• 50 GOCCs to be scrapped

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    AT least 50 more government-owned and -controlled corporations (GOCCs) will be abolished before President Benigno Aquino 3rd ends his term, officials of the Governance Commission on GOCCs (GCG) said on Friday.

    The scrapping of the state corporations cropped up when GCG officials led by Chairman Cesar Villanueva faced reporters in Malacañang to deny reports that the commission granted unauthorized allowances and bonuses worth P2.3 billion to 30 GOCCs.

    The commission “has not granted or authorized, much less it has recommended to the President, any increase in the rates of compensation, bonuses, allowances and other benefits within the GOCC sector,” Villanueva said.

    Interview after the briefing, Commissioner Rainier Butalid said that far from even increasing the perks of GOCC officials, the commission had even trimmed the number of GOCCs significantly.

    “We started with 158 and now it’s down to 120 and it is still decreasing,” Butalid said.

    Villanueva and Butalid said many GOCCs are on the chopping block for a number of reasons, including being “cash cows,” redundancy or duplication of functions, or sheer insignificance.

    They did not identify the 28 agencies that have been scrapped but said among those up for abolition are GOCCs involved in recent controversies, among them the National Agribusiness Corp. and Zamboanga Rubber Estate Corp. whose officials were accused of funneling lawmakers’ pork barrel to bogus non-government organizations linked to Janet Lim-Napoles.

    Also to be shutdown is the Philippine Forest Corp., which is similarly linked to corruption allegations.

    Butalid told The Manila Times the commission was considering reducing the number of GOCCs to “80 or less.”

    “There will be more because apart from abolition, we will also see mergers. Many GOCCs, which share the same functions would be joined. Some of these agencies are big,” Butalid said, without elaborating.

    Vilanueva dismissed as “inaccurate” reports about the supposed approval by GCG of more than P2 billion in allowances and bonuses despite a presidential moratorium on increases in GOCC perks since 2010.

    He said any increase will be allowed only when “specifically authorized by the President himself.”

    Villanueva said the prevailing practices of the GOCCs are rooted in the administration of former President Gloria Arroyo.

    “The bulk of the COA reported unauthorized allowances, bonuses and benefits amounting to P2.3-billion granted to 30 GOCCs relate to practices or existing rates that were carried over from the previous administration and were therefore inherited by the GOCC governing boards appointed by the current administration,” he said.

    “The current GOCC boards were confronted—once they were appointed into office by the President, were actually confronted with the basic dilemma on how to discontinue the grant of the unauthorized salaries, benefits and bonuses of their officers and employees without disrupting public service. The situation was further exacerbated in a number of cases where the legal positions taken on the grants were contrary to the COA position,” Villanueva said.

    He said COA did not issue a notice of disallowance on any of the items mentioned in its report, which was released when the issues on allowances and bonuses “were still in the process of being individually sorted out.”

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    8 Comments

    1. Can they please identify which GOCCs they have closed, when and why? What happened to the personnel, equipment, assets as well as budget? What other 50 GOCCs are planned to be dissolved or merge? Can they please tell us since we are supposed to be the “Boss”. Saying that 30 GOCCs are gone is not enough. I could say the same thing myself without proof and evidence that it was actually done. And Please. pleae, please – sirang plaka na iyang “The excuse that “these practices were started by GMA is inutile and self-serving. If the person in charge can not do the job then fire him and get someone who can. The BS Aquino govt has only 2-1/2 years left and still they can not povide what they have promised the public. Give us “results” and we want it yesterday – we the people , your Boss !!!

      • President Aquino III must issue a Presidential Decree or Order that starting next month, new government employees will only recieve their hourly or monthly pay every two weeks or each month and no one will receive any kind of bonus or allowances. In so many words, a new employee will sign his or her contract that he/she will not demand bonus or allowance in any form in the future.

    2. GOCCS are only mushroom during Arroyos term to begin with to use for loser candidate to have position and pocketed or diverted hard cash as their cashiers, Now there already unmasked one by one to exposed their true colors of what service given to these country nothing or useless abolish or merge but should be studied carefully.

    3. victor hernandez on

      This will require very coinsidered evaluation and selection criteria on which GOCCs will be merged, and those that will be abolished immediately. If done administratively by virtue of Administrative Law, many GOCCsy will just be rendered inoperative. If abolished by law, then that will be permanent. Choose wisely, which method is appropriate. This will require methodical and patient process. Equally important is the choice of people who will manage the remaining or merged corporation. Best wishes to P-Noy, and the GCG commissioner. We have 2 years to do this to be effective.

    4. apolonio reyes on

      ANG GCG GAYA NG ERC AY AHENSYA NG GOBYERNO NA INUTIL, INUULIT KO INUTIL AT WALANG SILBI. LAGI LANG SILANG YUMUYUKO AT PUMAPANIG SA MGA HILING NG GOCC SA INCREASE NG MGA BONUSES AT ALLOWNCES NA NGAYON AY P2.3B NA HINIGITAN PA NUON PANAHON NI GMA NA 188 ANG GOCC.
      ANG DAPAT ITANONG AT BUSISIIN NG COA NI TAN AY MAGKANO ANG SWELDO, ALLOWANCES AT BONUSES NILA GOC CHAIRMAN CESAR VILLANUEVA, COMM. REINIER BATULID, ATTY. SALVOSA & CO., BAKA MAHIGIT PA ITO SA MGA TINAGAP NG MGA TAGA SSS, GSIS, DBP, PHIL HEALTH, PAG-IBIG, ETC. DI BA SIRS? SINO ANG NAG AUDIT SA GCG, SIPSIP BA GAYA NYO?

    5. I wish this agency will just do what it proposes to do and stop blaming GMA for the sordid mess in the government GOCCs. Indeed there are too many nonnperforming GOCCs and it will be good to trim it down. But I hope it will be based on merit and not whether this or that GOCC is a GMA creation. There should also be some money to tide over those who will become jobless after the carnage.

    6. Is this the reason why the GOCCs reasoned out that the mind-boggling monies that they received are not really bonuses but returement benefits since they will be abolished.

      Not really funny in ChiNoy’s administration.