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2016 CORPORATE GOVERNANCE SCORECARD


I. STAKEHOLDER RELATIONSHIPS
Questionnaire Compliance
1. Does the GOCC disclose a policy that:
a. Stipulates the existence and scope of its effort to address customers welfare? a. Pag-IBIG Fund adheres to a policy addressing customer welfare in accordance with relevant laws and regulations such as :
b. Elaborates its efforts to interact with the communities in which they operate? b. Corporate Social Responsibility - Policy that elaborates Pag-IBIG Fund’s interaction with the communities in which it operate.
c. Ensure that its value chain is environmentally friendly or is consistent with promoting sustiainable development? c. Pag-IBIG Fund implements policy that promotes environment protection and sustainable development.
2. Does the GOCC disclose the activities that it has undertaken to implement the above-mentioned policies?
a. Customer health and safety a. Pag-IBIG Fund values its customers and has consistently espoused programs, activities and initiatives to ensure its health, safety, comfort and benefits.

  1. Pag-IBIG opened new branches to bring itself to people, providing easy access to services and reducing time spent for travel.
  2. Assistance during calamities
  3. Online access for loan details and customer service
  4. Rewards card Puregold
b. Interaction with the communities

b. At the heart of Pag-IBIG Fund's Mission is the consideration of service to its members grounded in integrity, sound financial principles and social responsibility, which the Fund maintains through its ISO Certification, COA Unqualified Opinion, and by winning the Gold Award for corporate governance from the Association of Development Financing Institutions in Asia and the Pacific (ADFIAP)

Pag-IBIG Fund also adopted its policy on corporate social responsibility.

Pag-IBIG Fund provides various communication channels for its members, to cater to their inquiries, suggestions and complaints.

The Pag-IBIG Website Contact Us page provides details on how the Fund may be reached:

Thru the Pag-IBIG Fund Hotline (+632) 8-724-4244 (8-Pag-IBIG)

Thru the Chat

Thru the Pag-IBIG Official Facebook Page

Thru the Pag-IBIG Official YouTube Channel

By sending a snailmail to the Member Relation Department or the concerned branch, filling in the email form on the page or sending an email directly to the Pag-IBIG Contact Center.

The Pag-IBIG Fund Directory of branches is also available to provide members with details on specific branches' adress and phone numbers.

c. Environmentally-friendly value chain c. Pag-IBIG Fund takes care of the environment through tree-planting activities and expansion of housing loan program to include the purchase and installation of solar panels. In relation to this, five (5) major accomplishments from July 2017 – May 2018 were included in a Report on Climate Change Adaptation, Mitigation and Disaster Risk Reduction (CCAM-DDR) for the President’s SONA.
3. Does the GOCC have a separate corporate social responsibility (CSR) report/section or sustainability report/section?
  Pag-IBIG Fund sponsors an annual mass wedding for its less-privileged members since 2011. Pag-IBIG also extends assistance to calamity stricken localities.
4. Where stakeholder interests are protected by law, stakeholders should have the opportunity to obtain effective redress for violation of their rights.
Does the GOCC provide contact details via the company’s website or Annual Report which stakeholders (e.g. customers, suppliers, general public, etc.) can use to voice their concerns and/or complaints for possible violation of their rights?

Pag-IBIG Fund provides various communication channels for its members, to cater to their inquiries, suggestions and complaints.

The Pag-IBIG Website Contact Us page provides details on how the Fund may be reached:

Thru the Pag-IBIG Fund Hotline (+632) 8-724-4244 (8-Pag-IBIG)

Thru the Chat Page

Thru the Pag-IBIG Official Facebook Page

Thru the Pag-IBIG Official YouTube Channel

By sending a snailmail to the Member Relation Department or the concerned branch, filling in the email form on the page or sending an email directly to the Pag-IBIG Contact Center.

The Pag-IBIG Fund Directory of branches is also available to provide members with details on specific branches' adress and phone numbers.

