|I. STAKEHOLDER RELATIONSHIPS|
|1. Does the GOCC disclose a policy that:|
|a. Stipulates the existence and scope of its effort to address customers welfare?||a. Yes. Pag-IBIG Fund adheres to policies addressing customer welfare in accordance with relevant law and regulations.
|b. Elaborates its efforts to interact with the communities in which they operate?||b. Yes. As emphasized in Pag-IBIG Fund's Corporate Social Responsibility. Pag-IBIG Fund seeks to improve the quality of life of its members through the administration of the funds in trust for them, which shall be used exclusively for their benefit such as entitlement to dividends from their savings and, providing access to multi-purpose loans and housing loans. The Fund is committed in performing quality public service with diligence, transparency and accountability. Aside from its main programs on savings and loans, the Fund looks for other ways to help our members, like its “I Do, I Do” Program, Pag-IBIG Loyalty Card as well as disaster rehabilitation programs.|
|c. Ensure that its value chain is environmentally friendly or is consistent with promoting sustiainable development?||c. Yes. Pag-IBIG Fund promotes environment protection and sustainable development by requiring compliance with existing environmental, real estate and other applicable laws, rules and regulations.
|2. Does the GOCC disclose the activities that it has undertaken to implement the above-mentioned policies?|
|a. Customer health and safety||a. Yes. Pag-IBIG Fund invests in its customers' health and safety thru program and projects, as follows:
|b. Interaction with the communities||b. Pag-IBIG Fund devotes its time to assist and interact with Filipino communities.
|c. Environmentally-friendly value chain||c. Yes. Pag-IBIG Fund advocates environmental-friendly causes.
|3. Does the GOCC have a separate corporate social responsibility (CSR) report/section or sustainability report/section?|
|Yes. Included in Pag-IBIG Fund's Corporate Social Responsiblity are sponsoring the annual mass wedding for its less-privileged members, giving additional benefits/savings in the form of discounts on the purchase of priority/daily needs, and blood letting for the benefit of partner-institutions. -(pp.24/26/97 of the Annual Report)|
|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?||Yes. The general public can voice their concerns and/or complaints for possible violation of their rights using Pag-IBIG Fund's contact information listed in as follows:|
|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. Yes. To establish good relations with Pag-IBIG Fund’s Stakeholders, it is important to understand the nature of their interest in the operations and programs of the Fund. Among these Stakeholders are Pag-IBIG Fund Officers and employees who are entitled to the following:
|b. Does the GOCC publish data relating to health, safety and welfare of its employees?||b. Yes. A total number of 1,239 Pag-IBIG Fund employees and dependents received the influenza vaccination in 2017.
Also, hereunder are the data on statistics based on the 2017 Pag-IBIG Fund Sports/Wellness activities:
|c. Does the GOCC have training and development programmes for its employees?||c. Yes. There were 5,058 Pag-IBIG Fund employees who participated in eight different main kinds of training and development programmes in 2017.|
|d. Does the GOCC publish data on training and development programs for its employees?||d. The data on training and development programmes for Pag-IBIG Fund employees in 2017 are as follows:
|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?||Yes. Pag-IBIG Fund provides the procedures for complaints by employees concerning illegal (including corruption) and unethical behavior, as follows:
Form of Whistleblower Reports
The Committee may be contacted at:
|b. Does the GOCC have procedures to protect an employee/person reveals illegal/unethical behavior from retaliation?||Pag-IBIG Fund has procedures to protect an employee/person who reveals illegal/unethical behavior from retalition:
Protection of A Whistleblower Against Retaliation
|II. DISCLOSURE AND TRANSPARENCY|
|Questionnaire||Compliance||7. Quality of Annual Report
Does the GOCC's annual report disclose the following items:
|a. Corporate objectives||a. Yes. The Corporate Objectives were discussed on p.1 of the Annual Report
Also, the Performance Scorecard for 2017 was disclosed.
|b. Financial performance indicators||b. Yes. In 2017, Pag-IBIG Fund posted a Gross Income of P54.02 billion, higher by 9% from 2016. It was the first time for the agency to breach the P50-billion mark.
Net Income for the period reached P30.27 billion, equivalent to P5.26 billion or 21% growth compared with the P25.01 billion earned in 2016, while also surpassing the P25.13 billion target by 20%. It was also the first time for Pag-IBIG Fund to breach the P30-billion mark.
