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Pangasinan State University

Institute of Arts, Science and Technology

Bayambang Campus

Bayambang, Pangasinan

REPORTER: PROFESSOR:

Vergel Villanueva Mr. Michael Eucapor

BPA III-1

Defining Philippine Public Enterprises

PUBLIC ENTERPRISES

* Public enterprises (PEs), often also called “state-owned enterprises”, “state enterprises”, and “parastatals”, are referred to in the Philippines as government owned and /or controlled corporations (GOCCs). A GOCC is defined under presidential decree 2029,issued in 1986, as:

…a stock or a non-stock corporation, whether performing governmental or proprietary functions, which is directly chartered 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 of its outstanding voting capital stock.

Executive Order No.84 issued in 16 august 1993 expanded this definition as follows:

…a corporation created by special law or incorporated and organized under the CORPORATION CODE and in which government, directly or indirectly, has ownership of the majority of the capital stock. Any subsidiary of GOCC shall be deemed a GOCC, Likewise, it is also a corporation …which is explicitly intended under the law and government policy for ultimate transfer to private ownership under certain.

* This part of the report integrates and summarizes two documents prepared as part of the project Public enterprise reform and privatization PERP namely:

a) A situational analysis of the GOCC public enterprise sector and ;

b) An inventory and assessment of the effectiveness of reforms implemented by the government to improve the performance and operation of the PE Sector.

..Specified condition shall be considered a GOCC until it is transferred to private ownership and control.