|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. Section IX. of the HDMF Manual of Corporate Governance explicitly identifies the Fund's stakeholders and states the nature and extent of their interest to the Fund's operations and programs. It also specifically states the importance of maintaining good relationship with the stakeholders, including providing them with adequate information, respecting their rights, and providing them with a venue for legal redress should their rights be violated.
Similarly, copies of the Fund's Circulars affecting its programs and operations may be viewed and downloaded from the website
|b. Elaborates its efforts to interact with the communities in which they operate?||b. Yes. The HDMF Manual of Corporate Governance also provides for the importance, not just of establishing a good relationship with the Fund's stakeholders but also to ensure an open communication with them.|
|c. Ensure that its value chain is environmentally friendly or is consistent with promoting sustiainable development?||c. Yes. In compliance with the Republic Act 11285 (Energy Efficiency and Conservation Act), Pag-IBIG Fund issued Special Order No. 2020-2515 designating Energy Efficiency and Conservation (EEC) Officers and Focal Persons whose duties and responsibilities include the preparation, formulation of the Energy Efficiency and Conservation Plan (EECP) of Pag-IBIG Fund consistent with the Government Energy Management Plan (GEMP)|
|2. Does the GOCC disclose the activities that it has undertaken to implement the above-mentioned policies?|
|a. Customer health and safety||a. Yes. The Fund issues news releases and social media posts to promote its customer-centric programs and activities. This includes information on policies and activities taken to ensure customer welfare against COVID-19, as well as benefits released to aid the members in coping with the pandemic.|
|b. Interaction with the communities||
b. Yes. Pag-IBIG Fund also maintains an Announcement section in the website where imporant advisories and events of the Fund were promoted.
Aside from that Pag-IBIG Fund also engages with its stakeholders to help address their needs, especially in the time of pandemic.
|c. Environmentally-friendly value chain||
c. Yes. Pag-IBIG Fund has been promoting the use of online means for its programs and services. This does not only provide convenient and efficient service to our members but also to promote paper-less transactions. Pag-IBIG Fund uses two channels via the website to promote these activities:
|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. Both the website and the Corporate Annual Report provide the contact details, which the stakeholders can use to issue their complaints and concerns.
For complaints and suggestions:
The website also specified the expected timeline for response depending on the nature of concern.
|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. The HDMF Manual of Corporate Governance also provides for the consideration in the welfare of the employees, not just in regular compensation but also in providing for their health and safety requirements.|
|b. Does the GOCC publish data relating to health, safety and welfare of its employees?||b. Yes. The Pag-IBIG Fund website has an Employee Welfare page, which summarizes the activities and programs provided by the Fund for its Lingkod Pag-IBIG.|
|c. Does the GOCC have training and development programmes for its employees?||c. Yes. The Employee Welfare page of the Pag-IBIG Fund website summarizes the training and development programs provided by the Fund for its Lingkod Pag-IBIG.|
|d. Does the GOCC publish data on training and development programs for its employees?||d. Yes. The Pag-IBIG Fund website has an Employee Welfare page, which summarizes the activities and programs provided by the Fund for its Lingkod Pag-IBIG.|
|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
|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:
|II. DISCLOSURE AND TRANSPARENCY|
|7. Quality of Annual Report
Does the GOCC's annual report disclose the following items:
|a. Corporate objectives||
Pag-IBIG Fund is guided by it's twin mandates of providing affordable shelter financing and secured savings facility for its members. Its 5-year plan and corporate objectives are aligned with this mandates.
Pag-IBIG Fund has likewise uploaded a copy of its Operational Vision/Corporate Objectives together with its Strategy Map as submitted to the GCG.
|b. Financial performance indicators||
A copy of the Commission on Audit's Audit Report of the Fund's 2020 Financial Statement is likewise uploaded.
|c. Non-financial performance indicators||
A copy of the Fund's accomplishment report for 2020 is also uploaded in the Transparency page of the corporate website
|d. Details of whistle-blowing policy||
Pag-IBIG Fund's annual report provides information, not just about its accomplishments but also about details of its whistleblowing policy to declare its commitment to integrity of service and transparency.
Details of Pag-IBIG Fund's Whistleblowing Policy is also uploaded and available for viewing in the corporate website
|e. Biographical details (at least age, qualifications, date Reportof first appointment, relevant experience, and any other directorships of listed companies) of directors/commissioners||
Profile of the members of the Pag-IBIG Fund Board of Trustees is provided in Pag-IBIG Fund's annual accomplishment report.
