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2019 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. Yes. Pag-IBIG Fund adheres to policies addressing customer welfare in accordance with relevant law and regulations.

  1. Information and information systems, including about its employees and members, are among the most valuable assets of HDMF. Thus, these must be protected against unauthorized disclosure or modification, misuse, destruction or non-availability. Security of these information assets is essential to doing business and managing overall business risk.
  2. Pag-IBIG Fund observes the law for protection of senior citizens (Republic Act No. 9994), women (Republic Act No.9710), and persons with disability (Republic Act No. 7277).
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.

  1. Pag-IBIG Fund strictly requires the developer/proponent to secure an Environmental Compliance Certificate by DENR, prior to loan approval.
  2. Pag-IBIG Fund supports the mitigation of the effects of climate change and the maximization of the use of renewable energy resources thru its policies on the availment of a Pag-IBIG housing loan for the acquisition/installation of solar panels.
  3. Pag-IBIG Fund provides incentive to the developers for the use of energy efficient lighting system as stated on its Manual on Real Estate Appraisal. The Fund encourages developers to implement landscape waste minimization in accordance with green tecnology and to provide public transport amenities for low emission and energy efficient vehicles.
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:

  1. As of 2019, Pag-IBIG Fund has partnered with more collecting partners, making available to the members more than 12,000 payment outlets nationwide. Members were then able to pay their Pag-IBIG Fund dues through the collecting partners.
  2. Pag-IBIG Fund has 124 branches in the Philippines and 23 overseas desks in key cities worldwide. These branches have special nooks for breastfeeding mothers and their babies (as seen on picture). From as far north as Aparri in Cagayan and as far south as Bongao in Tawi-tawi, Pag-IBIG Fund members can readily access the Fund's programs and services. The Sta. Mesa Branch and Las Piñas Branches were likewise opened. Aside from branches which are open from Monday to Friday, there are also desks in selected local government units on specific days of the week.
  3. In December 2019, the Virtual Pag-IBIG was launched. This is an online portal where members can conveniently and securely access Pag-IBIG Fund’s services anytime, anywhere. The Virtual Pag-IBIG also provides a chat function where a Pag-IBIG Fund Service Agent is always ready to answer inquiries or resolve any concerns with Pag-IBIG Fund membership.

    With this program, Pag-IBIG Fund customers/members can now accomplish their transactions with Pag-IBIG Fund online, anytime, and wherever they are. They don't have to travel and leave their house; plus, they can avoid unnecessary exposure outside their residences.
b. Interaction with the communities b. Pag-IBIG Fund devotes its time to assist and interact with Filipino communities.

  1. True to its commitment of giving home ownership opportunities to the underserved sector, Pag-IBIG Fund partnered with the LGU of Dangcagan, Bukidnon in 2017 to build 286 residential units for teachers and local employees. This project is on-going as of 2019 and as of this writing.
  2. The Pag-IBIG Calamity Loan is available to eligible members living in areas that have been declared under the state of calamity.
  3. Pag-IBIG Fund and Gingoog LGU teamed up to house teachers, policemen, and informal settlers. This project is on-going as of 2019 and as of this writing.
  4. Pag-IBIG lowers mandatory contribution, makes membership easier for transport sector workers, market vendors, and other earners.
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?
 
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.
b. Does the GOCC publish data relating to health, safety and welfare of its employees? b. Yes.
c. Does the GOCC have training and development programmes for its employees? c. Yes.
d. Does the GOCC publish data on training and development programs for its employees? d. List of training and development programmes for Pag-IBIG Fund employees in 2019.
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
Whistleblower Reports (WRs) must state the specific condition/s, action/s and/or omission/s complained of, as well as the corresponding laws, rules or regulations allegedly violated. If possible, documentary and other evidence in support of the WRs. Such reports shall be submitted to the Whistleblowing Commitee through the following channels:

