Support for a House bill seeking to abolish 36 underperforming government-owned and -controlled corporations (GOCCs) and government financial institutions (GFIs) has snowballed, with business groups saying that House Bill 2867 will remove if not lessen the rent-seeking behavior among state firms.
Its enactment was also seen as boosting the country’s chances of getting an investment-grade credit rating.
Bangko Sentral Gov. Amando Tetangco Jr. said the House bill and a related law, the GOCC Governance Act of 2011, are expected to help improve the government’s fiscal position by reducing financial losses of the government by underperforming state firms and at the same time help improve investor confidence in the country’s ability to meet its liabilities.
“The law will also help in the conduct of monetary policy as implementation of the law would reduce, if not totally eliminate, rent-seeking behavior,” Tetangco said in a statement.
Finance Secretary Cesar Purisima said laws seeking to streamline state firms would further strengthen the Aquino administration’s push for good governance.
The House bill had sought to abolish 36 state firms including the Banaue Hotel and Youth Hostel, the BatangasBatangas 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., 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.
Among the companies sought for abolition, the Partido Development Administration (PDA), for instance incurred losses beyond P100 million over the past two years alone. –Daily Tribune
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