SIXTEENTH CONGRESS
REPUBLIC OF THE PHILIPPINES
First Regular Session

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HOUSE OF REPRESENTATIVES fy * RECEIVED ©

“introduced by Representative Rufus B. Rodriguez ang

Representative Maximo B. Rodriguez, Jr.

House Bill No. _ 3807 X

EXPLANATORY NOTE

The Philippine government has around 120 Goverment Owned or Controlled
Corporations (GOCCs) and Government Financial Institutions (GFls), many of which
are unnecessary, underperforming and losing. However, despite this, the taxpayers
are still paying for their expenses and their officers’ and employees’ salaries. Also,
the government has extended a total of P7.28 billion in subsidies to state-owned
firms from January to May, or P2.26 billion more than the PS.03 billion recorded in
the same period last year, according to the latest data from the Department of
Finance (DOF). These subsidies are booked as expenses and put a strain on the
government's widening budget deficit

Consistent with the Aquino administration's austerity measures, itis high time
that the government removes the excess fat and spends only for things that are truly
Vital to the country,

In view of the foregoing, immediate passage of this bill is eamestly requested,

.

RUF) Via
whl bun JR.


SIXTEENTH CONGRESS
REPUBLIC OF THE PHILIPPINES }
First Regular Session

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez and
Representative h Rodriguez, Jr.

3807

House Bill No.

AN ACT
ABOLISHING CERTAIN GOVERNMENT OWNED AND CONTROLELD
CORPORATIONS AND GOVERNMENT FINANCIAL INSTITUTIONS, PROVIDING
SEPARATION BENEFITS FOR ITS OFFICERS AND EMPLOYEES,
APPROPRIATING FUNDS THEREFOR AND FOR OTHER PURPOSES

Be it enacted by the Senate and the House of Representatives of the Philippines in
Congress assembled

SECTION 1. The following Government Owned or Controlled Corporations (GOCCs)
and Government Financial institutions (GFls) are hereby abolished:

. Banaue Hotel and Youth Hostel;

. Batangas Land Company, Incorporated;

BCDA Management and Holdings, Incorporated;
. Cottage Industry Technology Center;

Freeport Service Corporation;

GY Real Estate, Incorporated;

. Human Settlements Development Corporation;

. Kamayan Realty Corporation;

Marawi Resort Hotel, Incorporated;

10. Masaganang Sakahan, Incorporated;

14, National Agribusiness Corporation;

12. Natural Resources Development Corporation;
13, NDC- Infrastructure Corporation;

14, Northern Foods Corporation;

16. Philippine Aerospace Development Corporation;
16. Philippine Convention and Visitors Corporation;
17. Pinagkaisa Realty Corporation;

18. Trade and Investment Development Corporation of the Philippines; and
419. ZNAC Rubber Estate Corporation;

OENOARON=

SEC. 2. All officers and employees of these abolished GOCCs and GFls are hereby
given two and a half (2%) months salary for each year of service in their respective
GOCCs and GFis as separation pay.

SEC. 3. The functions and duties of the abolished GOCCs and GFis are hereby
transferred to the different Departments of the government exercising the same or
similar functions.

SEC. 4. The Department of Finance, the Department of Budget and Management
and the Commission on Audit shall issue the necessary rules and regulations
necessary for the full implementation of this Act.


‘SEC. 5. The necessary funding needed for the payment of the separation benefits
provided for in this Act shall be included in the General Appropriations Act for 2011.

SEC. 6, implementing Rules and Regulations — The necessary rules and regulations
needed to implement the provisions of this Act shall be promulgated within ninety
(90) days after the approval of this Act.

SEC. 7. Repealing Clause — All laws, decrees, executive orders, department or
memorandum orders and other administrative issuances or parts thereof which are
inconsistent with the provisions of this Act are hereby modified, superseded or
repealed accordingly.

‘SEC. 8. Effectivity Clause — This Act shall take effect after fifteen (15) days following

the completion of its publication in the Official Gazette or in at least two (2)
newspapers of general circulation in the Philippines.

Approved,