Relationship of government-owned or controlled to the Department

Government-owned or controlled corporation

- Agency organized as a stock or non-stock corporation

- Vested with functions relating to public needs whether governmental or proprietary in nature.
o GOCC’s may perform governmental or proprietary functions or both, depending on the
purpose for which they have been created.
o If the purpose is to obtain special corporate benefits or earn pecuniary profit, the
function is proprietary. (Powers classified as proprietary are those intended for private
advantage and benefit.)
o If it is in the interest of health, safety, and or for the advancement of public good and
welfare, affecting the public in general, the function is governmental.
1. May be categorized by the Department of Budget and Management, Civil service commission
and Commission on Audit
o For purposes of the exercise and discharge of their respective powers, functions and
responsibilities.
2. They shall attach to the appropriate department which they have allied functions
a. For policy and program coordination and for general supervision.
3. In order to fully protect the interest of the government in GOCC, at least one third (1/3) of the
members of the Boards of such corporation should either be a secretary, or undersecretary, or
Assistant Secretary.
a. Why?

Note: During their tenure, the President, the Vice-President, members of the Cabinet, and their deputies
and assistants are prohibited, unless otherwise provided in the Constitution itself, from holding any
other office or employment.

- Why? Because They shall strictly avoid conflict of interest in the conduct of their office.

 The State recognizes the potential of government-owned or -controlled corporations (GOCCs) as

significant tools for economic development. It is thus the policy of the State to actively exercise
its ownership. rights in GOCCs and to promote growth by ensuring that operations are consistent
with national development policies and programs.
 The operations of GOCCs are rationalized and monitored centrally in order that government
assets and resources are used efficiently and the government exposure to all forms of abilities
including subsidies is warranted and incurred through prudent means.
 The governance of GOCCs is carried out in a transparent, responsible and accountable manner
and with the utmost degree of professionalism and effectiveness

GOVERNMENT OWNED OR CONTROLLED CORPORATION - It refers to any agency organized as a stock or

non-stock corporation, vested with functions relating to public needs whether governmental or
proprietary in nature, and owned by the Government directly or through its instrumentalities either
wholly, or, where applicable as in the case of stock corporations, to the extent of at least fifty-one (51)
per cent of its capital stock.
 GOCC’s:
- Organized as stock or nonstock corporation
- Created by law or under Corporation Code
- Public character of its function
- Government directly or indirectly owns or controls at least a majority or 51% share of the
capital stock
- Created for common good and must be economically viable

GOCC’s in the Philippines:

- Social Security System : the State shall endeavor to extend social security protection to
workers and their beneficiaries.
- Philippine Ports Authority
- Metropolitan Waterworks and Sewerage System
- Government Service Insurance System

Administrative Law - Administrative law governs how government agencies are established as well as
the policies, procedures, rules, and regulations under which the agency operates.

Administrative Relationship
- Areas: policies, rules, actions, operations, budget, decisions, day-to-day, policy and program
coordination

Chartered institution - refers to any agency organized or operating under a special charter, and vested
by law with functions relating to specific constitutional policies or objectives. This term includes the
state universities and colleges and the monetary authority of the State.

Relationship of regulatory agencies to the Department

Regulatory agencies

- It refers to any agency expressly vested with jurisdiction to regulate, administer or adjudicate
matters affecting substantial rights and interests of private persons, the principal powers of
which are exercised by a collective body, such as a commission, board or council.
1. Shall be subject to the administrative supervision of the department under which they are
placed
2. Head of regulatory agencies shall submit annually their budgets and workplans
3. May avail themselves of the common auxiliary and management services of the department as
may be convenient and economical for their operations.

Regulatory agencies

- implement and enforce laws enacted by legislatures. They implement laws by the regulation
making process. Enforcement involves the monitoring and investigation of businesses for
compliance
- a common name for an agency that has been delegated authority by Congress to issue rules or
regulations.
DEPARTMENT - It refers to an executive department created by law. It includes any instrumentality, as
having or assigned the rank of a department, regardless of its name or designation.

