Aquino abolishes 6 GOCCs and poised to dismantle more | Inquirer News

Aquino abolishes 6 GOCCs and poised to dismantle more

President Benigno Aquino III. MALACANANG FILE PHOTO

MANILA, Philippines — President Aquino has abolished six government-owned and controlled corporations and has approved the abolition of more as part of an ongoing crackdown on “non-performing” or “unnecessary” firms operating under the bureaucracy.

The Governance Commission of GOCCs (GCG) said on Monday it has been “actively” monitoring 116 such corporations, with the aim “to reduce [the number] to less than 100 by the end of 2014 through abolition, privatization or merger.”


“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,” it said in a statement.

“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 failed against them.”


The President has given the go-signal to abolish six GOCCs, namely: the 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 the PNOC Shipping and Transport Corporation (PNOC-STC).

Cagayan De Oro Rep. Rufus Rodriguez earlier filed a bill seeking to dissolve 19 state companies, including two that allegedly figured in the P10-billion pork barrel scam—the ZNAC Rubber Estate Corp. (ZREC) and the National Agribusiness Corp. (Nabcor).

Last year, the President approved the termination of ZREC and Nabcor, including the Human Settlements Dev’t. Corp. (HSDC), Philippine Forest Corp. (PFC), and the Cottage Industry Technology Center (CITC).

Of those included in the Rodriguez list, eight more had been recommended for abolition, according to the GCG.

These are the Marawi Resort Hotel Inc. (MRHI), Philippine Aerospace Dev’t Corp. (PADC), NDC-Philippine Infrastructure Corporation, Batangas Land Co., Kamayan Realty Corp., GY Real Estate, Inc., Pinagkaisa Realty Corp., and the Technology Resources Center (TRC).

TRC chief Dennis Cunanan earlier applied to become state witness, alleging that at least P600 million worth of pork barrel had been channeled through the agency while he was serving as its deputy head.

The GCG said it had also recommended for “abolition/privatization” the Alabang Sto. Tomas Development, Inc. (ASDI), Tierra Factors Corp. (TFC), Traffic Control Products Corp. (TCPC), DISC Contractors, and the CDCP Farms Corporation.


The GCG said six more companies listed in the Rodriguez bill were part of the commission’s “regular sector-wide evaluation of GOCCs based on financial viability and relevance to current national development plans.”

These are the 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].

Also under evaluation is the National Livelihood Dev’t Corp. (NLDC), which was also allegedly listed as an implementing agency for bogus non-government organizations put up by Janet Lim Napoles.

Fourteen of the state companies had been “actually dissolved-by-expiration-of-corporate-term, rendered non-operational, or liquidated under the direction” of the GCG.

These were the 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 Dev’t Corp. (CPDF), First Centennial Clark Corporation (FCCC), GSIS Properties, Inc., LBP Financial Services SpA, LBP Remittance Company, LBP Singapore Representative Office, Paskuhan Dev’t., Inc., Phil. Centennial Expo ’98 Corp., Philpost Leasing and Financing Corp. (PLFC), and the Metro Transit, Inc. (MTI).


GOCCs defend P2.3B bonuses for employees

3 GOCCs linked to pork scam abolished

Your subscription could not be saved. Please try again.
Your subscription has been successful.

Subscribe to our daily newsletter

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.

Read Next
Don't miss out on the latest news and information.

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

TAGS: Benigno "Noynoy" Aquino III, executive department, Governance Commission of GOCCs, government funds, government owned and controlled corporations, News, Philippine Government, Philippine president, Pork barrel, pork barrel scam, priority development assistance scam
For feedback, complaints, or inquiries, contact us.
Your subscription could not be saved. Please try again.
Your subscription has been successful.

News that matters

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.

© Copyright 1997-2023 | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.