FIFTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES —)
FIRST REGULAR SESSION )

HOUSE OF REPRESENTATIVES

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

House Bill No.. 2867

EXPLANATORY NOTE

The Philippine government has around 120 Government 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 govemment has extended a
total of P7.28 billion in subsidies to state-owned firms from January to May, or
P2.25 billion more than the P5.03 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, it is
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 paasage of this bill is eamestly
requested.

RUFUS B. ROD! EZ

Wh.

MAXIMO B. RODRIGUEZ, JR.


FIFTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
FIRST REGULAR SESSION )

HOUSE OF REPRESENTATIVES

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

iNo.__2867

House

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 Govemment Financial Institutions (GFls) are hereby abolished:

Banaue Hotel and Youth Hostel;

Batangas Land Company, Incorporated;
BCDA Management and Holdings, Incorporated;
Cottage Industry Technology Center,

DBP Data Center, Incorporated;

DBP Management Corporation;

DBP Maritime Leasing Corporation;

Freeport Service Corporation;

GY Real Estate, Incorporated

10. Human Settlements Development Corporation;
11. Industrial Guarantee and Loan Fund:

12. Kamayan Realty Corporation:

13. LBP Insurance Brokerage, Incorporated;

14. LBP Leasing Corporation;

15. Luzon integrated Services, Incorporated;

16. Manila Gas Corporation;

17. Marawi Resort Hotel, Incorporated;

18. Masaganang Sakahan, Incorporated:

19. National Agribusiness Corporation:

20. National Precision Cutting Tools, Incorporated:
21.National Slipways Corporation:

22. National Stevedoring and Lighterage Corporation;

CONDARONS


23. National Trucking and Forwarding Corporation;

24. Natural Resources Development Corporation;

25. NDC-Infrastructure Corporation;

26. Northern Foods Corporation;

27. Partido Development Administration:

28. Philippine Aerospace Development Corporation:

29. Philippine Center for Economic Development;

30. Philippine Convention and Visitors Corporation;

31. Philippine Institute for Development Studies;

32. Philippine Institute of Traditional and Altemative Health Care;
33, Pinagkaisa Realty Corporation;

34. Tacoma Bay Shipping Company, Incorporated;

35. Trade and Investment Development Corporation of the Philippines; and
36.ZNAC Rubber Estate Corporation;

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 GFls 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. 6. 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,