I. STAKEHOLDERS RELATIONSHIP
| Question | Website Section/Link/LRTA’s Response |
|---|---|
| 1. Does the GOCC disclose a policy that: | |
| a. Stipulates the existence and scope of its effort to address customer’s welfare? |
Section 9.6. Customers. Integrity and honesty in dealings with customers is necessary for a successful and sustained business relationship. The LRTA shall operate a highly effective and efficient organization, focused on meeting customer objectives with the aim of providing services which give fair value and consistent quality, reliability and safety in return for the price paid for the same. LRTA shall operate policies of continuous improvement, of both processes and the skills of the staff, to take best advantage of advances in all aspect of society in order to ensure that it continues to add value to its customers’ businesses and/or quality of life. It shall at least annually conduct a customer’s satisfaction survey through a third party and/or consultation where appropriate, as part of its continual improvement process. The Authority shall have clear and strong lines of communication, which allow it to respond quickly and efficiently to customer and market requirements, as well as the public needs, and for the customers to receive consistent service, in order to successfully and consistently deliver what it is mandated to do. |
| b. Elaborates its efforts to interact with the communities in which they operate? |
Section 9.4. Recognition and Respect of Stakeholder’s Rights Established By Law or Through Mutual Agreements. The LRT A shall establish mechanisms and procedures to protect Stakeholders’ rights. Recognizing the vital contribution of its Stakeholders, it shall ensure that they have access to relevant, sufficient and reliable information on a timely and regular basis to be able to exercise their rights. Stakeholders shall have access to legal redress when their rights are violated. Section 9.5. Reporl on Stakeholders Relations. The LRTA shall communicate with its Stakeholders and the public at large on its Stakeholder policies and provide information on their effective implementation through, but shall not be limited to the following: 1. The LRTA’s Newsletter, “Pinoy Ride,” the LRTA official website: http://www.lrta.gov.ph, and the social network such as Facebook and Twitter, for announcements, transparency seal, other relevant information about programs, projects and activities of LRTA; LRTA Revised Manual of Corporate Governance Sections 9.4 and 9.5 |
| c. Ensures that its value chain is environmentally friendly or is consistent with promoting sustainable development? |
It is the policy of LRTA to promote a clean and properly sanitary working environment in compliance with the rules laid down under Republic Act No. 9003 (The Ecological Solid Waste Management Act of 2000). LRTA Policy on Proper Disposal of Solid or Domestic Wastes (2022 Update) Section 9.10 of the LRTA Revised Manual of Corporate Governance also discloses environmental policies/standards being observed by LRTA. |
| 2. Does the GOCC disclose the activities that it has undertaken to implement the above mentioned policies? | |
| a. Customer health and safety |
Section 9.9 of the LRTA Revised Manual of Corporate Governance discloses the following: Health and Safety. The LRTA shall aim to ensure a safe and healthy working environment for all its employees, outside contractors and visitors. It shall comply with all relevant local legislation or regulations, and best practice guidelines recommended by national health and safety authorities. |
| b. Interaction with the communities | |
| c. Environmentally-friendly value chain | |
| 3. Does the GOCC have a separate corporate social responsibility (CSR) report/section or sustainability report/section? |
Yes. Corporate Social Responsibility CSR Activities for CY 2023: |
| 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? | LRTA Public Relations Office
Monday – Friday For Feedback and Other Related Concerns |
| 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? |
Sections 9.9 & 9.10 of the LRTA Revised Manual of Corporate Governance LRTA Response Protocol for Biological Threats (COVID-19 Pandemic)* *LRTA COVID-19 Protocols are being adjusted in compliance with the latest guidelines issued by the DOH and IATF. LRTA List of Trainings for CY 2023 List of Trainings, Seminars, Webinars and Personnel Capacitation Activities LRTA as a caring and nurturing organization continuously developed the potentials and talents |
| b. Does the GOCC publish data relating to health, safety and welfare of its employee | |
| c. Does the GOCC have training and development programmes for its employees? |
List of Trainings, Seminars, Webinars amd Personnel Capacitation Activities LRTA as a caring and nurturing organization continuously developed the potentials and talents |
| d. Does the GOCC publish data on training and development programs for its employees? |
Yes. |
| 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? |
Whistle Blowing These policies and guidelines encourage confidence in reporting any wrongdoing and provide safeguards on the rights of the whistleblower and define the conditions for protecting the whistleblower so as to deter frivolous and false disclosure |
