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2013 Annual Report the PCGG MANDATES

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2013 Annual Report the PCGG MANDATES Presidential Commission on Good Government 2013 Annual Report THE PCGG MANDATES The Presidential Commission on Good Government (PCGG) was created by President Corazon C. Aquino on 28 February 1986 through the issuance of Executive Order No. 1, s. 1986. This law, predating even the 1987 Philippine Constitution and recognized as the first official act under the Aquino administration, is the symbolic first step in the transition from Cover Story tyranny to democracy, and the institutionalization of the Filipino people’s aspiration for genuine democracy and desire for good government. After the EDSA People Power revolution in 1986, there was a The fact that the PCGG was created by President Corazon Aquino, in the exercise of resounding cry from a majority of Filipinos: “Never again!” The PCGG was entrusted with the mission of carrying out the enormous task her executive and legislative powers, puts it in a unique position. A rare confluence of of recovering ill-gotten wealth for the Republic. Throughout its 27- factors in Philippine politics – enabling environment conducive to change, political will, year existence, the PCGG has been subjected to criticisms relating and popular support – made its creation possible. The PCGG, a quasi-judicial agency, has to its apparent failure to deliver on its three-fold mandate as well three mandates: as its excesses. While there were those who performed their jobs with integrity and dedication, it is unfortunate that there were also The recovery of ill-gotten wealth accumulated by former President Ferdinand E. Marcos, instances of abuses, incompetence and corruption which tarnished 1. his family, relatives, subordinates and close associates, whether located in the Philippines the Commission’s image in the eyes of the Filipino people. To reverse or abroad, including the takeover or sequestration of all business enterprises and entities the slide and rekindle the passion that attended the PCGG’s creation, owned or controlled by them during his administration, directly or through nominees, the present leadership is seeking to re-infuse the organization with the influence, connection or relationship; EDSA spirit. This will be a recurring source of strength for the PCGG as it pushes forward to accomplish its unfinished task. The investigation of such cases of graft and corruption as the President may assign to the 2. Commission from time to time; and Contents The adoption of safeguards to ensure that the above practices shall not be repeated in 3. any manner under the new government, and the institution of adequate measures to > The PCGG Mandates prevent the occurrence of corruption. > 2013: Year in Review > Operations Highlights > Results of Performance of Sequestered/Surrendered Corporations, Corporations with Sequestered/Surrendered Shares, and Entities with Governmental Interest > The Commission Acknowledgement Cover photos: www.gelsantosrelos.typepad.com UCPB building photo: UCPB Monet’s painting: Reuters 2013 Annual Report Presidential Commission on Good Government Scholars: COCOFOUNDATION Presidential Commission on Good Government 2013 Annual Report 1 2013: YEAR IN REVIEW In all candor, some of these companies were Recoveries from 2010-2013 2013: YEAR IN REVIEW poorly managed in the past, which is one of vs. Total Recoveries the reasons for the decline in the PCGG’s our Presidential Commission on Good Government (PCGG) delivered credibility. We put a stop to this by making their 73.7 B management more responsible for the financial (2010-2013) yet another strong performance in 2013 as it continued to follow bottom-line and accountable to their public clients through and build on the reforms initiated three years ago. We aimed and stockholders. 92.5 B toY strengthen accountability in our operations and sharpen the agency’s (1986-2009) focus on its primary mandate of recovering public funds diverted for private Beneficiaries of the PCGG Recoveries gain by former President Ferdinand E. Marcos, his relatives and associates. Many Filipinos are either unaware or do not fully appreciate the social impact of the PCGG’s The institution had somehow lost its way and the Our remittance to the National Government work. Unbeknownst to them, the Commission public’s trust over the years, and needed to relive reached 631 million in 2013, exceeding our has provided substantial funding for the The proceeds of the redemption of the SMC the EDSA Spirit to regain the crusading zeal that target by 40 percent. This was accomplished by Comprehensive Agrarian Reform Program preferred shares, amounting to 71.6 billion characterized its creation 27 years ago. In fact, obtaining higher bids on the sale of recovered (CARP), one of the social justice measures of our including interests, have been earmarked for there have been persistent calls for its abolition. real estate, generating better returns and rental Constitution. the promotion and development of the coconut Faced with serious challenges to its credibility income from