Policy Dialogue Series 2004
Academe Meets the New Government (on
16 November 2004, 1:00-4:00 p.m., Claro M. Recto Hall, Faculty Center
Government-owned and controlled corporations (GOCCs) were created by virtue of Executive Orders and other laws for government to undertake business ventures where the public’s interest and welfare are at stake such as utilities, food, and social security. Recent developments have put GOCCs in the limelight. One issue hounding the GOCCs pertains to their incurred liabilities, which make up 40% of the consolidated public sector debt. Other criticisms being leveled at state-run corporations are the exorbitant salaries and benefits afforded to executives and the perpetual issue of mismanagement and inefficiency such as the case of the Government Service Insurance System (GSIS). Fingers were quick to point to state-run corporations as the primary contributor to the country’s ballooning budget deficit.
In response to the issues, the following proposals from various branches of government have been floated: 1) the abolition/privatization of non-performing GOCCs such as the National Food Authority (NFA), National Power Corporation (NAPOCOR) and Light Rail Transit Authority (LRTA); 2) amendment of the Charters of GOCCs to enable reorganization of the corporations; and, 3) imposition of a salary cap on executives. The Office of the President, which has the power to appoint or sack top executives, can only respond by expressing support to make public the financial records of state-owned corporations. As legislative proposals are being drafted and executive pronouncements are made in response to the issue, the public is yet to see which branch of government is accountable for the mismanagement of losing GOCCs and what policy alternatives can be drafted to promote accountability and transparency in all state-owned corporations.
This policy dialogue is the fourth of the UP Third World Studies Center’s Academe Meets Government Policy Dialogue Series of 2004. It aims to bring together various government institutions, the academe and the public to discuss concrete policy alternatives to promote transparency and accountability among state-run corporations.
- What are current mechanisms that allow transparency in financial transactions of GOCCs?
- What steps are being undertaken by GOCCs and concerned national government agencies (NGAs) such as the Department of Budget and Management and the Department of Finance in response to the financial status of non-performing GOCCs such as NAPOCOR, NFA and LRTA?
- What concrete policy measures can be drafted to address the
fiscal management problem of GOCCs?
- Executive action
- Legislative action (Senate and House proposals)
Mr. Dennis S. Gana, Corporate Communication Division Manager, National Power Corporation (NAPOCOR)
Mr. Eduardo Mañalac, President & CEO, Philippine National Oil Company-Energy Development Corporation (PNOC-EDC)
Mr. Gary Teves, CEO and President, Landbank of the Philippines
Prof. Juan Mayo M. Ragragio, School of Governance-Ateneo de Manila University Dr. Benjie Tolosa, Jr., Department of Political Science-Ateneo de Manila University Prof. Jose Tabbada, National College of Public Administration and Governance-University of the Philippines