Lawmakers want deadweight GOCCs abolished
MANILA, Philippines – Lawmakers are pushing for the abolition of 19 government-owned and controlled corporations (GOCCs) and government financial institutions (GFIs) deemed “unnecessary, underperforming and losing.”
Cagayan de Oro Rep. Rufus Rodriguez. INQUIRER FILE PHOTO
“Consistent with the Aquino administration’s austerity measures, it is high time that the government removes the excess fat and spends only for things that are truly vital to the country,” Cagayan de Oro City Representative Rufus Rodriguez and Abante Mindanao Representative Maximo Rodriguez said in a statement.
The two solons have filed House Bill (HB) 3807, which aims to abolish the following GOCCs and GFIs:
1) Banaue Hotel and Youth Hostel
2) Batangas Land Company, Incorporated
3) BCDA Management and Holdings, Incorporated
4) Cottage Industry Technology Center
5) Freeport Service Corporation
6) GY Real Estate, Incorporated
7) Human Settlements Development Corporation
8) Kamayan Realty Corporation
9) Marawi Resort Hotel, Incorporated
10) Masaganang Sakahan, Incorporated
11) National Agribusiness Corporation
12) Natural Resources Development Corporation
13) NDC-Infrastructure Corporation
14) Northern Foods Corporation
15) Philippine Aerospace Development Corporation
16) Philippine Convention and Visitors Corporation
17) Pinagkaisa Realty Corporation
18) Trade and Investment Development Corporation of the Philippines
19) ZNAC Rubber Estate Corporation (ZREC)
The authors said many of the government’s 120 GOCCs and GFIs are unnecessary and underperforming but are still being supported by the government through taxpayer’s money. They said the public still pays for their expenses and their employees’ salaries.
“This is aside from the P7.28 billion that the government extends to these state-owned subsidiaries as subsidies from January to May, or P2.25 billion more than the P5.03 billion recorded in the same period in 2013,” they said.
Under HB 3807, officers and employees of the abolished GOCCs and GFIs will receive separation pay equivalent to two and a half months salary for each year of service. The amount will be included in the general appropriations act.
ZREC, among the GOCCs tagged in the pork barrel scam, was already abolished last month because of “financial viability and relevance to national development plans.”
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