Senators back sale of gov’t assets to raise funds for COVID-19 response
MANILA, Philippines — Senators are backing a plan to sell government assets to raise funds needed to fight the COVID-19 pandemic.
President Rodrigo Duterte raised the possibility of privatizing state-owned properties and companies in a public address aired Tuesday night as he noted the ballooning costs of containing the health crisis.
Data as of April 8 from the DOF showed that the total borrowings and grants obtained by the government to fight COVID-19 already amounted to $15.49 billion or P752 billion.
“I support the sale of government assets, like the Muntinlupa [New Bilibid Prison] and privatization of Pagcor (Philippine Amusement and Gaming Corp.) and PCSO (Philippine Charity Sweepstakes Office),” Senate Minority Leader Franklin Drilon said.
The senator called for an inventory of government-owned and -controlled corporations (GOCCs) to determine those that could be sold.
“We can review the GOCC list and decide which one should be privatized,” he said in a Viber message.
Sen. Panfilo Lacson said he was also open to the idea of selling government properties as the “extraordinary time calls for extraordinary measures.”
However, he cautioned that the government must be very careful so that it would not lose out on financial opportunities.
“While it is a mark of a true leader to consider any measure – no matter how extraordinary – to save us all, proper and prudent steps must be taken in consideration of the country’s long-term survival, thus avoiding that future generations of Filipinos will be left with nothing,” Lacson said in a statement.
“There are a number of GOCCs with real estate and other assets, but receive subsidies from the national government year in and year out mainly because they are mismanaged – if not being used as cash cows by unscrupulous officials,” he noted.
Audit, inventory needed
Lacson said an audit and inventory of all these assets should be done immediately.
“The government should retain only those that generate revenue and sell the rest. It bears repeating that this is an extraordinary time that calls for extraordinary measures, for the survival of our people and the whole country,” he said.
The sale of government assets is being handled by the Privatization Management Office (PMO), which is under the Department of Finance.
The Muntinlupa prison property is considered an ideal candidate for privatization as it can fetch a good price considering its size and location. As early as 2002, then-President Arroyo already issued a policy to sell the 400-hectare NBP compound and transfer the national penitentiary to Tanay, Rizal, or Fort Magsaysay in Nueva Ecija. The plan, however, was scuttled during the Aquino administration.
Dominguez said in September last year that the government was also pursuing the privatization of the commercial functions of Pagcor and PCSO to raise additional revenues and repay the debt pile that the government accumulated due to the pandemic.
Mining claims
There are other government assets that can be privatized. In October last year, Finance Secretary Carlos Dominguez III announced plans to sell state-owned mining assets to shore up government revenues.
According to a list on the PMO website, these include the transferred mining claims of Basay Mining Corp., Hercules Minerals and Oils Inc. and Marinduque Mining and Industrial Corp. as well as mining claims, machinery and equipment of Nonoc Mining and Industrial Corp. in Surigao.
Also on the list are mining assets of Aggregate Mining Exponent, Black Mountain Inc., Sta. Ines Mining and Steel Corp., and Trident Mining and Industrial Corp. that were transferred to PMO by Land Bank of the Philippines.
Sen. Juan Edgardo Angara, chair of the Senate finance committee, said the government must hold on to heritage properties such as the Coconut Palace in the Cultural Center of the Philippines complex in Pasay City.
“If we have to resort to selling government properties, let’s make sure we hold on to the heritage properties like CCP Coconut Palace,” he said in a Viber message.
Recto sees no need
But Senate President Pro Tempore Ralph Recto said the government might not need to go to that extreme.
“I don’t think there will be a need to sell government assets at this time. Just focus on vaccination roll out,” he said.
President Duterte first broached the sale of government assets in April last year, saying it could be a last resort to pay off the country’s foreign borrowings.
The remark prompted Drilon at the time to call for a review of state assets that could be sold off, saying the government could potentially collect P300 billion by privatizing the gaming industry based on earlier pronouncements of the finance department.
