Palace confident EO on PCGG will stand legal scrutiny

Malacañang expressed confidence Wednesday that President Benigno Aquino III’s newest order giving the Presidential Commission on Good Government (PCGG) provisional authority to replace directors in sequestered or surrendered corporations will stand legal scrutiny. “What we are seeking to prevent is the paralysis of the operations of the corporations while, on the other hand, we want to make sure that the government is properly represented," said deputy presidential spokesperson Abigail Valte at a press briefing. Asked if all the directors in a holdover capacity will be replaced, she said some may be retained. “From my reading . . . being a director in a holdover capacity does not automatically bar you from being nominated as the temporary holder of the position," she said. Valte failed to give the exact number of the directors who will be affected by Executive Order 42, signed last May 9, but said half of the positions are still vacant. “From what I’ve been told, we still have about half of the number that are unfilled. So we are working to fill those positions as soon as possible," she said. Under EO 42, PCGG chairman Andres Bautista should give the President, through Executive Secretary Pacquito Ochoa Jr., a list of those who will be designated in a temporary capacity in order to represent the government’s interest in the said corporations. He has until December 31, 2011 to name the replacements. Asked if there will be Liberal Party members who would be named in any of the sequestered corporations, Valte said she is not aware yet of any names being groomed for such positions. “From what I understand, the chairman will give the list to the Executive Secretary. When and until that list reaches him, we really can’t say," she said. Those who will be nominated to the posts will be required to submit to the PCGG monthly reports or as often as may be required, on the affairs, developments and transactions affecting the respective corporations. The PCGG shall, from time to time, submit a detailed summary of these reports to President Aquino. A number of nominee-directors presently occupying various positions in sequestered or surrendered corporations are in a holdover capacity from the previous administration. PCGG is mandated to oversee the management of shares and sequestered or surrendered corporations through the supervision of nominee-directors to the said corporations. — KBK, GMA News