Seven nonperforming and dormant government-owned or -controlled corporations (GOCCs) have been ordered closed by President Aquino on the basis of a recommendation from the Governance Commission for GOCCs (GCG).
The seven GOCCs facing closure are PNOC Alternative Fuels Corp., PNOC Development and Management Corp. (PNOC-DMC), Alabang-Santo Tomas Development Inc., DISC Contractors Builders and General Services Inc., Traffic Control Products Corp., CDCP Farms Corp., and Tierra Factors Corp.
The first two are subsidiaries of the state-owned Philippine National Oil Co. (PNOC), while the latter five are subsidiaries of the Philippine National Construction Corp. (PNCC).
PNOC-AFC and PNOC-DMC were recommended for abolition in the third quarter of this year because they are no longer achieving the objectives for which they were originally established. Their abolition is expected to result in an annual savings of P210 million for PNOC.
The five subsidiaries of PNCC, on the other hand, were abolished because they are already non-operational.
PNCC is expected to gain at least P237 million with the dissolution of the nonperforming subsidiaries.
The GCG will convene an inter-agency technical working group to effect the winding down of operations of the GOCCs, including the disposition of its assets and liabilities, and the transfer of functions to other government instrumentalities.
Since its establishment in 2011 as the government’s central advisory and oversight body, the GCG has abolished 20 dormant or non-performing GOCCs, and has classified 20 more as inactive or non-operational.
David Cagahastian