The Corporate Governance Scorecard (CGS) is a corporate governance rating system designed to raise the standards of corporate governance practices of the GOCCs to be at par with the ASEAN state-owned enterprises. It is a list of questions used to rate a GOCC’s governance policies and practices on the basis of the three (3) OECD Principles of Corporate Governance for State-Owned Enterprises.
I. Stakeholder Relationships (15%)
| Question | Guiding Reference | Y/N | Reference Link/ Supporting Documents |
|---|---|---|---|
| 1. Does the GOCC disclose a policy that: | |||
a. Stipulates the existence and scope of its effort to address customer’s welfare | GCG MC No. 2012-07 Chapter VII Sec. 35, Sec. 37 | Y | 1. MWSS RO Citizen’s Charter 2024 (1st Edition) – Service Pledge 2. 2008, 2013 and 2023 Implementing Rules and Regulations (IRRs) 3. Section 37 – 38 of the MWSS Manual of Corporate Governance 4. RO RM 06-01 Rev 4_13 September 2024_List of Interested Parties |
| b. Elaborates its efforts to interact with the communities in which they operate? | GCG MC No. 2012-07 Chapter VII Sec. 35, Sec. 34 | Y | 1. Public Consultation and Information Drives 2. Page 13 to 24 of the MWSS RO Annual Report 2022 (Conduct of Public Consultation, Information Drives, Media Interviews and Press Releases) 3. Corporate Social Responsibility (CSR) Statement 4. Page 30, Section 40 of the MWSS Manual of Corporate Governance 5. Water Conservation Website Page 6. Water Service Advisories Website Page 7. MWSS RO SocMed(Facebook/Twitter) on water conservation, etc a) MWSS RO Facebook Page b) MWSS RO Twitter Page |
| c. Ensure that its value chain is environmentally friendly or is consistent with promoting sustainable development? | GCG MC No. 2012-07 Chapter VII Sec. 35, Sec. 40 | Y | 1. Page 31 of the MWSS Manual of Corporate Governance 2. Page 87 of the MWSS RO Annual Report 2022 (Environmental Committee) 3. Page 65 of MWSS RO Annual Report 2022 (Water Quality Control Department) 4. Vision-Mission Statement (RO website) 5. Strategic Map & PES Scorecard for CY 2024 |
| 2 Does the GOCC disclose the activities that it has undertaken to implement the above mentioned policies? | |||
| a. Customer health and safety | GCG MC No. 2012-07 Chapter VII Sec. 35, Sec. 40 OECD Principle IV (A) & Global Reporting Initiative | Y | 1. Page 99 of MWSS RO Annual Report 2022 (Safety and Health Committee) 2. Office Order No. 055, s. 2020 Interim Quarantine and Social Distancing Protocols 3. MWSS RO Safety and Health Manual 4. MWSS RO SocMed (Facebook/Twitter) posts on health and safety a) MWSS RO Facebook Page b) MWSS RO Twitter Page 5. Fire Safety and Disaster Prevention Seminar 6. Desludging Awareness |
| b. Interaction with the communities | GCG MC No. 2012-07 Chapter VII Sec. 34 OECD Principle IV (A) & Global Reporting Initiative | Y | 1. Public Information and Public Consultation Drives 2. Page 13 to 24 of the MWSS RO Annual Report 2022 (Conduct of Public Consultation, Information Drives, Media Interviews and Press Releases) |
| c. Environmentally-friendly value chain | GCG MC No. 2012-07 Chapter VII Sec. 40 OECD Principle IV (A) & Global Reporting Initiative | Y | |
| 3 Does the GOCC have a separate corporate social responsibility (CSR) report/section or sustainability report/section? | GCG MC No. 2012-07 Chapter VIII Sec. 41, Sec. 43.4.e | Y | 1. Page 29, Section 37 of the MWSS Manual of Corporate Governance 2. Corporate Social Responsibility Statement 3. Page 87 of the MWSS RO Annual Report 2022 (Environmental Committee) 4. MWSS RO Chief Regulator Shares Expertise on Best Practices at the Water and Sanitation (WATSAN) Regulatory Conference for South Asia 5. MWSS RO Recognizes 5 LGUS at the 2024 Gawad Para Sa Kaagapay Sa Kalusugan At Kapaligiran |
| 4 Where stakeholder interests are protected by law, stakeholders should have the opportunity to obtain effective redress for violation of their rights. | 1. Page 29, Section 37 of the MWSS Manual of Corporate Governance 2. MWSS RO Website Contact Details with Message Us Form 3. 2008, 2013 and 2023 Implementing Rules and Regulations (IRRs) | ||
| a. 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? | OECD Principle IV (B) | Y | |
