Abolition of 36 ‘non-performing’ GOCCs, GFIs sought

Two lawmakers on Tuesday sought for the abolition of at least 36 “non-performing and unnecessary" government owned and controlled corporations (GOCCs) and financial institutions (GFIs). In House Bill 2867, Cagayan de Oro Rep. Rufus Rodriguez and his brother Abante Mindanao party-list Rep. Maximo Rodriguez noted that taxpayers continue to pay for the expenses and salaries of the officials and employees of these underperforming and losing GOCCs and GFIs. They said the government extended P7.28 billion in subsidies to state-owned firms from January to May of 2010, or P2.25 billion more than the P5.03 billion recorded in the same period last year, based on data from the Department of Finance (DOF). “These subsidies are booked as expenses and put a strain on the government’s widening budget deficit. Consistent with [President Benigno Aquino III's] austerity measures, it is high time that the government removes the excess fats and spends only for things that are truly vital to the country," they said. Among the GOCCs and GFIs they want to abolish are the Banaue Hotel and Youth Hostel; Batangas Land Company Inc; BCDA Management and Holdings Inc; Cottage Industry Technology Center; DBP Data Center Inc; DBP Management Corporation; DBP Maritime Leasing Corporation; Freeport Service Corporation; GY Real Estate Inc; Human Settlements Development Corporation; Industrial Guarantee and Loan Fund. Also, Kamayan Realty Corporation; LBP Insurance Brokerage Inc; LBP Leasing Corporation; Luzon Integrated Services Inc; Manila Gas Corporation; Marawi Resort Hotel Inc; Masaganang Sakahan Inc; National Agribusiness Corporation;; National Precision Cutting Tools Inc; National Slipways Corporation; National Stevedoring and Lighterage Corporation; National Trucking and Forwarding Corporation; Natural Resources Development Corporation; NDC Infrastructure Corporation. The lawmakers also seek the abolition of Northern Foods Corporation; Partido Development Administration; Philippine Aerospace Development Corporation; Philippine Center for Economic Development; Philippine Convention and Visitors Corporation; Philippine Institute for Development Studies; Philippine Institute of Traditional and Alternative Health Care; Pinagkaisa Realty Corporation; Tacoma Bay Shipping Company; Trade and Investment Development Corporation of the Philippines and ZNAC Rubber Estate Corporation. They, however, did not provide explanation why these corporations are considered non-performing. Under the bill, officers and employees of the abolished GOCCs and GFIs will be given two and half months salary for each year of service as separation pay, while the functions and duties of the affected corporations will be transferred to the different departments of the government exercising the same or similar functions. The DOF, Department of Budget and Management (DBM) and the Commission on Audit shall issue the necessary rules and regulations for the implementation of the law and the necessary funding for the payment of the separation pay shall be included in the General Appropriations Act. - Amita O. Legaspi/KBK, GMANews.TV