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PNoy abolishes 11 GOCCs, dissolves 14 others

By ROUCHELLE R. DINGLASAN, GMA News

President Benigno Aquino III abolished, in the last quarter of 2013, 11 government-owned and -controlled corporations (GOCCs) and dissolved 14 others, a state corporation watchdog said on Monday.

More state firms are in the conveyor belt leading to the chopping block, the Governance Commission for GOCCs also said.
There are about 116 GOCCs undergoing performance evaluation, GCG spokesman Paolo Salvosa told GMA News Online in a phone interview on Monday. Back in 2011, there were 157 state firms.
 
"GCG aims to reduce [the number of GOCCs] to less than 100 by the end of 2014 through abolition, privatization or merger," the state corporation watchdog said in a separate statement.
The state firms recently abolished were:
  1. Cottage Industry Technology Center
  2. Human Settlements Development Corp.
  3. National Agribusiness Corp. (NABCOR) 
  4. Natural Resources Development Corp. - Philippine Forest Corp.
  5. ZNAC Rubber Estate Corp. (ZREC)
  6. Southern Philippines Development Authority
  7. Philippine Fruits and Vegetables Corporation 
  8. San Carlos Fruits Corporation
  9. Philippine Agricultural Development and Commercial Corporation
  10. Bataan Technology Park Inc.
  11. PNOC Shipping and Transport Corporation 
The 14 dissolved state companies were identified as:  
  1. Manila Gas Corp. 
  2. PNOC Malampaya Corp. 
  3. Aviation Services and Training Institute
  4. Calauag Quezon Province Integrated Coconut Processing Plant
  5. Clark Polytechnic Dev’t Corp.
  6. First Centennial Clark Corporation
  7. GSIS Properties Inc. 
  8. Land Bank of the Philippines (LBP) Financial Services SpA
  9. LBP Remittance Company
  10. LBP Singapore Representative Office
  11. Paskuhan Dev’t Inc.
  12. Phil. Centennial Expo ’98 Corp.
  13. Philpost Leasing and Financing Corp.
  14. Metro Transit Inc.
The dissolved firms ceased to exist either by expiration of their corporate term or rendered non-operational or liquidated under the direction of the GCG. These companies were tagged as non-performing, thus, GCG asked the Securities and Exchange Commission not to extend the corporate life, the GCG spokesman said. "Affected employees are given separation pay amounting to around one month's salaray for every year of service, unless an administrative or criminal case is filed against them," the GCG said in a Monday news release. Five state firms that may be next in line for extinction according to the GCG statement are:   
  1. Alabang Sto. Tomas Development, Inc.;
  2. Tierra Factors Corp.;
  3. Traffic Control Products Corp.;
  4. DISC Contractors; and
  5. CDCP Farms Corporation.  
The GCG also recommended the abolition or privatization of 8 other state companies:  
  1. Batangas Land Co. Inc.
  2. GY Real Estate Inc.
  3. Kamayan Realty Corp.
  4. Marawi Resort Hotel Inc.
  5. NDC-Infrastructure Corp.
  6. Philippine Aerospace Development Corp.
  7. Pinagkaisa Realty Corp.
  8. Technology Resource Center
The TRC has been implicated as a conduit of funds transfers in the alleged pork barrel scam. "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," the GCG also said in its March 3 news release.
 
Some GOCCs namely NABCOR, ZREC and Philforest – linked to the alleged P10-billion pork barrel scam – have been previously reported as abolished. These companies were allegedly conduits of lawmakers in transferring Priority Development Assistance Fund, also called pork barrel, to bogus nongovernment organizations.
 
Salvosa said President Aquino has yet to approve any merger or privatization of GOCCs,
 
Earlier, Cagayan de Oro City Rep. Rufus Rodriguez and Abante Mindanao party-list Rep. Maximo Rodriguez filed House Bill 3807 seeking to scrap 19 GOCCs. 
 
The bill has been overtaken by events are some GOCCs named in it have been abolished, dissolved, or nearly cessation.  
 
Some GOCCs named in the bill are undergoing GCG evaluation. These include:  
  1. Banaue Hotel and Youth Hostel
  2. National Livelihood Development Corp.
  3. BCDA Management and Holdings Inc.
  4. Masaganang Sakahan Inc.
  5. Northern Foods Corp.
  6. Philippine Convention and Visitors Corp.
  7. Trade and Investment Development Corp. of the Philippines
GCG said the Freeport Service Corp., which was also listed in the bill, is not under their jurisdiction. – VS/ELR, GMA News
Tags: goccs, pnoyabolishesgoccs
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