<<<PRESS RELEASES

PRESIDENT AQUINO APPROVES CLOSURE OF 7 NONPERFORMING GOCCs

POSTED LAST 22 Oct 2014 - 10:39 am

More nonperforming and dormant GOCCs have been abolished as President Benigno S. Aquino III approved last August the closure of seven GOCCs following the recommendation of the Governance Commission for GOCCs (GCG), which is the primary regulatory agency for the country’s GOCCs. Under Republic Act 10149, the law which created it, the GCG is mandated to evaluate the performance of GOCCs and determine their relevance with current national development goals and economic realities.

The seven GOCCs facing closure are: PNOC Alternative Fuels Corporation (PNOC-AFC), PNOC Development and Management Corporation (PNOC-DMC), Alabang-Sto. Tomas Development Incorporated (ASDI), DISC Contractors Builders and General Services Incorporated (DCBGSI), Traffic Control Products Corporation (TCPC), CDCP Farms Corporation (CDCP-FC), and Tierra Factors Corporation (TFC). The first two are subsidiaries of the state-owned Philippine National Oil Company (PNOC) while the latter five are subsidiaries of the Philippine National Construction Corporation (PNCC).

PNOC-AFC and PNOC-DMC 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. ASDI, DCBGSI, CDCP-FC, TCPC, and TFC, on the other hand, were abolished since they were non-operational corporations.

The Governance Commission will convene inter-agency Technical Working Groups (TWGs) 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. Affected officers and employees will be given due benefits and separation pays pursuant to civil service rules and other existing laws.

For PNOC, the GCG expects that the closure of its two subsidiaries will mean improved efficiency in operations and annual cost savings of P210 million. On the other hand, PNCC is expected to gain at least P237 million with the dissolution of its non-performing subsidiaries.

Since its establishment as the government’s central advisory and oversight body over the public corporate sector in 2011, the GCG now has abolished 20 dormant or nonperforming GOCCs and has classified 20 more as inactive or nonoperational. It continues to study and monitor GOCCs to ensure that the sector becomes a significant tool for economic growth and development.

Contact:
Bea Nadine V. Barte 
(02) 328 – 2030 to 34 
bnvbarte@gcg.gov.ph 
www.gcg.gov.ph