Total Assets stood at P488.74 billion, up from the 2016 year-end level of P439.30 billion. The P49.44 billion increase is primarily due to the growth of P21.39 billion in net Members’ Savings and generation of P30.27 billion Net Income.
|c. Non-financial performance indicators||c. Yes. In 2017, active Pag-IBIG Fund members numbered 13.577 million, with 959,075 working overseas.|
|d. Details of whistle-blowing policy||d. Yes. Pag-IBIG Fund has a Grievance Machinery, a venue to lodge complaint by employees against officers or co-employees. It is intended to simplify, speed up, and install an effective, expeditious, fair, equitable, and just grievance machinery to create an atmosphere conducive to good employee-supervisor relationship and boost employee's morale.
Pag-IBIG Fund has also implemented a Whistle-Blowing Policy, which enables concerned individuals to report and provide information on activities of Fund officers and employees that breach the standards and policies on good governance, public policy, and code of conduct for public servants. Communication channels are made available for whistleblowers, with their identities kept anonymous or confidential should they desire. Whistleblowers are also granted protection from retaliation due to his/her report.
|e. Biographical details (at least age, qualifications, date Reportof first appointment, relevant experience, and any other directorships of listed companies) of directors/commissioners||e. Yes. The biographical details (at least age, qualifications, date of first appointment, relevant experience, and any other directorships of listed companies) of directors/commissioners of Pag-IBIG Fund are indicated.(pg.98-103)|
|f. Training and/or continuing education programme attended by each director/commissioner||f. Yes. On the topic of Orientation and Continuing Education, all newly-appointed members of the Board are given special orientations regarding Pag-IBIG Fund’s operations. The CEO, together with the members of the ManCom, provide an update of the Fund’s operations, accomplishments, challenges, and initiatives, in keeping with the Fund’s mandates and objectives.
The new appointees also attended a seminar on corporate governance that oriented them on the provisions and guidelines on corporate governance for public management.
Aside from the standard orientation, Pag-IBIG Fund also allocates a budget for the continuing education of the Trustees.
|8. Are the Annual Reports downloadable from the GOCC's website?||8. Yes. The 2017 Annual Report is downloadable from the Pag-IBIG Fund's Official Website under the Transparency Seal and Corporate Governance .|
|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?||Yes. By virtue of of Republic Act No. 10149 (or the Government-Owned and Controlled Corporation Governance Act), GOCCs are considered as significant tools for economic development, and must therefore be held accountable to the fiscal and financial growth of the agency, for the benefit of its stakeholders. Pursuant to this, Pag-IBIG Fund, through its Board of Trustees has developed, adopted, and fully complied with the HDMF Manual of Corporate Governance. This ensures that the Fund’s operations are carried out in a transparent, responsible, and accountable manner, without sacrificing professionalism and efficiency. Likewise, the “Code of Conduct and Ethical Standards of Officers and Employees of the Home Development Mutual Fund (Pag-IBIG Fund)” has been approved for implementation. The code of conduct reinforces how Pag-IBIG Fund employees should behave and act in the delivery of their duties. To ensure implementation and information, officers and employees of Pag-IBIG Fund were given a rundown of the existing policies, and a copy of the manual was made available for viewing and download in the corporate portal. New hires of Pag-IBIG Fund will also be apprised of the code during orientation programs.|
|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. Yes. The Audited Financial Report/Statement was released and approved for posting by the Commission on Audit on 13 July 2018.
Pag-IBIG Fund posted the Audited Financial Statement on the Transparency and Corporate Governance Pages of its Offical Website after three days, 16 July 2018
|b. ls the annual report released within 90 days from release of audited financial report?||b. Yes. Pag-IBIG Fund posted the Audited Financial Statement on its Official Website on 16 July 2018. The Pag-IBIG Fund Annual Report was posted on the website on 10 October 2018 (87 days)|
|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?||This is stated in the Statement of Management's Responsibility for Financial Statements and Independent Auditor's Report.|
|III. RESPONSIBILITIES OF THE BOARD|
|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 2017-2021/22 Corporate Plans and Targets 318th Board Meeting on 28 June 2016.|
|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. Yes. Pag-IBIG Fund got a PES score of 99.152% in 2017|
|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. Yes. The 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. Yes.|
|16. If yes, is the report of the Nomination and Compensation/Remuneration Committee publicly disclosed?||16. Yes.|
|17. Does the Board appoint an Audit Committee?||17. Yes.|
|18. lf yes, is the report of the Audit Committee publicly disclosed?||18. Yes.|
|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 Pedrito G. Angeles graduated from Ateneo de Davao College with a Bachelor’s Degree in Banking and Finance, and pursued law for further studies in Ateneo de Davao Law School. His expertise includes commercial banking.
