Abolition of 36 ‘underperforming’ GOCCs sought

MANILA, Philippines—Cagayan de Oro Rep. Rufus Rodriguez is seeking the abolition of at least 36 “underperforming” government-owned and -controlled corporations (GOCCs), and government financial institutions (GFIs).

The lawmaker said top officials of these GOCCs and GFIs were enjoying hefty pay running to millions of pesos a year.

In House Bill No. 2867, Rodriguez said many of the 120 GOCCs and GFIs were “unnecessary, underperforming and losing,” and hence, should be abolished.

“Despite this, the taxpayers are still paying for their expenses and their officers’ and employees’ salaries,” he said in his explanatory note.

Rodriguez said the government continued to subsidize these, extending P7.28 billion from January to May alone, thus widening the budget deficit.

“It is high time that the government removed the excess fat and spend only on things that are truly vital to the country,” he said.

Topping his list were the Banaue Hotel and Youth Hostel, Batangas Land Co. Inc., BCDA Management and Holdings Inc., Cottage Industry Technology Center, DBP Data Center Inc., DBP Management Corp., DBP Maritime Leasing Corp., Freeport Service Corp., GY Real Estate Inc. and Human Settlements Development Corp.

Other GOCCs and GFIs on the list were Industrial Guarantee and Loan Fund, Kamayan Realty Corp., LBP Insurance Brokerage Inc., LBP Leasing Corp., Luzon Integrated Services Inc., Manila Gas Corp., Marawi Resort Hotel Inc., Masaganang Sakahan Inc., National Agribusiness Corp., National Precision Cutting Tools Inc.

National Slipways Corp., National Stevedoring and Lighterage Corp., National Trucking and Forwarding Corp., Natural Resources Development Corp., NDC Infrastructure Corp., Northern Foods Corp., Partido Development Administration, Philippine Aerospace Development Corp., Philippine Center for Economic Development, Philippine Convention and Visitors Corp.

Philippine Institute for Development Studies, Philippine Institute of Traditional and Alternative Health Care, Pinagkaisa Realty Corp., Tacoma Bay Shipping Co. Inc., Trade and Investment Development Corporation of the Philippines, and ZNAC Rubber Estate Corp.

Quoting a Commission on Audit report, Rodriguez said that in 2009 the pay of the key officials of all the 36 state firms totaled P57 million.

“If we abolish these, we will save P57 million,” he said in an interview, pointing out these were performing proprietary functions, not governmental functions. “We should let the private sector undertake these things,” he said.

For instance, top officials of Freeport Service Corp. had a total pay of P12.8 million in 2009; those of LBP Leasing Corp., P6.8 million; those of DBP Maritime Leasing Corp., P5 million; and those of BCDA Management and Holdings Inc., P4.9 million.

The lawmaker said he had not heard of these GOCCs and GFIs which appeared as mere spin-offs of bigger agencies.

“When the different departments come for the budget hearing, these are under departments. We will ask them about these,” he said.

In his bill, Rodriguez proposed that the functions of these abolished firms be transferred to the departments exercising the same duties, and that all their officers and employees be entitled to a separation pay equivalent to two-and-a-half months for every year of service. –TJ Burgonio, Philippine Daily Inquirer