Plunder of PNCC Gratuity Fund (10)

IN the interest of FAIRNESS, and considering that this ANOMALY (which literally dwarfs those involving other government agencies/GOCCs, like the PAGCOR and PCSO) could be Ombudsman-bound after this series thereon, Rapidfire feels obliged to put in print the consolidated formal reply of the members of This Board to Chairman Butalid’s  letter, thus : …

5. xxx Philippine National Construction Corporation can be classified as an acquired asset corporation because it is under private ownership but its voting or outstanding shares were conveyed to the government in satisfaction of debts and by enunciated policy is required to be disposed of to private ownership within a specified period of time. By express provision of law, an acquired asset corporation shall not be considered as a government owned or controlled corporation.

6. In view of PNCC’s  peculiar status, all PNCC directors before were not appointed by the President of the Philippines, but were directly elected by the stockholders or,  in case of vacancy, by the remaining Board. Also, PNCC officers and  employees are not embraced by the Civil Service but belong to the  private sector. Thus, their labor and welfare rights are governed by the corporation’s Articles and By-Laws, the Corporation Code, the Labor Code, SSS Law and the pertinent Collective Bargaining Agreements (CBA’s) – PNCC’s work-force having been unionized.

Further, PNCC’s income and budget come from its own private corporate earnings and not from the General Appro-appropriation Act nor from the Bureau of Treasury.
7. xxx COA should have duly considered all the foregoing relevant facts and cir-circumstances that are accurately reflective of PNCC’s true corporate status in the audit of PNCC’s finances and operations.

Accordingly, the pertinent laws, rules, regulations and circulars cited or invoked by COA in the audit of the subject cash gratuity,  would definitely not apply to PNCC, as they are applicable only to regular government agencies and government corporations. (TO BE CONTINUED)

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