Government-owned and controlled corporation — BrandWiki
Government-owned and controlled corporation
In the Philippines, a government-owned and controlled corporation (GOCC; ), sometimes with an "and/or",[1] is a state-owned enterprise (SOE) 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 GOCCs (GCG).[3] The Governance Commission is the "government's central advisory and oversight body over the public corporate sector" according to the
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.[6]
Subsidies from the national government in 2011 amounted to ₱21 billion.[7] In the 2013 fiscal year, the national government gave ₱71.9 billion pesos to GOCCs in subsidies, nearly twice the ₱44.7 billion programmed into the budget.[2] In 2014, ₱77.04 billion 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 in dividends and other forms of remittances from the 2012 operations of 38 GOCCs.[8] Eight GOCCs remitted ₱1 billion each: Philippine Reclamation Authority (PRA, ₱1 billion pesos); Philippine Ports Authority (PPA, ₱1.03 billion); Manila International Airport Authority (MIAA, ₱1.54 billion); Philippine Amusement and Gaming Corporation (PAGCOR, ₱P7.18 billion); Power Sector Assets and Liabilities Management Corporation (PSALM, ₱2 billion); Bases Conversion Development Authority (BCDA, ₱2.30 billion); Development Bank of the Philippines (DBP, ₱3.16 billion); and Land Bank of the Philippines (LBP, ₱6.24 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 ₱50 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 worth of dividends and other remittances from 50 GOCCs.[9] Seven GOCCs submitted over ₱1 billion each: Development Bank of the Philippines (DBP) with ₱3.616 billion; Power Sector Assets and Liabilities Management Corporation (PSALM) with ₱2.5 billion; Bases Conversion Development Authority (BCDA) with ₱2.107 billion; Manila International Airport Authority (MIAA) with ₱1.577 billion; Philippine National Oil Company-Exploration Corporation (PNOC-EC) with ₱1.5 billion; Philippine Ports Authority (PPA) with ₱1.422 billion; and Philippine Deposit Insurance Corporation (PDIC) with ₱1.05 billion.[9]
List
List adapted from Integrated Corporate Reporting System's list.[10][11]