  • Face-to-Face Meetings :   with the Vice President of LGCG
  • Email                         :   [email protected]
  • Mail                           :   Office of the Vice President of the LGCG
                                         29/F, Petron Megaplaza
                                         358 Sen. Gil Puyat Avenue
                                         Makati City
  • Telefax                      :   (02) 822-1147
b. Does the GOCC have procedures to protect an employee/person reveals illegal/unethical behavior from retaliation? Yes. Pag-IBIG Fund have procedures to protect an employee/person reveals illegal/unethical behavior from retaliation:

Confidentiality
Pag-IBIG Fund shall ensure confidentiality of all information contained in the WRs, the identity of the Whistleblower and of the person complained of. The identity of the Whistleblower may be revealed however if compelled by law or by the courts or unless the Whistleblower authorizes the disclosure of his identity.

Protection of A Whistleblower Against Retaliation
Retaliatory act against the Whistleblowers who submit Whistleblowing reports in good faith shall not be tolerated by the Fund.
Pag-IBIG Fund shall extend all possible assistance or protection to the Whistleblower to the extent allowed by law and deemed proper under the circumstances of each case. Such retaliatory acts may include:

  1. Discrimination or harassment on the workplace;
  2. Demotion;
  3. Reduction in salary or benefits;
  4. Termination of contract;
  5. Evident bias in performance evaluation; or
  6. Any acts or threats that adversely affect the rights and interests of the Whistleblower.
All complaints against the whistleblower arising from his WR will be taken cognizance of by the Office of the Chief Executive Officer, and shall endorse the same to be the Legal and General Counsel Group (LGCG for appropriate action)
II. DISCLOSURE AND TRANSPARENCY
Questionnaire Compliance
7. Quality of Annual Report
Does the GOCC's annual report disclose the following items:		 Please note that the 2019 Annual Report will be posted within 90 days from HDMF’s receipt of the Commission on Audit’s Audited Financial Statements. HDMF received the same on 08 September 2020.
a. Corporate objectives a. Pag-IBIG Fund is guided by its twin mandate of shelter financing and secure savings. It's 5-year plan and corporate objectives centers in these mandates:

Corporate Objectives:
To sustain membership growth and retention that would result to a P2 billion annual increase in member's savings collection until 2022, and provide affordable home financing to at least 440,138 low income earners through Socialized and Low-Cost Housing capturing 34% of the National Shelter Program Direct Housing Assistance Target from 2018 until 2022.

Also, this is disclosed in the Strategy Map for 2019.
b. Financial performance indicators b. Pag-IBIG Fund posts its Quarterly Financial Statements and Trial Balance, as well as it's COA-Audited Financial Statement, when available.
c. Non-financial performance indicators c. Pag-IBIG Fund produces an Accomplishment Report, distributed to the stakeholders at the start of the year, which summarizes the Fund's accomplishments in terms of implementing and pursuing its twin mandates of shelter financing and secure provident savings for its members. The report also provides information on the awards it has received and the testimonies of the stakeholders it has served.
d. Details of whistle-blowing policy d. Pag-IBIG Fund has updated its Whistle-Blowing Policy in its commitment to promote transparency and integrity by providing ample provision for channels to address complaints against its Lingkod Pag-IBIG, and to ensure the protection of the whistlebower.
e. Biographical details (at least age, qualifications, date Reportof first appointment, relevant experience, and any other directorships of listed companies) of directors/commissioners e. Pag-IBIG Fund provides information about the background and credentials of its officers through its website.
f. Training and/or continuing education programme attended by each director/commissioner f. On 26 July 2019, the members of the Board of Trustees attended a Training on Equity Portfolio Management conducted by BPI Asset Management and Trust Corporation.
8. Are the Annual Reports downloadable from the GOCC's website? 8. Yes. Pag-IBIG Fund uploads its Annual Report, whenever available, and makes it accessible and downloadable to the public for full transparency and disclosure. Please note that the 2019 Annual Report will be posted within 90 days from HDMF’s receipt of the Commission on Audit’s Audited Financial Statements. HDMF received the same on 08 September 2020. Nevertheless, a summary of Pag-IBIG Fund's accomplishments for 2019 may be found in the 2-pager Accomplishment Report
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. HDMF’s Annual Reports contain such statement confirming full compliance with the code of corporate governance.
Please note that the 2019 Annual Report will be posted within 90 days from HDMF’s receipt of the Commission on Audit’s Audited Financial Statements. HDMF received the same on 09 September 2020.
10. Timely filing/release of annual/financial reports Please note that the 2019 Annual Report will be posted within 90 days from HDMF’s receipt of the Commission on Audit’s Audited Financial Statements. HDMF received the same on 08 September 2020.
a. Are the audited annual financial report/statement released within 60 days upon receipt from COA? a. Yes, the audited financial statement was released within 60 days upon receipt from COA. Audited as of December 2019 (With posting clearance from COA 8 September 2020, uploaded 9 September 2020)
b. ls the annual report released within 90 days from release of audited financial report? b. Please note that the 2019 Annual Report will be posted within 90 days from HDMF’s receipt of the Commission on Audit’s Audited Financial Statements. HDMF received the same on 08 September 2020.
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. Please note that the 2019 Annual Report will be posted within 90 days from HDMF’s receipt of the Commission on Audit’s Audited Financial Statements. HDMF received the same on 08 September 2020.

