Gov’t abolishes 7 more dormant state enterprises
MANILA, Philippines–President Aquino has ordered the closure of seven “non-performing and dormant” subsidiaries of government-owned and -controlled corporations (GOCCs).
In a statement on Wednesday, the Governance Commission for Government Owned or Controlled Corporations (GCG) said the President last August approved the dissolution of five subsidiaries of Philippine National Construction Corp. (PNCC): Alabang-Sto. Tomas Development Inc., CDCP Farms Corp., DISC Contractors Builders and General Services Inc., Tierra Factors Corp. and Traffic Control Products Corp.
These PNCC companies were abolished because “they were non-operational corporations.”
Also to be closed down are two subsidiaries of state-owned Philippine National Oil Company (PNOC), namely PNOC-Alternative Fuels Corp. and PNOC-Development and Management Corp.
The PNOC firms, meanwhile, “were recommended for abolition in the third quarter of this year as they are no longer achieving the objectives and purposes for which they were originally designed.”
According to GCG, the government will save a total of P447 million yearly with the abolition of the seven GOCCs.
“(GCG) will convene inter-agency technical working groups that will implement the abolition/dissolution such as: winding down of operations, disposition of assets and liabilities, closing of books, and the transfer of functions,” it said.
“Affected officers and employees will be given due benefits and separation pays pursuant to civil service rules and other existing laws,” it added.
Since GCG was established in 2011, it has already abolished 20 dormant and non-performing GOCCs as well as had classified 20 as “inactive or non-operational.”