| 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? | GCG MC No. 2012-07 Chapter VII Sec. 39 OECD Principle IV (C) Global Reporting Initiative: Sustainability Report | Y | 1. MWSS RO Safety and Health Manual 2. MWSS RO GAD Accomplishment Reportfor FY 2024 (Narrative Report and AR submitted to PCW) 3. Page 28 of the MWSS Manual of Corporate Governance 4. MWSS RO TUBIG Collective Negotiation Agreement, ArticleVI – XII states employees’ rights to health, safety, welfare and humane working conditions allowed under the law 5. MWSS RO Learning & Development Guidelines 6. Learning and Development Training Plan 2024 |
| b. Does the GOCC publish data relating to health, safety and welfare of its employees? | OECD Principle IV (C) Global Reporting Initiative: Sustainability Report | Y | 1. MWSS RO Safety and Health Manual 2. MWSS RO TUBIG Collective Negotiation Agreement, Article VI – XII states employees’ rights to health, safety, welfare and humane working conditions allowed under the law 3. Office Order No. 106, Series of 2023 RE: Amended Flexible Work Arrangements in the MWSS Regulatory Office (RO) 4. CODI Manual |
| c. Does the GOCC have training and development programmes for its employees? | GCG MC No. 2012-07 Chapter VII Sec. 36 OECD Principle IV (C) Global Reporting Initiative: Sustainability Report | Y | 1. Learning and Development Training Plan 2024 2. MWSS RO GAD Accomplishment Reportfor FY 2024 (Narrative Report and AR submitted to PCW) 3. Page 28 of the MWSS Manual of Corporate Governance 4. MWSS Safety and Health Manual |
| d. Does the GOCC publish data on training and development programs for its employees? | OECD Principle IV (C) Global Reporting Initiative: Sustainability Report | Y | 1. MWSS RO Annual Report 2023 2. MWSS RO GAD Accomplishment Reportfor FY 2024 (Narrative Report and AR submitted to PCW) 4. Learning and Development Training Plan 2024 |
| 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? | GCG MC No. 2014-04 | Y | 1. MWSS RO Whistleblowing Policy 2. Citizen’s Complaint Hotline (8888) |
| b. Does the GOCC have procedures to protect an employee/person who reveals illegal/unethical behavior from retaliation? | GCG MC No. 2014-04 | Y | 1. MWSS RO Whistleblowing Policy 2. Grievance Mechanism (Office Order No. 062, Series of 2021 RE: Reconstitution of the MWSS RO Grievance Committee) |
II. Disclosure and Transparency (35%)
| Question | Guiding Reference | Y/N | Reference Link/ Supporting Documents |
|---|---|---|---|
| 7 Quality of Annual Report | OECD Principle V (A); OECD Principle V (E); ICGN 2.4 Composition and structures of the Board; ICGN 2.4.1 Skills and experiences; ICGN 2.4.3 Independence; ICGN 5.0 Remuneration | ||
| Does the GOCC’S annual report disclose the following items: a. Corporate objectives | RA No. 10149 Chapter V Sec. 25, GCG MC 2012-07 Chapter VIII Sec. 41 | Y | 1. Governance Commission for GOCCs (GCG) and MWSS Regulatory Office (RO) Performance Agreement |
| b. Financial Performance Indicators | RA No. 10149 Chapter V Sec. 25, GCG MC 2012-07 Chapter VIII Sec. 41 | Y | 1.MWSS RO Annual Report 2023 2. MWSS Audited Financial Statements – Annual Audit Report for 2023 3. Quarterly, And Annual Reports And Trial Balance |
| c. Non-financial performance indicators | RA No. 10149 Chapter V Sec. 25, GCG MC 2012-07 Chapter VIII Sec. 41 | Y | 1. Performance Scorecards Monitoring Report 2. MWSS RO Annual Report 2023 |
| d. Details of whistle-blowing policy | RA No. 10149 Chapter V Sec. 25, GCG MC 2012-07 Chapter VIII Sec. 41 | Y | 1. Whistleblowing Policy for GOCC |
| e. Biographical details (at least age, qualifications, date of first appointment, relevant experience, and any other directorships of listed companies) of directors/commissioners | RA No. 10149 Chapter V Sec. 25, GCG MC 2012-07 Chapter VIII Sec. 41 | Y | 1. Section 43.2 On the Board and Officers 2. Complete listing of the Directors and Officers and their membership in Board Committees; |
| f. Training and/or continuing education programme attended by each director/commissioner | RA No. 10149 Chapter V Sec. 25, GCG MC 2012-07 Chapter VIII Sec. 41 | N | |