The website also lists details and credentials of the Pag-IBIG Fund Trustees, as well as its Senior Management through the corporate website
|f. Training and/or continuing education programme attended by each director/commissioner||
Details of the training programs for Pag-IBIG Fund Trustees and Officers may also be found in the corporate website
|8. Are the Annual Reports downloadable from the GOCC's website?||Digital copies of all Pag-IBIG Fund's Annual Reports may be accessed, viewed, and downloaded from the Pag-IBIG Fund corporate website, specifically in the Transparency Seal webpage|
|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. Guided by the HDMF Manual of Corporate Governance, every Lingkod Pag-IBIG - from the Trustees and Management to the rank-and-file, is subjected to full compliance of the corporate goveranance code|
|10. Timely filing/release of annual/financial reports|
|a. Are the audited annual financial report/statement released within 60 days upon receipt from COA?||Yes. Pag-IBIG Fund received the clearance from COA to post the Audited Financial Statement on 06 August, and was uploaded in the corporate website on 07 August 2021, one (1) day after receipt.|
|b. ls the annual report released within 90 days from release of audited financial report?||Yes, the Pag-IBIG Fund's report of its accomplishments and performances has been uploaded within 60 days after the release of the audited financial report from COA.|
|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?||
Yes. The Fund's Financial Report bears the folllowing:Statement of Management's Responsibility for Financial Statements
Management is responsible for the preparation and fair representation of the financial statements, including the schedules attached herein, for the years ended December 31, 2020 and 2019, in accordance with the prescribed financial reporting framework indicated therein, and for such internal control as Management determines is necessary to enable the preparation of financial statements that are free from material misstatements, whether due to fraud or error.
|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?||Yes. Every year the Board reviews the Vision, Mission and Strategy Map of the Fund as part of compliance to GCG for the submission of its Performance Evaluation System. The Fund's approved Strategy Map may be found here:|
|b. Does the Board of Directors monitor/oversee the implementation of the corporate strategy?||
"The Board shall perform (4.03) Monitoring and evaluating on a regular basis the implementation of corporate strategies and policies,business plans and operating budgets, as well as Management’s over-all performance to ensure optimum results"
|12. Did the GOCC achieve 90% in the PES?||Yes. Pag-IBIG Fund achieved 98.682% in the 2020 Performance Evaluation System|
|13.Code of ethics or conduct|
|a. Are the details of the code of ethics or conduct disclosed?||Yes. Found in the Governance Page of the Pag-IBIG Fund corporate website, under Section 43.4 On Governance Matters, is the link to the Code of Conduct and Ethical Standards of Officers and Employees of the Hime Development Mutual Fund (HDMF)|
|b. Does the GOCC disclose that all Directors/Commissioners, senior management and employees are required to comply with the code?||
"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?||
"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?||
|15. Did the Nomination and Compensation/Remuneration Committee meet at least twice during the year?||Yes. The Board Governance Committee met 15 times for the FY 2020, also conducting a Joint Committee meeting with the Board Audit Committee (BAC) and the Board Risk and Capital Committee (BRCC)|
|16. If yes, is the report of the Nomination and Compensation/Remuneration Committee publicly disclosed?||Yes. Under Section 43.2 (On the Board and Officers) of the Governance Page in the Pag-IBIG Fund corporate website is a link to the document detailing the activities and matters that the BGC endorsed to the full Board for discussion and resolution.|
|17. Does the Board appoint an Audit Committee?||
|18. lf yes, is the report of the Audit Committee publicly disclosed?||Yes. Under Section 43.2 (On the Board and Officers) of the Governance Page in the Pag-IBIG Fund corporate website is a link to the document detailing the activities and matters that the BAC endorsed to the full Board for discussion and resolution.|
|19. Does at least one member of the Audit Committee have an audit, accounting or finance background (qualification or experience)?||
Yes. 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?||Yes. The BAC met 12 times in 2020, including a Joint Committee Meeting with BGC.|
|21. Does the Board appoint a Risk Management Committee?||
|22. If yes, is the report on Risk Management Committee publicly disclosed?||Yes. Under Section 43.2 (On the Board and Officers) of the Governance Page in the Pag-IBIG Fund corporate website is a link to the document detailing the activities and matters that the BRCC endorsed to the full Board for discussion and resolution.|
|23. Does at least one member of the Risk Management Committee have a background in finance and investments?||Yes. 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 )||
Yes. The Pag-IBIG Fund Board of Trustees approved during the 320th HDMF Board Meeting a fixed HDMF Monthly Board Meeting to be held every 1st Thursday of the month. This scheduled is reiterated at the beginning of the year to inform the Trustees for compliance and to block off proposed dates.
Similarly, the schedule of the Board Oversite Committees were already resolved before the start of the year
|b. Does the Board of Directors meet at least monthly?||
Yes. Pursuant to GCG Memorandum Circular 2012-07 Section 8, Part 3, the Board meets for regular board meetings once a month. If needed, the Chairperson, or in his absence, the Vice Chairperson, may call for a Special Meeting at any time.
For FY 2020, the Board of Trustees met a total of 13 times for FY 2020.
