<<<PRESS RELEASES

NON-PERFORMING AND UNNECESSARY GOCCs ABOLISHED

POSTED LAST 03 Mar 2014 - 01:20 pm

In the last quarter of 2013, President Benigno S. Aquino III already approved the abolition of five (5) of the 19 GOCCs proposed for abolition in House Bill 3807 by Representatives Rufus Rodriguez and Maximo Rodriguez, namely: National Agribusiness Corp. (NABCOR), Zamboanga del Norte Rubber Estate Corp. (ZREC), Human Settlements Dev’t. Corp. (HSDC), Philippine Forest Corp. (PFC), and Cottage Industry Technology Center (CITC).

The Governance Commission also recommended the abolition/privatization of another seven (7) out of the 19 GOCCs cited in the Rodriguez bill: 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.

The other six (6) GOCCs covered in the Rodriguez bill (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.], and Trade and Investment Development Corp. [now PhilEXIM]) are part of the GCG’s regular sector-wide evaluation of GOCCs based on financial viability and relevance to current national development plans, together with National Livelihood Dev’t Corp. (NLDC) which was also covered by the Bayan Muna recommendation. Freeport Services Corp., a subsidiary of the Subic Bay Metropolitan Authority (SBMA), is outside the jurisdiction of the Governance Commission.

President Aquino also approved the abolition of the following six (6) GOCCs not appearing in the bill: Southern Philippines Dev’t. 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), and PNOC Shipping and Transport Corporation (PNOC-STC).

The Governance Commission has also recommended for abolition / privatization the following five (5) GOCCs: Alabang Sto. Tomas Development, Inc. (ASDI), Tierra Factors Corp. (TFC), Traffic Control Products Corp. (TCPC), DISC Contractors, and CDCP Farms Corporation.

Finally, the following fourteen (14) GOCCs were actually dissolved-by-expiration-of-corporate-term/ rendered non-operational/ liquidated under the direction of the Governance Commission: 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 Dev’t Corp. (CPDF), First Centennial Clark Corporation (FCCC), GSIS Properties, Inc., LBP Financial Services SpA, LBP Remittance Company, LBP Singapore Representative Office, Paskuhan Dev’t., Inc., Phil. Centennial Expo ’98 Corp., Philpost Leasing and Financing Corp. (PLFC), and Metro Transit, Inc. (MTI).

There are currently one hundred sixteen (116) GOCCs actively being monitored, which GCG aims to reduce to less than 100 by the end of 2014 through abolition, privatization or merger. The streamlining of non-performing and/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.

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.

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