| 8 Are the Annual Reports downloadable from the GOCCs website? | Annual reports/Financial statements on the year being assessed must be downloadable from the GOCC’s website. | Y | |
| 9 Corporate Governance Confirmation Statement | 1. MWSS RO Annual Report 2023 2. MWSS RO Certification – Statement of Full Compliance with the Code of Corporate Governance | ||
| 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, identify and explain reasons for such issue? | OECD PRINCIPLE V (A) (8) | Y | |
| 10 Timely filing/release of annual financial reports | |||
| a. Are the audited annual financial report/statement released within 60 days upon receipt from COA? | OECD Principle V. Transparency and Disclosure, A. OECD Principle II. The State Acting as an Owner E. (3) The GOCC must explicitly state the 1.) date of receipt of the AFS from COA and 2.) the date when the AFS was released/published online. An N/A rating will be given for this item if the COA-audited financial report is not yet available or not yet transmitted to the GOCC, provided that the evidence/ proof of their financial reports have already been submitted for audit and that they disclose their unaudited financial reports instead. | Y | T |
| b. Is the annual report released within 90 days from the release of audited financial reports? | The GOCC must explicitly state the 1.) date of receipt of the AFS from COA and 2.) the date when the Annual Report was released/published online | Y | |
| c. Is the true and fairness / fair representation of the annual financial statements/reports affirmed by the board of directors/commissioners and/or relevant officers of the company? | GCG MC No. 2012-07 Chapter VIII Sec. 42 (d) OECD Principle V (C); OECD Principle V (E); OECD Principle V- (A. ICGN 7.2 Timely Disclosure; ICGN 7.3 Affirmation of financial statements There should be a statement online made by the Directors and/or relevant officers confirming the truth/veracity and fairness of the GOCC’s financial statements. | Y |
III. Responsibilities of the Board (50%)
| Question | Guiding Reference | Y/N | Reference Link/ Supporting Documents |
|---|---|---|---|
| 11 Corporate Vision/Mission | |||
| a. Has the Board of Directors reviewed the vision and mission/strategy in the last financial year? | GCG MC No. 2012-06 Chapter III Sec. 27.1 (a) OECD Principle 6 (P58) ICGN:3.2 Integrity | Y | 1. MWSS RO Resolution No. 2023-25 RE: MWSS RO Charter Statement and Strategy Map, and Performance Scorecard for CY 2024 dated 23 October 2023 2. Governance Commission for GOCCs (GCG) and MWSS Regulatory Office (RO) Performance Agreement for 2024 3. Page _____ of MWSS RO Annual Report 2023 |
| b. Does the Board of Directors monitor/oversee the implementation of the corporate strategy? | GCG MC No. 2012-06 Chapter III Sec. 27.1 (b) | Y | 1. MWSS RO Resolution No. 2022-12 Re: MWSS RO Charter Statement and Strategy Map and Performance Scorecard for CY 2023 dated 11 Nov. 2022 2. Performance Scorecards and Strategy Map for 2024 |
| 12 Did the GOCC achieve 90% in the PES? | The GOCC must publish the GCG-validated performance scorecard on the year being assessed. | Y | |
| 13 Code of ethics or conduct | |||
| a. Are the details of the code of ethics or conduct disclosed? | Y | 1. Manual of Corporate Governance 2. No Gift Policy | |
| b. Does the GOCC disclose that all Directors/ Commissioners, senior management and employees are required to comply with the code? | Y | 1. Manual of Corporate Governance 2. No Gift Policy | |
| c. Does the company disclose how it implements and monitors compliance with the code of ethics or conduct? | Y | 1. Manual of Corporate Governance | |
| 14 Does the Board appoint a Nomination and Compensation/Remuneration Committee? Not Applicable | GCG MC No. 2012-07 Chapter III Sec. 16.2.4; RA No. 10149 Chapter IV Sec. 23; GCG MC No. 2012-07 Chapter VIII Sec. 41 OECD Principle II. The State Acting as an Owner, F. (2) ICGN Global Corporate Principles 5.0 Remuneration & 5.4 Transparency; 2013 ASEAN Corporate Governance Scorecard E.2.10 & E.2.16; SEC MC No. 2 s. 2002 Sec. 9 (B) (b) | N | Not Applicable |
| 15 Did the Nomination and Compensation/Remuneration Committee meet at least twice during the year? Not Applicable | N | Not Applicable | |