The Annual Report also contains the Pag-IBIG hotline number.
5. Performance enhancing mechanisms for employee participation should be permitted to develop.
a. Does the GOCC explicitly mention the health, safety and welfare policy for its employees? a. The Fund has been consistent in the dissemination of information about health and wellness of employees through the portal platform. Likewise, to ensure the safety of the employees, the Fund regularly issues email advisory on measures necessary for the protection of employees, e.g., flu outbreak, severe acute respiratory syndrome (SARS) or during calamities.
b. Does the GOCC publish data relating to health, safety and welfare of its employees? b. Pag-IBIG Fund promotes work-life balance through sporting events, chorale competition, fire drill, health-consciousness week, among others.
c. Does the GOCC have training and development programmes for its employees? c. Training and Development Programmes for Employees

d. Does the GOCC publish data on training and development programs for its employees? d.

6. Stakeholders including individual employee and their representative bodies, should be able to freely communicate their concerns about illegal or unethical practices to the board and their rights should not be compromised for doing this.

a. Does the GOCC have procedures for complaints by employees concerning illegal (including corruption) and unethical behavior?

a. Does the GOCC have procedures to protect an employee/person reveals illegal/unethical behavior from retaliation?

The Fund has a Grievance Machinery, a venue to lodge complaint by employees against the supervisors or co-employees. It is intended to simplify, speed up and install an effective, expeditious, fair, equitable and just grievance machinery in order to create an atmosphere conducive to good employee-supervisor relationship and boost employee's morale.

Whistle Blower Policy
II. DISCLOSURE AND TRANSPARENCY
Questionnaire Compliance
7. Quality of Annual Report
Does the GOCC's annual report disclose the following items:		 7. Pag-IBIG Fund Accomplishment Report
a. Corporate objectives a. Corporate objectives (p. 25)
b. Financial performance indicators b. Pag-IBIG Fund Annual Report 2016 (pp.6 to 9)
c. Non-financial performance indicators c. Pag-IBIG Fund Annual Report 2016 (pp.10 to 15)
d. Details of whistle-blowing policy d. Details of whistle-blowing policy (p. 29-30)
e. Biographical details (at least age, qualifications, date Reportof first appointment, relevant experience, and any other directorships of listed companies) of directors/commissioners e. Biographical details (at least age, qualifications, date Reportof first appointment, relevant experience, and any other directorships of listed companies) of directors/commissioners (p. 31-40)
f. Training and/or continuing education programme attended by each director/commissioner f. Training and/or continuing education programme attended by each director/commissioner
8. Are the Annual Reports downloadable from the GOCC's website? 8. Pag-IBIG Fund Annual Report 2016 (posted 06 September 2017)
9. Corporate Governance Confirmation Statement
Does the Annual Report contain a statement confirming the company's full compliance with the code of corporate governance and where there is non-compliance, identity and explain reasons for each such issue? Pag-IBIG Fund Annual Report 2016 (posted 06 September 2017)
10. Timely filing/release of annual/financial reports
a. Are the audited annual financial report/statement released within 60 days upon receipt from COA?

a. The Audited Financial Report /Statement was released and approved for posting by the Commission on Audit on 03 July 2017.

Pag-IBIG Fund posted the Audited Financial Statement on its Transparency page on the same day, 03 July 2017.
b. ls the annual report released within 90 days from release of audited financial report?

b. The Audited Financial Report /Statement was released and approved for posting by the Commission on Audit on 03 July 2017.

