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06/09/2013: DOF formalizes cluster management to spur reform

From the Department of Finance

Intent on streamlining and improving processes at the Finance department, Secretary Cesar Purisima recently issued an order to form management clusters in the Department of Finance to strictly enforce the agency’s varied functions.

“By formalizing the cluster system which we have been using for the past three years, we will enhance both accountability and transfer of expertise vertically throughout the DOF and its attached agencies,” Purisima said, noting that he was keen on reflecting management techniques from the private sector.

Purisima pointed out that the main function of the cluster system was to ensure visibility of all DOF activities throughout the Department and its attached agencies, thus enhancing transparency in its operations and reporting. The four clusters of the department will each be overseen by a designated head who will assume the role of primary coordinator for all operations and policy engagements under their corresponding clusters.

Bureau of Internal Revenue (BIR) Commissioner Kim Jacinto-Henares heads the Revenue Cluster, which covers the major revenue-collecting agencies of the DOF, including the BIR and the Bureau of Customs. Offices that support government revenue collection, such as the Bureau of Local Government Finance and National Tax Research Center will fall under the Revenue Cluster’s purview as well.

National Treasurer Rosalia De Leon leads the Liability Management and Capital Markets Development Cluster, which coordinates the government’s debt management activities done through the Bureau of Treasury as well as through official development assistance. The development of capital markets through the Insurance Commission, Securities and Exchange Commission, and Philippine Deposit Insurance Commission are also responsibilities of this cluster.

Finance Undersecretary John Philip Sevilla heads the the government’s engagement in privatization functions, Public-Private Partnerships (PPPs), and government-owned and controlled corporations (GOCCs) issues and affairs.

Assistant Secretary and Chief of Staff to the Secretary Ma. Lourdes Recente, will cover the DOF’s internal administration affairs, such as human resource and personnel development programs.

“As we move forward with our cluster model, we hope that its viability can be observed and adopted by other government organizations that find it useful,” Purisima said.