Government-owned and controlled corporation

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A Government-owned and controlled corporation (GOCC), sometimes with an "and/or",[1] is a term in the Philippines used to describe government-owned corporations that conduct both commercial and non-commercial activity. Examples of the latter would be the Government Service Insurance System, a social security system for government employees. There are over 200 GOCCs.[2] GOCCs both receive subsidies and pay dividends to the national government.

Under the GOCC Governance Act (Republic Act 10149; Government Owned and Controlled Corporations (GOCC) Governance Act of 2011), GOCCs are overseen by the Governance Commission for Government-Owned or Controlled Corporations (GCG).[3] The Governance Commission is the "government’s central advisory and oversight body over the public corporate sector" according to the Official Gazette of the Philippine government.[4] The Governance Commission among other duties prepares for the President of the Philippines a shortlist of candidates for appointment by the president to GOCC boards.[3]

Many but not all GOCCs have their own charter or law outlining its responsibilities and governance.[5]

Finances

2014 operation subsidies and program funds that GOCCs received from the national government

GOCCs receive from the government "subsidies" and "program funds".[6] Subsidies cover the day-to-day operations of the GOCCs when revenues are insufficient while program funds are given to profitable GOCCs to pay for a specific program or project.[6]

Subsidies from the National Government in 2011 amounted to 21 billion Philippine pesos.[7] In the 2013 fiscal year, the national government gave P71.9 billion pesos to GOCCs in subsidies, nearly twice the 44.7 billion pesos that was programmed in the budget.[2] In 2014, 77.04 billion pesos was spent on GOCCs by the national government, 3% of which was classified as subsidies and 97% was classified as program funds.[6]

In 2013, on "GOCC Dividend Day", the Philippine government received 28-billion Philippine pesos in dividends and other forms of remittances from the 2012 operations of 38 GOCCs.[8] Eight GOCCs remitted 1 billion pesos each: Philippine Reclamation Authority (PRA)(P1 billion pesos), Philippine Ports Authority (PPA)(1.03-billion), Manila International Airport Authority (MIAA)(P1.54-billion), Philippine Amusement and Gaming Corporation (PAGCOR) (P7.18-billion), Power Sector Assets and Liabilities Management Corporation (PSALM)(P2-billion), Bases Conversion Development Authority (BCDA)(P2.30-billion), Development Bank of the Philippines (DBP) (P3.16-billion) and Land Bank of the Philippines (LBP) (P6.24-billion). Under Republic Act No. 7656, all GOCCs are required to “declare and remit at least 50% of their annual net earnings as cash, stock or property dividends to the National Government."[8] The Commission on Audit reports that in 2013 of the 219 profitable GOCCs, only 45 remitted a full 50% share of their dividends to the national treasury, leaving 174 others with unremitted government shares, amounting to more than P50 billion.[2] Dividends remitted were only one-tenth (1/10) of the total required by law according to the Commission.[2]

In 2014, on "GOCC Dividend Day", the Philippine government received 32.31 billion Philippine pesos worth of dividends and other remittances from 50 GOCCs.[9] Seven GOCCs submitted over a billion pesos each: Development Bank of the Philippines (DBP) with P3.616 billion; Power Sector Assets and Liabilities Management Corporation (PSALM) with P2.5 billion; Bases Conversion Development Authority (BCDA) with P2.107 billion; Manila International Airport Authority (MIAA) with P1.577 billion; Philippine National Oil Company-Exploration Corporation (PNOC-EC) with P1.5 billion; Philippine Ports Authority (PPA) with P1.422 billion; and Philippine Deposit Insurance Corporation (PDIC) with P1.05 billion.[9]

List of Government-owned and controlled corporation

See also: Category:Government-owned and controlled corporations

There are over 200 GOCCs.[2] Below is a partial list of GOCCs:[7][10]

See also

References

  1. ^ "Government-Owned and/or Controlled Corporations". Official Gazette. Republic of the Philippines. Retrieved 26 May 2015.
  2. ^ a b c d e "State-run corporations only remitted a tenth of dividends". BusinessWorld. 24 May 2015. Retrieved 26 May 2015.
  3. ^ a b Cayabyab, Marc Jayson (25 May 2015). "House passes DBP, LBP merger bill". Philippine Daily Inquirer. Retrieved 26 May 2015.
  4. ^ "President Aquino approves closure of 7 nonperforming GOCCs". Philippine national government. Official Gazette. 22 October 2014. Retrieved 26 May 2015.
  5. ^ "GCG marks third year as overseer of GOCC sector". Philippine national government. Official Gazette. 6 June 2014. Retrieved 26 May 2015.
  6. ^ a b c "GOCC 2014 OPERATING SUBSIDIES AND PROGRAM FUNDS". Governance Commission for GOCCs. Retrieved 26 May 2015.
  7. ^ a b Cabuag, V.S. (8 March 2012). "Government subsidies to GOCCs grew by 155% in 2011". Business Mirror. Retrieved 5 July 2012.
  8. ^ a b "President Aquino receives P28-billion representing dividend contributions from 38 Government-Owned and Controlled Corporation in Malacañang". Office of the President of the Philippines. 3 June 2013. {{cite news}}: |access-date= requires |url= (help)
  9. ^ a b "GOCCs remit P32.31B to National Treasury". Philippine national government. Official Gazette. 9 June 2014. Retrieved 26 May 2015.
  10. ^ Cabuag, V. S. (1 July 2012). "Subsidies to GOCCs declined in May". Business Mirror. Retrieved 5 July 2012.

External links

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