| b. Does the GOCC have procedures to protect an employee/person who reveals illegal/unethical behavior from retaliation? |
Any complaint or report against an officer or employee will be treated with utmost care and confidentiality. The LRTA is responsible for the protection of the whistleblower’s identity and whereabouts from any third party, except, as required by law and necessary or indispensable during the conduct of legal proceedings. The same level of confidentiality shall be observed by the whistleblower. The LRTA commit to protect the whistleblower from any criminal, civil or administrative liability arising On the same note, no retaliatory action shall be taken against a whistleblower such as, but not limited to, discriminatory action, including those made under the guise of policy and procedural determinations designed to avoid claims of victimization, reprimand, punitive transfer and the denial of work necessary for necessary for promotion, etc. |
II. DISCLOSURE AND TRANSPARENCY
| Question | Website Section/Link/LRTA’s Response | |
|---|---|---|
| 7. Quality of Annual Report Does the GOCC’s annual report disclose the following items: |
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| a. Corporate Objectives |
LRTA’s Performance Scorecard for CY 2023 Strategic Objectives (SO): |
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| b. Financial Performance Indicators |
LRTA’s Performance Scorecard for CY 2023 Financial Performance Indicators: SO 6 Sustainability of Financial Condition LRTA Performance Scorecard CY 2023 Other reportorial requirements can be accessed here: |
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| c. Non-financial Performance Indicators |
LRTA’s Performance Scorecard for CY 2023 Non-Financial Performance Indicators: SO 1 Increased Passenger Mobility and Reduced Commuter Time, Increase Productivity LRTA Performance Scorecard CY 2023 Other reportorial requirements can be accessed here: |
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| d. Details of whistle-blowing policy | LRTA Policy on Protected Disclosure and Reporting | |
| e. Biographical details (at least age, qualifications, date of first appointment, relevant experience, and any other directorships of listed companies) of directors/commissioners |
LRTA Board of Directors CY 2023 The two (2) Appointive Directorts of the LRTA Board, Administrator and Private Sector, respectively, do not have other appointments as Directors in other Boards. The other seven (7) directors are in Ex-Officio character by virtue of their appointments as Cabinet Secretaries, and that as such Cabinet Secretaries they are Ex-Officio members of Board of Directors of as many as government corporations, bodies, instrumentalities and entities created by law and which their position as Cabinet Secretaries are made Ex-Officio members of said corporations, bodies, instrumentalities and entities. |
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| f. Training and/or continuing education programme attended by each director/commissioner | LRTA List of Trainings for CY 2023 | |
| 8. Are the Annual Reports downloadable from the GOCC’s website? | LRTA Annual Reports can be accessed through this link: https://www.lrta.gov.ph/transparency |
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| 9. Corporate Governance Confirmation Statement | ||
| Does the Annual Report contain a statement confirming the company’s full compliance with the code of corporate governance where there is non-compliance, identify and explain reasons for each such issue? |
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| 10. Timely filing/release of annual/financial reports | ||
| a. Are the Audited Annual Financial Report/Statement released within 60 days upon receipt from COA? |
The Commission on Audit (COA) issued the Annual Audit Report of LRTA for Years Ended 31 December 2022 and 2021 on 01 June 2023. Said report was passed upon by the LRTA Board of Directors during its 30 June 2023 Meeting and was subsequently uploaded on the LRTA website on 27 June 2023. |
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| b. Is the Annual Report released within 90 days from release of Audited Financial Report? | ||
| c. Is 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? | The LRTA Statement of Management’s Responsibility for Financial Statements (MRFS) CY 2022 |
III. RESPONSIBILITIES OF THE BOARD
| Question | Website Section/Link/LRTA’s Response |
|---|---|
| 11. Corporate Vision/Mission | |
| a. Has the Board of Directors reviewed the vision and mission/strategy in the last financial year? |
Yes. The LRTA Board of Directors during its 09 November 2023 Meeting passed upon and approved the revision of the Authority’s Vision Statement. |
| b. Does the Board of Directors monitor/oversee the implementation of the corporate strategy? |
Yes. Section 3.8, Item 3 of the LRTA Revised Manual of Corporate Governance |
| 12. Did the GOCC achieve 90% in the PES? |
Yes. The LRTA obtained an overall score of 90.46% in the PES as validated by GCG. |
| 13. Code of ethics or conduct | |
| a. Are the details of the code of ethics or conduct disclosed? |
Yes. |
| b. Does the GOCC disclose that all Directors/Commissioners, senior management and employees are required to comply with the code? | Yes.