 

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 2019-2023 Corporate Plans and Targets during the 2018-07 Board Meeting held on 11 September 2018.
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 94.586% in 2019 based on Self rating  
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. Yes. A total of 13 Board meetings was conducted in 2019
c. Did the Board of Directors meet on at least 75% on their scheduled meetings? c. Yes. A total of 13 Board meetings was conducted in 2019
d. Has each of the directors/commissioners attended at least 90% of all the board meetings held during the year? d. Yes.
e. Did the Board of Directors meet separately at least once during the year without the President/CEO present? e. Yes. The Board of Directors meet separately without the CEO present during the 2019-11 Regular Board Meeting held on 11 December, 2019.
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. Yolanda L. Espinas.
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. Yes, the Fund discloses the various risk management systems it has in place in the Notes to Financial Statement (FS) contained in the Annual Financial Statements (AFS).

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, HDMF’s Annual Report will disclose that the Board of Trustees: a) is responsible for overseeing the HDMF’s financial reporting process; and b) reviews and approves the financial statements, including the schedules attached therein, before such statements are issued to the members, regulators and other users, as stated in the Statement of Management’s Responsibility for Financial Statements which is included in the AFS.

Please note that the 2019 Annual Report will be posted within 90 days from HDMF’s receipt of the Commission on Audit’s Audited Financial Statements. HDMF received the same on 08 September 2020.
c. Does the company disclose how key risks are managed?

c. Yes, each of the various risk management policies, which are disclosed in the Notes to FS, provides an overview on how each type of key risk (credit, liquidity, market, and operational) is managed. The Notes to FS is contained in the AFS.
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, HDMF’s Annual Reportwill disclose that the Board of Trustees: a) is responsible for overseeing the HDMF’s financial reporting process; and b) reviews and approves the financial statements, including the schedules attached therein, before such statements are issued to the members, regulators and other users, as stated in the Statement of Management’s Responsibility for Financial Statements which is included in the AFS.

Please note that the 2019 Annual Report will be posted within 90 days from HDMF’s receipt of the Commission on Audit’s Audited Financial Statements. HDMF received the same on 08 September 2020.
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. Yes. 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. On 26 July 2019, the said key officials attended a Training on Equity Portfolio Management conducted by BPI Asset Management and Trust Corporation
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 Appraisal
a. Is an annual performance assessment conducted of the Board of Directors Committees? The performance of the Board of Trustees is evaluated annually by the GCG in accordance with Memorandum Circular No. 2014-03.
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, the audited annual financial statement was released within 30 days upon the receipt from COA. Audited as of December 2019 (With posting clearance from COA 8 September 2020, uploaded 9 September 2020)
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 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