Government-owned and controlled corporation

The phrase 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 corporations

See also: Category:Government-owned and controlled corporations of the Philippines

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

This list is incomplete; you can help by expanding it.

See also

References
  1. "Government-Owned and/or Controlled Corporations". Official Gazette. Republic of the Philippines. Archived from the original on 26 May 2015. Retrieved 29 July 2017.
  2. Lopez, Melissa Luz T. (25 May 2015). "State-run corporations only remitted a tenth of dividends". BusinessWorld. Retrieved 29 July 2017.
  3. 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". Official Gazette. 22 October 2014. Retrieved 26 May 2015.
  5. "GCG marks third year as overseer of GOCC sector". Official Gazette. 6 June 2014. Retrieved 26 May 2015.
  6. "GOCC 2014 OPERATING SUBSIDIES AND PROGRAM FUNDS". Governance Commission for GOCCs. Archived from the original on 26 May 2015. Retrieved 26 May 2015.
  7. Cabuag, V.S. (8 March 2012). "Government subsidies to GOCCs grew by 155% in 2011". Business Mirror. Retrieved 5 July 2012.
  8. "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. Archived from the original on 6 August 2013. Retrieved 26 May 2015.
  9. "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. Archived from the original on 29 November 2014. Retrieved 5 July 2012.
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