Note: The regulations and rules imposed by government agencies to ensure that public administration
functions effectively and fairly

Mandates of the Different Departments:

1. Department of Foreign Affairs. - It shall be the lead agency that shall advise and assist the
President in planning, organizing, directing and evaluating the total national effort in the field of
foreign relations.
o Enrique Manalo since July 1, 2022

2. Department of Finance. — It shall be responsible for the formulation, institutionalization, and

administration of fiscal policies in coordination with other concerned subdivisions, agencies and
instrumentalities of government.

o Benjamin Diokno since June 30, 2022

3. Department of Justice. — It shall carry out the declared policy to provide the government with a
principal law agency which shall be both its legal counsel and prosecution arm.
o Jesus Crispin Remulla since June 30, 2022

4. Department of Agriculture. - It shall be the government agency responsible for the promotion of
agricultural development by providing the policy framework, public investments, and support
services needed for domestic and export-oriented business enterprises.

o Ferdinand Romualdez Marcos Jr. since June 30, 2022

5. Department of Public Works and Highways. — It shall be the State's engineering and
construction arm and is tasked to carry out the policy to continuously develop its technology, for
the purposes of ensuring the safety of all infrastructure facilities and securing for all public works
and highways the highest efficiency and the most appropriate quality in construction.
o Manuel Bonoan since June 30, 2022

6. Department of Education. — It shall be primarily responsible for the formulation, planning,

implementation and coordination of the policies, plans, programs and projects in the areas of
formal and non-formal basic education. It supervises all elementary and secondary education
institutions, including alternative learning systems, both public and private; and provides for the
establishment and maintenance of a complete, adequate, and integrated system of basic
education relevant to the goals of national development.

o Sara Z. Duterte since June 30, 2022

7. Commission on Higher Education. — It shall be the key leader of the Philippine Higher Education
System in putting education as the central strategy for investing in the Filipino people, reducing
poverty, and building national competitiveness. It shall:
a. Promote relevant and quality higher education i.e. higher education institutions and
programs are at par with international standards and graduates and professionals
are highly competent and recognized in the international arena);
b. Ensure that quality higher education is accessible to all who seek it particularly those
who may not be able to afford it;
c. Guarantee and protect academic freedom for continuing intellectual growth,
advancement of learning and research, development of responsible and effective
leadership, education of high-level professionals, and enrichment of historical and
cultural heritages; and
d. Commit to moral ascendancy that eradicates corrupt practices, institutionalizes
transparency and accountability and encourages participatory governance in the
Commission and the sub-sector.

8. Department of Labor and Employment. - It shall be the primary policy-making, programming,

coordinating and administrative entity of the Executive Branch of the government in the field of
labor and employment. It shall assume primary responsibilities, for:
a. The promotion of gainful employment opportunities and the optimization of the
development and utilization of the country's manpower resources;
b. The advancement of worker's welfare by providing for just and humane working
conditions and terms of employment; and
c. The maintenance of industrial peace by promoting harmonious, equitable, and
stable employment relations that assure equal protection for the rights of all
concerned parties.
o Bienvenido Laguesma since June 30, 2022

9. Department of National Defense. — It shall carry out the declared policy to maximize its
effectiveness for guarding against external and internal threats to national peace and security,
and provide support for social and economic development.
o Carlito Galvez Jr. since January 9, 2023

10. Department of Health. — It shall be primarily responsible for the formulation, planning,
implementation, and coordination of policies and programs in the field of health. Its primary
function is the promotion, protection, preservation or restoration of the health of the people
through the provision and delivery of health services and through the regulation and
encouragement of providers of health goods and services.

o Maria Rosario Vergeire (OIC) since July 14, 2022

11. Department of Trade and Industry. — It shall be the primary coordinative, promotive, facilitative
and regulatory arm of the Executive Branch of government in the area of trade, industry and
investments.
 o Alfredo E. Pascual since June 30, 2022

12. Department of Agrarian Reform. - It shall provide central direction and coordination to the
national agrarian reform program extended to transform farm lessees and farm tenants into
owner-cultivators of economic family-size farms to improve their living conditions.

