PNoy gives the ax to 11 GOCCs

Posted at 03/03/2014 5:08 PM | Updated as of 03/03/2014 9:06 PM

MANILA (UPDATED) - President Aquino has given the go-ahead to abolish 11 government-owned and -controlled corporations (GOCCs), including some that were linked to the pork barrel scam.

In a statement posted on the Official Gazette website, the Governance Commission for GOCC's said: "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 Development. Corp. (HSDC), Philippine Forest Corp. (PFC), and Cottage Industry Technology Center (CITC)."

NABCOR and ZREC, along with the Philippine Forest Corporation, have been linked to the pork barrel scam and were already ordered abolished back in January.

Aside from these, President Aquino also approved the abolition of the following six GOCCs not appearing in the bill: Southern Philippines Development 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).

Another GOCC Linked to the pork barrel scam, the Technology Resource Center, whose executive Dennis Cunanan is now considered a whistleblower in the pork barrel scam, is among another 7 out of the 19 GOCCs cited in the Rodriguez bill that have also been recommended for abolition or privatization.

The others are Marawi Resort Hotel Inc. (MRHI), Philippine Aerospace Development Corp. (PADC), NDC-Philippine Infrastructure Corporation, Batangas Land Co., Kamayan Realty Corp., GY Real Estate, Inc., and Pinagkaisa Realty Corp.

Yet another GOCC linked to the pork barrel scam, the National Livelihood Development Corporation, is among 6 other GOCCs now being evaluated by the GCG: They are 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]).

They are part of the GCG’s regular sector-wide evaluation of GOCCs based on financial viability and relevance to current national development plans.

However, Freeport Services Corp., a subsidiary of the Subic Bay Metropolitan Authority (SBMA), is outside the jurisdiction of the Governance Commission.

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

Fourteen GOCCs, meantime, were actually dissolved-by-expiration-of-corporate-term/ rendered non-operational/ liquidated under the direction of the Governance Commission.

These are:

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 Development Corp. (CPDF),

First Centennial Clark Corporation (FCCC),
GSIS Properties, Inc.,
LBP Financial Services SpA,
LBP Remittance Company,
LBP Singapore Representative Office,

Paskuhan Development Inc.,
Philippine Centennial Expo '98 Corp.,
Philpost Leasing and Financing Corp. (PLFC), and
Metro Transit, Inc. (MTI).

Presidential spokesperson Edwin Lacierda said the Governance Commission for GOCCs is now evaluating the performances of the state companies.

"The GCG is in charge of evaluating the performance of each and every GOCC under its watch. At the very least, iyung mga GOCC that (are) under their governance, they are evaluating their performance. So ito po ay continuing evaluation by the GCG," he said.

Government lists some 116 GOCCs actively being monitored, which GCG aims to reduce to less than 100 by the end of 2014 through abolition, privatization or merger.

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 filed against them.

Some GOCCs have been linked to the pork barrel scam, allegedly as conduits for the bogus projects funded from lawmakers' Priority Development Assistance Fund allocations.