The Pag-IBIG Annual Report 2016 was uploaded in the website on 06 September 2017, 55 days after receipt of Audited Financial Statement.
c. ls the true and fairness/fair representation of the annual financial statement/reports affirmed by the board of directors/commissioners and/or the relevant officers of the company?

c. Statement of Managements Responsibility for Financial Statement
III. RESPONSIBILITIES OF THE BOARD
Questionnaire Compliance
11. Corporate Vision/Mission
a. Has the Board of Directors reviewed the vision and mission/strategy in the last financial year? a. The Pag-IBIG Board of Trustees has reviewed the Fund’s vision and mission / strategy during the deliberations on the 2016-2020 Corporate Plans and Targets 309th Board Meeting on 30 July 2015.
b. Does the Board of Directors monitor/oversee the implementation of the corporate strategy? b. The Board of Directors monitors/oversee the implementation of the corporate strategy as found on page 5 of the Manual of Corporate Governance
12. Did the GOCC achieve 90% in the PES? 12. Based on the preliminary scorecard submitted to GCG, Pag-IBIG Fund achieved 96.661% in the 2016 PES.
13. Code of ethics or conduct
a. Are the details of the code of ethics or conduct disclosed? a. Yes
b. Does the GOCC disclose that all Directors/Commissioners, senior management and employees are required to comply with the code? b. Yes. The Coverage of the Code of Ethics provides that:

“This Code shall apply to all Trustees, Officers and Employees of Pag-IBIG Fund including those on leave and those classified as probationary or casual employees and as far as practicable, to contractual employees regardless of any stipulation on the absence of an employer-employee relationship with the Fund (e.g., Contract of Service)”.
c. Does the company disclose how it implements and monitors compliance with the code of ethics or conduct? c. Yes. The Effectivity and Dissemination provision of the Code of Ethics provides the following:

“This Code of Conduct and Ethical Standards for Officers and Employees of the Home Development Mutual Fund shall take effect immediately upon the approval thereof by the Board of Trustees of Pag-IBIG Fund. The Human Resource Department shall ensure that the Code shall be available for all officers and employees of the Fund through the issuance and circulation of Office Memorandum and through the Fund’s portal or intranet.”
14. Does the Board appoint a Nomination and Compensation / Remuneration Committee? 14. Board Governance Committee has the same function as the Nomination Compensation / Remuneration.
15. Did the Nomination and Compensation/Remuneration Committee meet at least twice during the year? 15.
16. If yes, is the report of the Nomination and Compensation/Remuneration Committee publicly disclosed? 16. http://www.pagibigfund.gov.ph/corporategovernance.html
17. Does the Board appoint an Audit Committee? 17. http://www.pagibigfund.gov.ph/corporategovernance.html

 
18. lf yes, is the report of the Audit Committee publicly disclosed? 18. http://www.pagibigfund.gov.ph/governance/governance.html
19. Does at least one member of the Audit Committee have an audit, accounting or finance background (qualification or experience)?

19. Board Audit Committee Chairman Trustee Raul B. De Mesa graduated in college with a degree in Business Administration a post-graduate program for strategic business economics. His expertise includes commercial and investment banking.

Audit Committee Vice Chairman Trustee Edgardo G. Lacson finished a degree in BS Commerce, Major in Accounting and has worked professionally in various corporations, including the Philippine Stock Exchange where he was a Director.

20. Did the Audit Committee meet at least four times during the year? 20. http://www.pagibigfund.gov.ph/corporategovernance.html
21. Does the Board appoint a Risk Management Committee? 21. http://www.pagibigfund.gov.ph/corporategovernance.html
22. If yes, is the report on Risk Management Committee publicly disclosed? 22. Corporate Governance Page (43.2 C.)
23. Does at least one member of the Risk Management Committee have a background in finance and investments?

23. Investment Committee Chairman Trustee Raul B. De Mesa graduated in college with a degree in Business Administration a post-graduate program for strategic business economics. His expertise includes commercial and investment banking.

Committee Member Trustee Jesus Varela graduated with a bachelor's degree in Economics.

