Palace: Proposed abolition of 19 GOCCs needs to be studied first

(Updated 2:53 p.m.) Two lawmakers have called for the abolition of 19 "underperforming" government-owned and -controlled corporations (GOCCs), including some linked to the P10-billion pork barrel scam, but Malacañang said this should be studied first.

"Kailangang pag-aralan ito ng GCG o Governance Commission on GOCCs na siyang may mandato na tiyakin ang mainam na pagganap sa tungkulin ng mga korporasyon ng pamahalaan," Presidential Communications Operations Office head Herminio Coloma Jr. told reporters in a text message.

During a press conference on Monday, presidential spokesperson Edwin Lacierda likewise said the GCG is in charge of evaluating the performance of every GOCC under its watch.
 
"At the very least, yung mga GOCC that [are] under their governance, they are evaluating their performance," he said.

He added that they already have recommendations for the abolition of some, among them the ZNAC Rubber Estate Corporation.

"So ito po ay continuing evaluation by the GCG in looking at the performance of each and every GOCC," Lacierda said.

The Palace officials issued the statement after Cagayan de Oro City Rep. Rufus Rodriguez and Abante Mindanao party-list Rep. Maximo Rodriguez filed House Bill 3807, which seeks to abolish 19 GOCCs and government financial institutions (GFI) for underperforming or losing money.

Among these GOCCs and GFIs are:
 

• Banaue Hotel and Youth Hostel;
• Batangas Land Co., Inc.;
• BCDA Management and Holdings, Inc.;
• Cottage Industry Technology Center;
• Freeport Service Corp.;
• GY Real Estate, Inc.;
• Human Settlements Development Corp.;
• Kamayan Realty Corp.;
• Marawi Resort Hotel, Inc.;
• Masaganang Sakahan, Inc.
• National Agribusiness Corp.;
• Natural Resources Development Corp.;
• NDC-Infrastructure Corp.;
• Northern Foods Corp.;
• Philippine Aerospace Development Corp.;
• Philippine Convention and Visitors Corp.;
• Pinagkaisa Realty Corp.;
• Trade and Investment Development Corp. of the Philippines; and
• ZNAC Rubber Estate Corp.

Citing records from the Department of Finance (DOF), the two lawmakers noted that the government has spent P7.28 billion in subsidies to GOCCs and GFIs from January to May 2013 even though several of them are considered “unnecessary and underperforming.”

According to the lawmakers, the subsidies are booked as expenses and continue to put a strain on the government's widening budget deficit.

"Consistent with the Aquino administration's austerity measures, it is high time that the government removes the excess fat and spends only for things that are truly vital to the country," they said.

The pork barrel scam refers to the alleged funneling of billions in Priority Development Assistance Fund (PDAF) by some lawmakers to bogus non-government organizations linked to detained businesswoman Janet Lim-Napoles.

Should the measure be passed into law, the functions and duties of the proposed to-be-abolished entities will be transferred to the different departments of the government exercising the same or similar functions.

The DOF, the Department of Budget and Management and the Commission on Audit will be tasked to issue the necessary rules and regulations necessary for the full implementation of the proposed statute. — with Xianne Arcangel/KBK, GMA News