Aquino OKs appointment of new directors of sequestered firms

MANILA, Philippines—President Benigno Aquino has authorized the Presidential Commission on Good Government to sack directors of sequestered companies and replace them with his government’s nominees.

Executive Order No. 42, signed by Aquino and Executive Secretary Paquito Ochoa, Jr. on May 9, the directors may be replaced with up to two members of the PCGG.

“The provisional authority… shall be exercised by the PCGG chairperson. The designation of any PCGG member as provisional nominee will be valid until permanent replacements are made by the President,” the EO said.

Aquino justified the move by saying in the EO that, “it is  recognized that a number of nominee-directors presently occupying various positions in such corporations continue to do so in a holdover capacity from the previous administration.”

“There is a need to ensure that the directors appointed to these positions are faithful in the discharge of their fiduciary duties and in serving and safeguarding the interest of the Philippines and the Filipino people,” he added.