14 GOCCs face the ax, says GCG
Fourteen state-run corporations are being assessed by the Governance Commission for Government Owned or Controlled Corporations (GCG) to determine if these should be abolished, privatized or merged with other GOCCs.
In a statement on Wednesday, the GCG noted that following its establishment under the Aquino administration in 2011, the President had already approved the abolition of 22 GOCCs since 2012, based on the commission’s recommendations.
Out of the 102 state-run firms being monitored by the GCG, “14 more GOCCs are being studied for abolition, privatization, or merger,” it said.
The Inquirer sought a list of the 14 GOCCs under evaluation, but the GCG declined to name them.
The GCG also said there was no timetable when these GOCCs could be abolished, merged or privatized.
As of September, the following GOCCs were dissolved during the Aquino administration: Alabang-Santo Tomas Development Inc.; Bataan Technology Park Inc.; CDCP Farms Corp.; Cottage Industry Technology Center; Disc Contractors, Builders and General Services Inc.; HGC Subic Corp.; Human Settlements Development Corp.; National Agri-Business Corp.; NIA Consult Inc.; Philippine Fruits and Vegetables Industries Inc.; Philippine Agricultural Development and Commercial Corp.; Philippine Forest Corp.; PNOC Alternative Fuel Corp.; PNOC Development and Management Corp.; PNOC Shipping and Transport Corp.; San Carlos Fruits Corp.; Technology Resource Center; Tierra Factors Corp.; Traffic Control Products Corp.; Zamboanga National Agricultural College-Rubber Estate Corp.; People’s Credit and Finance Corp.; and National Livelihood Development Corp.
“I am sure that if you count the number of companies that we propose to close and actually closed, this is the most ever of an administration. And that requires political will,” Finance Secretary Cesar V. Purisima was quoted by the GCG as saying during its anniversary celebration last month.
Also, Purisima “emphasized that there are still many opportunities for reform, particularly in benchmarking GOCCs with the private sector for purposes of performance monitoring and dividend collection,” the GCG said.
The GCG recommends the closure of “dormant and non-performing” GOCCs, while also classifying a number of state-run corporations as “inactive or non-operational.”
The GCG was formed under Republic Act No. 10149 or the GOCC Governance Act of 2011, which mandates the commission “to act as a central advisory, monitoring, and oversight body with authority to formulate, implement and coordinate policies” governing GOCCs, government financial institutions, government corporate entities, as well as government instrumentalities with corporate powers, it noted on its website.