The Statement on the Inclusion and Compliance of the LRTA Board of Directors to the Code of Conduct for Officials and Employees of the LRTA signed and approved by the LRTA Administrator last 16 December 2020 states that the Members of the LRTA Board of Directors are required to abide by the provisions of the Code of Conduct for Officials and Employees of the LRTA |
| c. Does the company disclose how it implements and monitors compliance with the code of ethics or conduct? |
Yes. The Statement on the Inclusion and Compliance of the LRTA Board of Directors to the Code of Conduct for Officials and Employees of the LRTA signed and approved by the LRTA Administrator last 16 December 2020 states that the Members of the LRTA Board of Directors are required to abide by the provisions of the Code of Conduct for Officials and Employees of the LRTA Statement on the Inclusion and Compliance of the LRTA Board of Directors to the Code of Conduct for Officials and Employees of the LRTA |
| 14. Does the Board appoint a Nomination and Compensation/Remuneration Committee? |
Yes. LRTA Board of Directors Nomination and Remuneration Committee is responsible for installing and maintaining a process to ensure that Officers nominated or appointed meet and possess the qualification and none of the disqualifications mandated by law, rules and regulations. The Committee is also responsible for recommending to the GCG nominees for the shortlist in line with the LRTA’s Board composition and succession plan and qualified under the Fit and Proper Rule adopted by the GCG, including thereto as reference the qualifications provided under Authority’s Charter. The Committee is composed of four (4) members headed by the Private Sector Representative and members from the DBM, LRTA, and MMDA. Note: Composition of the Board Committees are agency-based and not on individual/person/officials. Under existing Board Policies, the representative of the agency concerned to sit in the Board and their respective duly designated technical staff are duly empowered to attend Board Committee Meetings. Nonetheless, the duly authorized actual individuals who attended meetings of the Committee which were in effect the bonafide Members of the Committee are properly indicated in the pertinent meeting attendance sheets. |
| 15. Did the Nomination and Compensation/Remuneration Committee meet at least twice during the year? |
Yes. LRTA Board of Directors Nomination and Remuneration Committee is responsible for installing and maintaining a process to ensure that Officers nominated or appointed meet and possess the qualification and none of the disqualifications mandated by law, rules and regulations. The Committee is also responsible for recommending to the GCG nominees for the shortlist in line with the LRTA’s Board composition and succession plan and qualified under the Fit and Proper Rule adopted by the GCG, including thereto as reference the qualifications provided under Authority’s Charter. The Committee is composed of four (4) members headed by the Private Sector Representative and members from the DBM, LRTA, and MMDA. Note: Composition of the Board Committees are agency-based and not on individual/person/officials. Under existing Board Policies, the representative of the agency concerned to sit in the Board and their respective duly designated technical staff are duly empowered to attend Board Committee Meetings. Nonetheless, the duly authorized actual individuals who attended meetings of the Committee which were in effect the bonafide Members of the Committee are properly indicated in the pertinent meeting attendance sheets. |
| 16. If yes, is the report of the Nomination and Compensation/Remuneration Committee publicly disclosed? |
Yes. |
| 17. Does the Board appoint an Audit Committee? |
Yes. The LRTA Board of Directors Audit Committee oversees, monitors and evaluates the sufficiency and effectiveness of the Authority’s internal control system, engage and provide oversight of the LRTA’s internal and external auditors. The Committee also reviews and approves the Authority’s internal audit plan and financial statements before submission to the Board. Lastly, it is the responsibility of the Audit Committee to develop a transparent financial management system that will ensure the integrity of internal control activities of LRTA through procedures and policies handbook that will be used by the entire Authority. The Committee is composed of three (3) members headed by the DOF representative to the LRTA Board and members from the NEDA and the Private Sector. Note: Composition of the Board Committees are agency-based and not on individual/person/officials. Under existing Board Policies, the representative of the agency concerned to sit in the Board and their respective duly designated technical staff are duly empowered to attend Board Committee Meetings. Nonetheless, the duly authorized actual individuals who attended meetings of the Committee which were in effect the bonafide Members of the Committee are properly indicated in the pertinent meeting attendance sheets. |
| 18. If yes, is the report of the Audit Committee publicly disclosed? |
Yes. |
| 19. Does at least one member of the Audit Committee have an audit, accounting or finance background (qualification or experience)? |
By virtue of the fact that seven (7) out of nine (9) Directors of the LRTA Board are Ex-Officio members, and that membership in the Board is based on law and along the line of the specific mandates of the cabinet departments concerned, the Board deemed that membership in the LRTA Board Committees be based on said specific mandate of the cabinet departments concerned. Nonetheless, please see CV of Usec. Catherine L. Fong (DOF Alternate Member) on the required compentence. |
| 20. Did the Audit Committee meet at least four times during the year? |
Yes. The Audit Committee held meetings on 18 April 2023, 10 October 2023, 13 November 2023, and 28 December 2023, respectively. |