13. Department of Interior and Local Government. - It shall assist the President in the exercise of
general supervision over local governments and in ensuring autonomy, decentralization and
community empowerment.

o Benjamin Abalos Jr. since June 30, 2022

14. Department of Tourism. — It shall be the primary planning, programming, coordinating,

implementing, and regulatory government agency responsible for development and promotion
of the tourism industry, both domestic and international, in coordination with attached agencies
and other government instrumentalities. It shall instill in the Filipino the industry's fundamental
importance in the generation of employment, investment and foreign exchange.
o Christina Frasco since June 30, 2022

15. Department of Environment and Natural Resources. — It shall be primarily responsible for the
implementation of the policy to ensure for the benefit of the Filipino people, the full exploration
and development as well as the judicious disposition, utilization, management, renewal and
conservation of the country's natural resources, consistent with the necessity of maintaining a
sound ecological balance and protecting and enhancing the quality of the environment and the
objective of making the exploration, development and utilization of such natural resources
equitably accessible to the different segments of the present as well as future generations.

o Maria Antonia YuloLoyzaga since July 12, 2022

16. Department of Transportation and Communications. - It shall be the primary policy, planning,
programming, coordinating, implementing and regulating and administrative entity of the
Executive Branch of the government in the promotion, development, and regulation of
dependable and coordinated networks of transportation and communications systems as well as
in the fast, safe, efficient and reliable postal, transportation and communications services.
o Transportation: Jaime Bautista since June 30, 2022
o Communication: Ivan John Uy since June 30, 2022

17. Department of Social Welfare and Development. - It shall provide a balanced approach to
welfare whereby the needs and interests of the population are addressed not only at the
outbreak of crisis but more importantly at the stage which would inexorably lead to such crisis.
Following such strategy, the Department's objectives shall be to:
a. Care for, protect and rehabilitate the physically and mentally handicapped and
socially disabled constituents, for effective social functioning;
 b. Provide an integrated welfare package to its constituents on the basis of their needs
and coordinate the service facilities required from such departments or agencies,
governmental and non-governmental, which can best provide them;
c. Arrest the further deterioration of the socially disabling or dehumanizing conditions
of the disadvantaged segment of the population at the community level; and
d. Advocate for policies and measures addressing social welfare concerns.
o Eduardo Punay (OIC)

18. Department of Budget and Management. — It shall be responsible for the formulation and
implementation of the National Budget with the goal of attaining our national socioeconomic
plans and objectives and for the efficient and sound utilization of government funds and
revenues to effectively achieve our country's development objectives.
o Amenah Pangandaman since June 30, 2022

19. Department of Science and Technology. - It shall provide central direction, leadership and
coordination of scientific and technological efforts and ensure that the results therefrom are
geared and utilized in areas of maximum economic and social benefits for the people.

It shall formulate and implement policies, plans, programs, and projects for the development of
science and technology and for the promotion of scientific and technological activities for both
the public and private sectors and ensure that the results of scientific and technological activities
are properly applied and utilized to accelerate economic and social development.
o Renato Solidum Jr. since July 22, 2022

20. Department of Energy. - It shall prepare, integrate, coordinate, supervise and control all plans,
programs, projects, and activities of the Government relative to energy exploration,
development, distribution, and conservation, with the end in view of ultimately achieving self-
reliance in the country's energy and power requirements without sacrificing ecological concerns.
o Raphael P. M. Lotilla since July 11, 2022

21. National Economic and Development Authority. — It shall primarily be responsible for
formulating continuing, coordinated and fully integrated social and economic policies, plans and
programs. It shall be responsible for coordinating the formulation of continuing and integrated
socio-economic development plans, policies and programs, including the formulation of annual
and medium-term public investment programs, programming of official development assistance
in the form of grants and concessional loans from foreign governments and multilateral agencies
and organizations, and the monitoring and evaluation of plan implementation.

Summary:

- The State recognizes the potential of government-owned or -controlled corporations (GOCCs) as

significant tools for economic development.
- Regulatory agencies implement and enforce laws enacted by legislatures.
- Different departments are responsible for implementing government policies and regulating
rules and regulations according to their functions.