| 16 If yes, is the report of the Nomination and Compensation/Renumeration Committee publicly disclosed? Not Applicable | N | Not Applicable | |
| 17 Does the Board appoint an Audit Committee? | GCG MC No. 2012-07 Sec. 8(j); GCG MC No. 2012-07 Chapter III Sec. 16.2.2; GCG MC No. 2012-07 Chapter VIII Sec. 41 OECD Principle V. Transparency and Disclosure, B. 2013 ASEAN Corporate Governance Scorecard E.2.22; SEC MC No. 2 s. 2002 Sec. 9 (A) | Y | 1. Code of Corporate Governance for GOCCs 2. Article VII. Disclosure and Transparency Requirements 3. Section 43.2 On the Board and Officers 4. 2024 Composition of MWSS Board Committees |
| 18 If yes, is the report of the Audit Committee publicly disclosed? | Y | Not Applicable | |
| 19 Does at least one member of the Audit Committee have an audit, accounting or finance background (qualification or experience) | Y | Not Applicable | |
| 20 Did the Audit Committee meet at least four times during the year? | Y | 2024 Audit and Risk Management Committee (ARMC) Meeting Attendance | |
| 21 Does the Board appoint a Risk Management Committee? | GCG MC No. 2012-07 Chapter III Sec. 16.2.5; GCG MC No. 2012-07 Chapter III Sec. 8 (b), (h) OECD Principle VI D (6) | Y | 1. Code of Corporate Governance for GOCCs 2. Article VII. Disclosure and Transparency Requirements 3. Transparency Seal Section 43.2 On the Board and Officers 4. 2024 Composition of MWSS Board Committees 5. Audit and Risk Management Committee |
| 22 If yes, is the report on Risk Management Committee publicly disclosed? | Not Applicable | ||
| 23 Does at least one member of the Risk Management Committee have a background in finance and investments? Business Management Degree – ARMC Chairman | Y | Not Applicable | |
| 24 Board meetings and attendance | |||
| a. Are the Board of Directors meetings scheduled at the beginning of the year? (end of Q1) | Y | Committee & Enbanc attendance 2024 En Banc 1. 2024 En Banc 2. 2024 CMC 3. 2024 HRC 4. 2024 ARMC 5. 2024 EGC | |
| b. Does the Board of Directors meet at least monthly? | GCG MC No. 2012-07 Sec. 8 (a) | Y | Committee & Enbanc attendance 2024 En Banc 1. 2024 En Banc 2. 2024 CMC 3. 2024 HRC 4. 2024 ARMC 5. 2024 EGC |
| c. Did the Board of Directors meet on at least 75% on their scheduled meetings? | INDO SCORECARD | Y | Committee & Enbanc attendance 2024 En Banc 1. 2024 En Banc 2. 2024 CMC 3. 2024 HRC 4. 2024 ARMC 5. 2024 EGC |
| d. Has each of the directors/commissioners attended at least 90% of all the board meetings held during the year? | OECD PRINCIPLE VI (E) | Y | Committee & Enbanc attendance 2024 En Banc 1. 2024 En Banc 2. 2024 CMC 3. 2024 HRC 4. 2024 ARMC 5. 2024 EGC |
| e. Did the Board of Directors meet separately at least once during the year without the President/CEO present? | WORLDBANK PRINCIPLE 6 | Y | Committee & Enbanc attendance 2024 En Banc 1. 2024 En Banc 2. 2024 CMC 3. 2024 HRC 4. 2024 ARMC 5. 2024 EGC |
| 25 Access to information | |||
| a. Does the GOCC have a policy that stipulates board papers for Board of Directors / Commissioners meetings to be provided to the Board at least three (3) working days in advance of the board meeting? | Y | Memorandum on Submission of Board Matters | |
| b. Is the Board Secretary trained in legal, accountancy or company secretarial practices? Y Bachelor of Laws/Juris Doctor | Y | Profile of Corporate Secretary | |
| 26 Internal Audit | |||
| a. Does the company have a separate internal audit function? | GCG MC No. 2012-07 Chapter III Sec. 16.1, 16.2.2 (a) & (d) OECD Principle VI (D) | Y | 1. Page 22, Sec 20 of the MWSS Manual of Corporate Governance 2. MWSS RO Organizational Chart 3. Internal Quality Audit Team 4. Surveillance Audit of MWSS RO |
| b. Does the appointment and removal of the internal auditor require the approval of the Audit Committee? | Y | Republic Act No. 6234, Section 8 (d)(3) “(d) To remove, suspend or otherwise discipline for cause, or terminate by reason of incapacity the term of office of, all other personnel, without prejudice to an appeal within thirty days from receipt of the decision to the Board, the decision of which Board shall be immediately final and enforceable;” | |
| 27 Risk Oversight | |||