Board Audit Committee Member Trustee Ma. Lorelei C. Fajardo completed a Bachelor’s Degree in Business Administration from Miriam College. She pursued further studies in the New York Institute of Finance, with a Certificate on Finance Management and Certificate on Options Market. She also completed a Certificate on 21st Century Management with the New York University in the USA.
|20. Did the Audit Committee meet at least four times during the year?||20. Yes.|
|21. Does the Board appoint a Risk Management Committee?||21. Yes.|
|22. If yes, is the report on Risk Management Committee publicly disclosed?||22. Yes.|
|23. Does at least one member of the Risk Management Committee have a background in finance and investments?||23.Board Risk and Capital Management Committee Member Trustee Pedrito G. Angeles graduated from Ateneo de Davao College with a Bachelor’s Degree in Banking and Finance, and pursued law for further studies in Ateneo de Davao Law School. His expertise includes commercial banking.|
|24. Board meetings and attendance|
|a. Are the Board of Directors meetings scheduled at the beginning of the year? (end of Q1 )||a. The HDMF Board of Trustees approved during the 320th HDMF Board Meeting a fixed HDMF Monthly Board Meeting every 1st Thursday of the month|
|b. Does the Board of Directors meet at least monthly?||b. The Board of Trustees regularly meets once a month, pursuant to Part 3 Section 8 GCG MC 2012-07|
|c. Did the Board of Directors meet on at least 75% on their scheduled meetings?||c. Yes.|
|d. Has each of the directors/commissioners attended at least 90% of all the board meetings held during the year?||d.|
|e. Did the Board of Directors meet separately at least once during the year without the President/CEO present?||e.|
|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 )||a. 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?||b. No because R.A. 9679, Pag-IBIG Fund charter, provides a specific mechanism for the appointment and removal of Pag-IBIG Fund personnel.
Section 17 of R.A. 9679 provides among others that the Chief Executive Officer, subject to the approval of the Board in case of approval of managerial positions and above, and the confirmation of the Board in below that of manager level, shall appoint the personnel of the Fund, remove, suspend or otherwise discipline them for cause and prescribe their duties and qualifications, in accordance with existing civil service laws, rules and regulations, to the end that only competent personnel may be employed.
Rule IV, Section 7 of the Implementing Rules and Regulations likewise provide that the Chief Executive Officer, subject to the approval of the Board in case of approval of appointments to managerial positions and above, and the confirmation of the Board in appointments to below that of manager level, shall appoint the personnel of the Fund, remove, suspend or otherwise discipline them for cause, and prescribe their duties and qualifications, in accordance with existing civil service laws, rules and regulations, to the end that only competent personnel may be employed.
The Pag-IBIG Fund’s Internal Audit Services Group is headed by a personnel holding the position of a Vice President, thus, his/her appointment will be approved not by the Audit Committee but the full Board pursuant to the HDMF’s Charter.
Copies of the HDMF’s Charter and its IRR are published in HDMF’s website.
|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. Yes|
|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. Yes|
|28. Do different persons assume the roles of Chairman and CEO?||28. Hon. Secretary Eduardo D. Del Rosario is the Chairman of the Board and Mr. Acmad Rizaldy P. Moti is the Chief Executive Officer|
|29. Board of Directors Development|
|a. Does the GOCC have orientation programmes for new Directors?||a. Yes. Pag-IBIG Fund, through the Institute of Corporate Directors (ICD), conducted a Corporate Orientation Governance Seminar for the members of its Board of Trustees and Senior Management Committee entitled GCG Law and Regulatory Framework.|
|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. Yes. Pag-IBIG Fund encourages the members of its Board of Trustees and Senior Management Committee to attend professional education programmes. Early this year, the said key officials attended the Corporate Orientation Governance Seminar conducted by the Institute of Corporate Directors (ICD).|
|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?|
|1. Does the GOCC practice Global Reporting lndex (GRl) on its annual reports?|
|DISCLOSURE AND TRANSPARENCY|
|2. Quality of Annual Report
||2. Yes. The audited financial report was posted on the website (Corporate Governance, Item 43.3.a) three days upon receipt from COA.|
|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 Pag-IBIG Fund BOT member holds more than 5 positions in GOCCs and PLCs.|
|2. ls there non-compliance with Good Governance Conditions?||2. No condition was marked as non-compliant|