25 non-performing, unnecessary GOCCs abolished means BUSINESS

MANILA -- President Benigno Aquino III has abolished 25 government-owned and controlled corporations (GOCCs), the Governance Commission on GOCCs (GCG) said in a statement Monday.

Right now, GCG actively monitors a total of 116 GOCCs, which it aims to reduce to fewer than 100 by the end of 2014 through abolition, privatization, or merger.

Following the the proposal of Representatives Rufus Rodriguez of Cagayan de Oro and his brother Abante Mindanao party-list Maximo Rodriguez contained in House Bill 3807, abolished were:

  • National Agribusiness Corp. (NABCOR)
  • Zamboanga del Norte Rubber Estate Corp. (ZREC)
  • Human Settlements Development Corp. (HSDC)
  • Philippine Forest Corp. (PFC)
  • Cottage Industry Technology Center (CITC)

The GCG noted that President Aquino also abolished these six GOCCs not proposed by lawmakers:

  • Southern Philippines Development Authority (SPDA)
  • Philippine Fruits and Vegetables Corporation (PFVC)
  • San Carlos Fruits Corporation (SCFC)
  • Philippine Agricultural Development and Commercial Corporation (PADCC)
  • Bataan Technology Park Inc. (BTPI)
  • PNOC Shipping and Transport Corporation (PNOC-STC)

Also, these 14 GOCCs were actually dissolved-by-expiration-of-corporate-term/rendered non-operational/liquidated under the direction of the Governance Commission on GOCCs:

  • Manila Gas Corp. (MGC)
  • PNOC Malampaya Corp. (PNOC-MC)
  • Aviation Services and Training Institute (ASTI)
  • Calauag Quezon Province Integrated Coconut Processing Plant (CQPICPP)
  • Clark Polytechnic Development Corporation (CPDF)
  • First Centennial Clark Corporation (FCCC)
  • GSIS Properties Inc.
  • LBP Financial Services SpA
  • LBP Remittance Company
  • LBP Singapore Representative Office
  • Paskuhan Development Inc.
  • Phil. Centennial Expo ’98 Corp.
  • Philpost Leasing and Financing Corp. (PLFC)
  • Metro Transit Inc. (MTI)

Outside GCG coverage

The GCG said that six more GOCCs covered in the Rodriguez bill are outside GCG jurisdiction. These are:

  • Banaue Hotel and Youth Hostel
  • BCDA Management and Holdings Inc.
  • Masaganang Sakahan Inc.
  • Northern Foods Corp.
  • Tourism Promotions Board (referred to as Philippine Convention and Visitors Corp.)
  • Trade and Investment Development Corp. (now PhilEXIM)

However, GCG regularly evaluates these six GOCCs -- together with National Livelihood Dev’t Corp. (NLDC), which was also covered by the Bayan Muna recommendation, and Freeport Services Corp., a subsidiary of the Subic Bay Metropolitan Authority (SBMA) -- based on financial viability and relevance to current national development plans.

7 other GOCCs on the chopping block

Meanwhile, GCG also recommended the abolition or privatization of 12 GOCCs. They are:

  • Marawi Resort Hotel Inc. (MRHI)
  • Philippine Aerospace Dev’t Corp. (PADC)
  • NDC-Philippine Infrastructure Corporation
  • Batangas Land Co.
  • Kamayan Realty Corp.
  • GY Real Estate Inc.
  • Pinagkaisa Realty Corp., together with Technology Resources Center (TRC), which is covered by the Bayan Muna recommendation for abolition
  • Alabang Sto. Tomas Development Inc. (ASDI)
  • Tierra Factors Corp. (TFC)
  • Traffic Control Products Corp. (TCPC)
  • DISC Contractors
  • CDCP Farms Corporation

The GCG said the streamlining of non-performing or unnecessary GOCCs is a key objective in GCG’s strategic roadmap to improving efficiency and transforming the GOCC Sector into a significant tool for economic growth and development.

Meanwhile, affected employees are given separation pay amounting to around one month’s salary for every year of service, unless an administrative or criminal case is failed against them, the GCG added.