Committee Member Trustee Roberto B. Tan graduated with a bachelors and a masters degree in economics, as well as a masters degree in business administration. His expertise includes treasury management and international finance.
24. Board meetings and attendance
a. Are the Board of Directors meetings scheduled at the beginning of the year? (end of Q1 ) a. The Board of Trustees regularly meets once a month, pursuant to Part 3 Section 8 GCG MC 2012-07
b. Does the Board of Directors meet at least monthly?
c. Did the Board of Directors meet on at least 75% on their scheduled meetings?
d. Has each of the directors/commissioners attended at least 90% of all the board meetings held during the year?
e. Did the Board of Directors meet separately at least once during the year without the President/CEO present?
25. Access to information
a. Does the GOCC have a policy that stipulates board papers for Board of Directors/Commissioners meetings be provided to the Board at least three (3) working days in advance of the board meeting? a. Yes.
b. Is the Board Secretary trained in legal, accountancy or company secretarial Practices? b. The Corporate Secretary is a lawyer.
26. Internal Audit
a. Are the Board of Directors meetings scheduled at the beginning of the year? (end of Q1 ) Pag-IBIG Fund has an Internal Audit Office under Ms. Nelin P. Paraiso is the Pag-IBIG Fund Internal Auditor.
b. Does the appointment and removal of the internal auditor require the approval of the Audit Committee?
27. Risk Oversight
a. Does the company disclose the internal control procedures/risk management systems it has in place? a. Pag-IBIG Risk Management System
b. Does the Annual Report disclose that the Board of Directors/Commissioners has overseen a review of the company's material controls (including operational, financial and compliance controls) and risk management systems? b. Review of the Company’s material control by the Board of Trustees
c. Does the company disclose how key risks are managed? c. Financial Risk Management
d. Does the Annual Report contain a statement from the Board of Directors or Audit Committee commenting on the adequacy of the GOCC's internal controls/risk management systems? d. Pag-IBIG Fund Accomplishment Report (p. 26)
28. Do different persons assume the roles of Chairman and CEO? 28. Hon. VP Ma. Leonor G. Robredo is the Chairman of the Board and Atty. Darlene Marie B. Berberabe is the Chief Executive Officer.
29. Board of Directors Development
a. Does the GOCC have orientation programmes for new Directors? a. Newly-appointed Pag-IBIG Trustees are scheduled to undergo an Orientation / Program Briefing. Chairman Leoncio Evasco attended a briefing on 12 December 2016, a week after his appointment on 05 December 2016.
b. Does the GOCC have a policy that encourages Directors/Commissioners to attend ongoing or continuous professional education programmes? b. BGC Charter on orientation program for Directors
c. Did all Appointive Directors attend at least 1 training for the calendar year? c. Trainings Attended by the Members of the Board
30. Board Appraisal
a. Is an annual performance assessment conducted of the Board of Directors? a. The performance of the Board of Trustees is evaluated annually by the GCG in accordance with Memorandum Circular No. 2014-03.
b. Does the GOCC disclose the process followed in conducting the Board assessment? b. The process followed in the assessment of Board performance is as provided in Section 3 of Memorandum Circular No. 2014-03.
c. Does the GOCC disclose the criteria used in the Board assessment? c. The criteria used in the performance assessment is as provided in Self-Appraisal and Peer-Appraisal forms.
31. Committee Appraisall
a. Is an annual performance assessment conducted of the Board of Directors Committees?  
BONUS
Questionnaire Compliance
STAKEHOLDER RELATIONSHIPS
1. Does the GOCC practice Global Reporting lndex (GRl) on its annual reports?  
DISCLOSURE AND TRANSPARENCY
2. Quality of Annual Report
  • Are the audited annual financial report/statement released within 30 days upon the receipt from COA?
 2. Yes
PENALTY
Questionnaire Compliance
RESPONSIBILITIES OF THE BOARD
1. Are there members of the Board of Directors who hold more than five (5) positions in GOCCs and PLCs? 1. No BOD member holding more than 5 positions in GOCCs and PLCs was disclosed
2. ls there non-compliance with Good Governance Conditions? 2. No condition was marked as non-compliant