Bill seeks to abolish 19 GOCCs, GFIs-A A +A
Monday, March 3, 2014
A BILL seeking to abolish 19 government-owned and controlled corporations (GOCCs) and government financial institutions (GFIs) has been filed recently at the House of Representatives.
House Bill 3807 of Cagayan de Oro Representative Rufus Rodriguez and his brother Abante Mindanao party-list Representative Maximo Rodriguez seeks to abolish certain GOCCs and GFIs with provisions for separation pay for its officers and employees.
"It is high time that the government removes the excess fat and spends only for things that are truly vital to the country," the Cagayan de Oro lawmaker said.
Under the bill, those proposed for abolition are: 1) Banaue Hotel and Youth Hotel; 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; and 19) ZNAC Rubber Estate Corporation.
Rodriguez said that all officers and employees of these GOCCs and GFIs would be given two and a half months salary for each year of service in their respective GOCCs and GFIs as separation pay, funding of which shall be included in the subsequent national budget.
He added that the functions and duties of the proposed to-be-abolished entities are to be transferred to the different departments of the government exercising the same or similar functions.
Rodriguez said the government has around 120 GOCCs and GFIs, many of which are unnecessary, underperforming and losing. However, he added, taxpayers are still paying for their expenses and their officers' and 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," Rodriguez said.
The bill authors lament that these subsidies are booked as expenses and continue to put a strain on the government's widening budget deficit. (Sunnex)