businesses and properties being industry and the uplifting of the conditions of and relevance, the present Commission instituted managed pending final disposition. Close to three-fourths of the P631 million we coconut farmers. in 2010 far-reaching organizational changes remitted to the Bureau of Treasury in 2013 or and formulated strategic thrusts to be pursued. These accomplishments put the PCGG on track P459 million went to CARP. The balance of P172 Such projects will improve not only the countryside We streamlined our structure and processes, to repeat as Best Agency in 2013, an honor it million was deposited to an escrow account since but also the entire economy given that 68 out weeding out the deadwood that had added layers received in 2012 for turning in the best performance the earnings came from assets that are still being of the 79 provinces are coconut-producing and of bureaucracy and stifled decision-making and against budget among the 11 attached agencies legally contested. an estimated 25 million Filipinos derive their action in the past. We beefed up our litigation, and offices of the Department of Justice (DOJ). livelihood from the industry. research and asset management teams with Since its inception, the PCGG has provided P87.2 young, idealistic but experienced professionals Last year’s remittance brought to 166.2 billion billion to CARP to finance rural electrification, the Also noteworthy is the fact that when the who shared our ideals and sense of urgency. the total returned by the PCGG to the national construction of farm-to-market infrastructures, Commission remitted to the Bureau to the coffers over the last 27 years. A substantial post-harvest facilities, school buildings and Treasury (BTr) the monies recovered from the How the 166.2 Billion portion or 73.7 billion represented recoveries potable water supply systems, the provision of Marcos Swiss accounts in January 2004, the were/will be spent made between 2010 and 2013. credit assistance and scholarship grants, and the amount of P10 billion was set aside to serve as conduct of extension and training services in the the principal fund for a compensation bill. Office of the President Coconut In 2013, we scored major legal victories that can countryside. (1997 – 2008) Industry lead to the recovery of more stolen public funds. In 2013, the PCGG welcomed the passage of As of the end of 2013, the Commission is still Some 500,000 farmers and their dependents the long-awaited compensation statute, known 4.4 B Others nursing approximately 15 billion of properties belonging to 5,053 rural organizations in 1,784 as the “Human Rights Victims Reparation and that are up for privatization and another 30 Agrarian Reform Communities are benefitting Recognition Act of 2013”. The Commission has 71.6 B 3.0 B billion to 50 billion in assets that are still tied up from these projects. been consistent in its support for the compensation 10.0 B in litigation. of the victims of human rights violations during In addition, the PCGG has transferred to the Martial Law because it is a direct and clear We also strengthened our oversight of Department of Agrarian Reform (DAR) a total acknowledgment of the Republic’s moral and legal 78.5 B sequestered and surrendered companies under of 3,057 hectares of agricultural land in Cavite, obligation to those who have suffered and those our stewardship, seeing to it that they either Laguna and Biliran, which were distributed to who, in the words of Rizal, “have fallen during the increase their revenues, cut their costs or reduce farmer- beneficiaries in these provinces. night.” Aside from the compensation features, Comprehensive Compensation their net losses at year end. Agrarian Reform for Human Program Rights Victims 2 2013 Annual Report Presidential Commission on Good Government Presidential Commission on Good Government 2013 Annual Report 3 2013: YEAR IN REVIEW 2013: YEAR IN REVIEW the Commission is also gratified by the various Also last year, we saw the criminal conviction of a Based on unaudited figures, the sequestered The financial health of these companies is critical mechanisms of remembrance in the law. We Marcos associate, who had long eluded the PCGG’s companies posted a combined net income of P4.0 because it enables Government to command a believe that memorializing and commemorating net. The New York State Court passed a guilty billion on total revenues of P26.8 billion in 2013. premium price when they are privatized. historical facts are crucial imperatives if we are verdict on Vilma H. Bautista, the social secretary of Except for a few, most of the sequestered to avoid past mistakes while seizing the renewed the former First Lady, after she was caught selling companies posted positive results. The stellar Continuing Challenge opportunities of the present for our posterity. a valuable painting belonging to the Philippine performers were COCOLIFE and UCPB-CIIF Government. The PCGG provided testimony at Finance and Development Corp., which both While PCGG had an excellent 2013, much All these will have a tremendous impact on our the trial in New York.
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