOW, BE IT -RESOLVED, that PICCI shall be classified as a GOCC excluded from the

coverage of RA No. 10149.

RESOLVED FURTHER, the above stated classification of PICCI shall be subjectto reclassification, pending any change in the situation and/or circumstances of the

corporation, such as when PICCI is transferred to another Supervising Agency, whichwould then bring it back within the coverage of R.A. No. 10149.

DONE, in the City of Manila, this 12th day of September in the year of our Lord,Two Thousand Twelve.

CESAR L. VILLANUEVAChairman

RAINIER B. BUTALIDCommissioner

a'1,.