Government-owned and controlled corporation explained

In the Philippines, a government-owned and controlled corporation (GOCC), sometimes with an "and/or",[1] is a state-owned enterprise that conducts both commercial and non-commercial activity. Examples of the latter would be the Government Service Insurance System (GSIS), a social security system for government employees. There are 219 GOCCs as of 2022.[2] GOCCs both receive subsidies and pay dividends to the national government.A government-owned or controlled corporation is a stock or a non-stock corporation, whether performing governmental or proprietary functions, which is directly chartered by a special law or if organized under the general corporation law is owned or controlled by the government directly, or indirectly through a parent corporation or subsidiary corporation, to the extent of at least a majority of its outstanding capital stock or of its outstanding voting capital stock.

Under the GOCC Governance Act (Republic Act No. 10149), 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.

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

Finances

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.

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. 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.

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." 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. Dividends remitted were only one-tenth (1/10) of the total required by law according to the commission.

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.

List

List adapted from Integrated Corporate Reporting System's list.[10] [11]

Government financial institutions

Banking institutions

Non-banking institutions

Social security institutions

Trade, area development, and tourism sector

Trade

Area development

Tourism

Educational and cultural sector

Educational

Cultural

Gaming sector

Energy and materials sector

Energy

Materials

Agriculture, fisheries, and food sector

Agriculture and fisheries

Food

Utilities and communications sector

Utilities

Communications

Healthcare services sector

Realty and/or holding companies

GOCCs supervised by the Presidential Commission on Good Government

See also: Presidential Commission on Good Government.

Under privatization

Non-operational, inactive, or deactivated

Under abolishment

Dissolved or abolished

Privatized

Merged GOCCs

GOCCs disposed by the Privatization and Management Office

GOCCs excluded from the coverage of Republic Act No. 10149

Research institutions

Economic zone authorities

Created by a Supreme Court decision

Sui generis

See also

External links

Notes and References

  1. Web site: Government-Owned and/or Controlled Corporations . dead . https://web.archive.org/web/20150526091508/http://www.gov.ph/directory/government-owned-andor-controlled-corporations . May 26, 2015 . July 29, 2017 . Official Gazette . Republic of the Philippines.
  2. News: Lopez . Melissa Luz T. . May 25, 2015 . State-run corporations only remitted a tenth of dividends . BusinessWorld . July 29, 2017.
  3. News: Cayabyab . Marc Jayson . May 25, 2015 . House passes DBP, LBP merger bill . Philippine Daily Inquirer . May 26, 2015.
  4. News: October 22, 2014 . President Aquino approves closure of 7 nonperforming GOCCs . Official Gazette . May 26, 2015.
  5. News: June 6, 2014 . GCG marks third year as overseer of GOCC sector . Official Gazette . May 26, 2015.
  6. Web site: GOCC 2014 OPERATING SUBSIDIES AND PROGRAM FUNDS . dead . https://web.archive.org/web/20150526093313/http://www.gcg.gov.ph/site/pressreleases/view/19 . May 26, 2015 . May 26, 2015 . Governance Commission for GOCCs.
  7. News: Cabuag . V.S. . March 8, 2012 . Government subsidies to GOCCs grew by 155% in 2011 . BusinessMirror . July 5, 2012.
  8. News: June 3, 2013 . President Aquino receives P28-billion representing dividend contributions from 38 Government-Owned and Controlled Corporation in Malacañang . Office of the President of the Philippines . dead . May 26, 2015 . https://web.archive.org/web/20130806190312/http://pcoo.gov.ph/archives2013/jun03.htm#dividend . August 6, 2013.
  9. News: June 9, 2014 . GOCCs remit P32.31B to National mslajjxja boopy koTreasury . Philippine national government . Official Gazette . May 26, 2015.
  10. Web site: June 28, 2022 . Classification of GOCCs by SECTORS as of 28 June 2022 . January 25, 2023 . Integrated Corporate Reporting System . .
  11. News: Cabuag . V. S. . July 1, 2012 . Subsidies to GOCCs declined in May . BusinessMirror . dead . July 5, 2012 . https://web.archive.org/web/20141129192526/http://businessmirror.com.ph/home/banking-a-finance/29312-subsidies-to-goccs-declined-in-may . November 29, 2014.

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