| 21. Does the Board appoint a Risk Management committee? |
Yes. The Committee performs oversight risk management functions specifically in the areas of managing credit, market, liquidity, operational, legal, reputation and other risks of the LRTA. It is also the responsibility of the Committee to develop the Risk Management Policy of the Authority and ensure that risk management process and compliance are embedded in LRTA operations more especially at the Board and Management levels. Lastly, the Committee provides quarterly report and update to the Board on the key risk management issues and evaluation on investment proposals. The Committee is composed of four (4) members headed by the Private Sector Representative and members from the DBM, LRTA and MMDA.Note: Composition of the Board Committees are agency-based and not on individual/person/officials. Under existing Board Policies, the representative of the agency concerned to sit in the Board and their respective duly designated technical staff are duly empowered to attend Board Committee Meetings. Nonetheless, the duly authorized actual individuals who attended meetings of the Committee which were in effect the bonafide Members of the Committee are properly indicated in the pertinent meeting attendance sheets. |
| 22. If yes, is the report on Risk Management Committee publicly disclosed? |
Yes. |
| 23. Does at least one member of the Risk Management Committee have a background in finance and investments? |
By virtue of the fact that seven (7) out of nine (9) Directors of the LRTA Board are Ex-Officio members, and that membership in the Board is based on law along the line of the specific mandates of the cabinet departments concerned, the Board deemed that membership in the LRTA Board Committees be based on said specific mandate of the cabinet departments concerned. Nonetheless, please see brief CV of Dir. Elena Regina S. Brillantes (DBM Alternate Member) on the required compentence. |
| 24. Board meetings and attendance | |
| a. Are the Board of Directors meetings scheduled at the beginning of the year? (end of Q1) |
Yes. |
| b. Does the Board of Directors meet at least monthly? |
Yes. |
| c. Did the Board of Directors meet on at least 75% on their scheduled meetings? |
The Board of Directors were unable to meet on at least 75% on their scheduled meetings due to the changes in the assigned Board Members and their corresponding Alternates and their availability to attend the subject meetings. |
| d. Has each of the directors/commissioners attended at least 90% of all the board meetings held during the year? |
The two (2) Appointive Directors, LRTA Administrator Atty. Hernando T. Cabrera and Private Sector Representative Atty. Dimapuno R. Datu both attended at least 90% of the LRTA Board Meetings for CY 2023. |
| e. Did the Board of Directors meet separately at least once during the year without the President/CEO present? | |
| 25. Access to Information | |
| a. Does the GOCC have a policy that stipulated 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? | All documents included in the agenda of the LRTA Board Meeting are provided to the Board of Directors three working (3) days before the scheduled meeting. |
| b. Is the Board Secretary trained in legal, accountancy or company secretarial practices? |
Yes. Atty. Patrick Henry M. Villanueva |
| 26. Internal Audit | |
| a. Does the company have a separate internal audit function? | Yes.
Internal Audit To add value and to further improve the day-to-day operation of LRTA, the Internal Audit Department provides an independent and objective assurance and advisory services to LRTA. It likewise provides assurance to the Board, Management and other stakeholders that LRTA has appropriate and effective organizational and procedural controls. The conduct of internal audit activities is in accordance with the Standards for the Professional Practice of Internal Auditing Revised Manual of Corporate Governance pp. 17-18 |
| b. Does the appointment and removal of the internal auditor require the approval of the Audit Committee? | The appointment and removal of the Internal Auditor who is a government official (Dept. Manager level) is strictly governed by the Civil Service Commission laws specifically: 1. CSC Resolution No. 1800692 – 2017 Omnibus Rules on Appointments and Other Human Resource Actions (Revised July 2018) and 2. Revised Rules on Administrative Cases in the Civil Service, respectively.
Nothing in the said rules provide that their appointment/removal shall be subject to the recommendation of the LRTA Board of Directors Audit Committee. CSC Revised Rules on Administrative Cases in the Civil Service |
| 27. Risk Oversight | |
| a. Does the company disclose the internal control procedures/risks management systems it has in place? | |
| 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? | Yes. |
| c. Does the company disclose how key risks are managed? | LRTA Risk Management Guidelines |
| 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? | Yes. |
| 28. Board Chairman | |
| Do different persons assume the roles of Chairman and CEO? |
Yes. LRTA Board of Directors Chairman: Sec. Jaime J. Bautista |
| 29. Board of Directors Development | |
| a. Does the GOCC have the orientation programmes for new Directors? |
All newly appointed Directors undergo orientation program about the overall aspects of LRTA and on matters relative to their duties and functions as Board Member. They are also required to sign the LRTA Charter of Expectations upon assumption of office. In addition, are also required on annual basis to attend seminars, trainings and programs relative to Corporate Governance. Article 10 LRTA Revised Manual of Corporate Governance pp. 24 & 31 |
| b. Does the GOCC have a policy that encourages Directors/Commissioners to attend on-going or continuous professional education programmes? | Yes. |
| c. Did all Appointive Directors attend at least 1 training for the calendar year? |
Yes. |