| a. Does the company disclose the internal control procedures/risk management systems it has in place? | Y | 1. Risk Management Plan 2024 2. Risk Management Procedure | |
| 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? | N | ||
| c. Does the company disclose how key risks are managed? | Y | 1. Risk Management Plan 2024 2. Risk Management Procedure | |
| 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 control/risk management systems? | N | ||
| 28 Board Chairman | |||
| Do different persons assume the roles of Chairman and CEO? | Y | 1. Section 43.2 On the Board and Officers 2. 2024 Composition of MWSS Board Committees | |
| 29 Board of Directors Development | |||
| a. Does the GOCC have orientation programmes for new Directors | RA No. 10149 Sec. 16; GCG MC No. 2012-05 Art. 5 (f) OECD PRINCIPLE VI (E) | N | |
| b. Does the GOCC have a policy that encourages Directors/Commissioners to attend on-going or continuous professional education programmes? | RA No. 10149 Sec. 16; GCG MC No. 2012-05 Art. 5 (f) OECD PRINCIPLE VI (E) | Y | Page 17 of the MWSS Manual of Corporate Governance |
| c. Did all appointive Directors attend at least 1 training for the calendar year? | RA No. 10149 Sec. 16; GCG MC No. 2012-05 Art. 5 (f) OECD PRINCIPLE VI (E) | N | |
| 30 Board Appraisal | |||
| a. Is an annual performance assessment conducted of the Board of Directors? | GCG MC No. 2012-07 Chapter III OECD Principle VI. The Responsibilities of the Boards of State-Owned Enterprises, F. 2013 ASEAN Corporate Governance Scorecard E.5.5 & E.5.6 | N | |
| b. Does the GOCC disclose the process followed in conducting the Board assessment? | N | ||
| c. Does the GOCC disclose the criteria used in the Board assessment? | N | ||
| 31 Committee Appraisal | |||
| Is an annual performance assessment conducted by the Board of Directors Committees? | UK CODE (JUNE 2010) | N |
IV. Bonus
| Question | Guiding Reference | Y/N | Reference Link/ Supporting Documents |
|---|---|---|---|
| BONUS | |||
| 1 Stakeholders Relationship Does the GOCC practice Global Reporting Index (GRI) on its annual reports? Disclosure and Transparency | International Framework – DRAFT, IIRC Council Item 3b Meeting The GOCC must publicly disclose that it has adopted integrated reporting based on the GRI framework for its disclosures. | Y | |
| 2 Quality of Annual Report Are the audited annual financial report/statement released within 30 days upon receipt from the COA? | International Framework – DRAFT, IIRC Council Item 3b Meeting The GOCC must explicitly state the date when the AFS was released from COA and when it was published. | Y | Annual Reports Website Page Transparency Seal Sec. 43.3 (Website page) The MWSS Regulatory Office (RO) received the Audited Financial Statement from COA last 02 September 2024, 10:14 AM The Audited Financial Statement was released/published/posted online in the RO website last 04 September 2024 1. MWSS annual Audited Financial and Performance Report within thirty (30) days from receipt of such Report 2. MWSS Audited Financial Statements – Annual Audit Report 3. Quarterly, And Annual Reports And Trial Balance |
V. Penalty
| Question | Guiding Reference | Y/N | Reference Link/ Supporting Documents |
|---|---|---|---|
| PENALTY Responsibilities of the Board | |||
| 1 Are there members of the Board of Directors who hold more than five (5) positions in GOCCs and PLCs? | The GOCC must name all the directorships of their Appointive Direcotrs to other GOCCs and PLCs. Should the Director have more than 5 positions in other GOCCs and PLCs, the GOCC will be marked N on this item. | Y | The directorships of the MWSS’ appointive directors/ Board of Trustees are disclosed on their respective resumes, which are posted on the MWSS RO and MWSS CO website. (link from RO website) https://ro.mwss.gov.ph/transparency-seal-2/ (link from CO website) https://mwss.gov.ph/transparency-seal-2 |
| 2 Is there non-compliance with Good Governance Conditions? | The GOCC must disclose the results of GCG’s evaluation of its good governance conditions. Should the GOCC fail to comply with two or more conditions, it will be marked N on this item. | N | The CGS CY 2020-2023 is disclosed on MWSS RO website |