*Please note that for the months of February and May, when the uncertainty of the Taal Volcano eruption and the COVID-19 pandemic was at its peak, the Board did not meet as a group but has coordinated through digital means (email and, Viber) for everyone's safety until a stable meeting platform has been put in place.
|c. Did the Board of Directors meet on at least 75% on their scheduled meetings?||Yes. The members of the Board recorded a perfect attendance on all scheduled Board meetings, as well as the scheduled Committee Meetings.
|d. Has each of the directors/commissioners attended at least 90% of all the board meetings held during the year?||Yes. The members of the Board recorded a perfect attendance of all scheduled Board meetings, as well as the scheduled Committee Meetings.|
|e. Did the Board of Directors meet separately at least once during the year without the President/CEO present?||Yes. While every member of the Board strived to be present in all the scheduled meetings, in compliance with the practice of good governance, the Board requested one executive session without the CEO as recorded during the Special Board Meeting 2020-04, dated 25 November 2020.|
|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?||Yes. The Office of the Board Secretary, who provides administrative and organizational support to the Board prepares the agenda and sends out notices and board materials for review, at least three (3) days before the scheduled meeting in compliance with the policy issued by the Chairman|
|b. Is the Board Secretary trained in legal, accountancy or company secretarial Practices?||Yes. Atty. Emilio C. Pangilinan was a practicing lawyer prior to joining the Fund as its Corporate Secretary.|
|26. Internal Audit|
|a. Are the Board of Directors meetings scheduled at the beginning of the year? (end of Q1 )||Yes. Pag-IBIG Fund has a separate Internal Audit Services Group, led by VP Yolanda L. Espinas|
|b. Does the appointment and removal of the internal auditor require the approval of the Audit Committee?||
No. The Fund's charter, R.A. 9679, 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?||
Yes. In the Governance page of the Pag-IBIG Fund Corporate Website, Section 43.3 (On Financial and Operational Matters) Item H, provides a link to the disclosures of risk factors and measures taken to manage such risks.
|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?||
In CY 2019, the RMTF started updating the ManCom, BRCC and the full Board on the financial risks (credit, market and liquidity) associated with the Fund’s operations by reporting to them monthly the Financial Risk Highlights (FRH). The FRH includes all the risk measurement tools/models/templates adopted by the Fund to calculate/compute market, credit and liquidity risks.
Included in the Board Audit Committe's charter is the review of the enterprise-wide risk management process.
|c. Does the company disclose how key risks are managed?||
Design and deployment of the overall risk management framework to ensure that the Fund’s exposures to its various risk-taking activities are appropriately identified, measured, monitored, reported, and managed across the organization covering credit risk, liquidity risk, market risk, and operational risk
Measures addressing each of the specific types of risks are also disclosed.
|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?||
Trustee Pedrito Angeles, as head of the Board Audit Committee, leads in the review of the Fund's eneterprise-wide risk management system, and provides feedback on the adequacy and application of the Risk Management Group's report. Stress-testing has been conducted and presented during the Board, which provided guidance for Board decisions.
|28. Do different persons assume the roles of Chairman and CEO?||
Yes. Department of Human Settlements and Urban Development (DHSUD) Secretary Eduardo D. del Rosario is the Pag-IBIG Fund Chairperson
Mr. Acmad Rizaldy P. Moti is the Pag-IBIG Fund CEO.
|29. Board of Directors Development|
|a. Does the GOCC have orientation programmes for new Directors?||Yes. Newly-appointed Trustees are provided with an orientation of Pag-IBIG Fund's programs and orientations.|
|b. Does the GOCC have a policy that encourages Directors/Commissioners to attend ongoing or continuous professional education programmes?||
"c. Design an orientation program for the new Trustees and consult with them on their progress and a continuing education program for existing Trustees."
|c. Did all Appointive Directors attend at least 1 training for the calendar year?||Yes. All Appointive Directors attended the online training "Advanced Corporate Governance Program held on 11 November 2020.|
|30. Board Appraisal|
|a. Is an annual performance assessment conducted of the Board of Directors?||None conducted for 2020|
|b. Does the GOCC disclose the process followed in conducting the Board assessment?||None conducted for 2020|
|c. Does the GOCC disclose the criteria used in the Board assessment?||None conducted for 2020|
|31. Committee Appraisal|
|a. Is an annual performance assessment conducted of the Board of Directors Committees?||None conducted for 2020|
|1. Does the GOCC practice Global Reporting lndex (GRl) on its annual reports?||N/A|
|DISCLOSURE AND TRANSPARENCY|
|2. Quality of Annual Report
||Yes. Pag-IBIG Fund received the clearance from COA to post the Audited Financial Statement on 06 August, and was uploaded in the corporate website on 07 August 2021, one (1) day after receipt.|
|RESPONSIBILITIES OF THE BOARD|
|1. Are there members of the Board of Directors who hold more than five (5) positions in GOCCs and PLCs?||No. There was no member of the Board holding more than five (5) positions in GOCCs and PLCs.|
|2. ls there non-compliance with Good Governance Conditions?||No. All Good Governance conditions stipulated under Sec 43 of GCG MC 2021-07 has been complied with by the Fund.|