EXECUTIVE ORDER NO. 37
EXECUTIVE ORDER NO. 37 - RESTATING
THE PRIVATIZATION POLICY OF THE GOVERNMENT
WHEREAS, Proclamation No. 50, s. 1986,
launched a program for the disposition and privatization of government
corporations and/or the assets thereof and created the Committee on
Privatization (COP) and the Asset Privatization Trust (APT).
WHEREAS, Republic Act No. 7181, s. 1992, extended the life of the COP
and APT from December 8, 1991 up to December 31, 1993;
WHEREAS, Administrative Order Nos. 8 and 9, s. 1992, directed the
identification of idle government properties and recommend to the
President an action plan for the disposition of such properties;
WHEREAS, 122 government owned or controlled corporations (GOCCs) were
approved for privatization while 179 GOCCs were identified for
retention, abolition, regularization or other dispositive modes;
WHEREAS, of the 122 GOCCs for privatization, 72 GOCCs were
privatized/disposed as of September 30, 1992 generating gross sales
proceeds of P22 billion;
WHEREAS, 399 transferred assets were entrusted to APT for disposition,
of which 288 were privatized/disposed as of September 30, 1992,
generating gross sales proceeds of P31 billion;
WHEREAS, the privatization program has proven successful and beneficial
to the economy in terms of expanding private economic activity,
improving investment climate, broadening ownership base and developing
capital markets, and generating substantial revenues for priority
government expenditures;
WHEREAS, there is still such potential for harnessing private
initiative to undertake in behalf of government certain activities
which can be more effectively and efficiently undertaken by the private
sector;
NOW, THEREFORE, I, FIDEL V. RAMOS, President of the Philippines, by
virtue of the powers vested in me by law, do hereby order:
Section 1. Restatement of Policy. — The National
Government hereby reaffirms its privatization policy to promote an
orderly, coordinated and efficient program for the privatization of
government entities, assets or activities which are better managed,
undertaken or owned by the private sector.
Sec. 2. Privatization of GOCCs approved for
Disposition. — Pursuant to the principles provided in Proclamation No.
50, s. 1986, the COP designated disposition entities shall submit to
the COP a privatization action plan for all GOCCs approved for
divestment as listed in Annex “A” within one month (1) from issuance
hereof; Provided, that said action plan must contain a description of
the privatization process to be adopted and a time frame for each step
thereof. Said action plan shall include an offer to sell the company’s
shares/assets within five (5) months from its approval by the
COP.
Sec. 3. Review of GOCCs for Retention. — The
Government Corporate Monitoring and Coordinating Committee (GCMCC)
shall review the need to retain the GOCCs which were previously
approved for retention, including but not limited to those listed in
Annex “B” hereof, and submit its recommendation of companies,
activities or assets thereof of a second group of GOCCs for
privatization, to the COP within two (2) months from issuance hereof.
Sec. 4. Designation of Disposition Entity. — The
COP shall review the list of disposition entities designated for the
privatization of GOCCs and designate another disposition entity, such
as the APT or the National development Company (NDC) if it is necessary
for the effective and expeditious privatization of certain GOCCs.
Sec. 5. Sale of Idle Government Properties. — The
Committees created pursuant to Administrative Order Nos. 8 and 9, s.
1992, shall submit its recommended action plan for the disposition of
idle government properties to the President, through the COP, within
three (3) months from issuance hereof.
Sec. 6. Privatization of Other Activities. — All
heads of departments, bureaus, agencies and other government
corporations shall identify their assets or activities which may be
more efficiently, effectively and economically undertaken by the
private sector through such arrangements as sale of physical assets,
leasing of assets, management and maintenance contracts or
build-operate-transfer (BOT) schemes. Where these are within their
competence, they shall implement such privatization directly. Where
these require actions of the office of the President or legislation,
they shall submit their recommendations to the COP not later than three
(3) months from issuance hereof. Where further assistance is needed,
they may consult the COP and avail of grants for technical assistance
for privatization, administered by the Department of Finance.
Sec. 7. Distribution of Net Proceeds. — Except for
subsidiaries of the Government Service Insurance System and the Social
Security System, all GOCCs shall remit to the National Government at
least fifty per cent (50%) of the net proceeds derived from the sale of
shares of assets effective October 1, 1992. Net proceeds shall mean
gross proceeds less related liabilities and selling expenses.
Sec. 8. Implementing Rules. — The COP shall issue
the necessary rules and regulations for the implementation of this
Order within thirty (30) days from issuance hereof.
Sec. 9. Effectivity. — This Order shall take
effect immediately.
DONE, in the City of Manila,
this 2nd day of December, in the year of Our Lord, nineteen hundred and
ninety-two.
ANNEX “A”
REMAINING GOCCs FOR PRIVATIZATION
CORPORATION
AREA OF ACTIVITY
ASSET PRODUCTION TRUST
1. APO Production Unit Inc. Printing
services
2. Associated Bank
Commercial banking
3. Basin Dredging and
Development Corporation
Dredging and
reclamation
4. Bicolandia Sugar Development
Corporation
Sugar milling
5. East
Visayas Agricultural
Projects, Inc. Swine, poultry, farming
6. Leyte Park Hotels, Inc. Hotel
operations
7. Northern Foods
Corp.
Tomato paste production
8. Philippine Fruit and Vegetable
Industries Inc. Tomato paste production
9. Philippine Shipyard Engineering Ship repair and fabrication
Corp.
of steel prod.
10. Philippine Sugar Corporation
Finance acquisition,
rehab/expansion of
sugar mills
11. Phividec Panay Agro-Industrial
Plantation farming/fertilizer
Corp.
production and trading
12. Ridge Resort and Convention
Center, Inc.
Resort
and convention facility mgt.
13. San Carlos Fruit Corp.
Fruit puree production
DEVELOPMENT BANK OF THE PHILIPPINES
1. DBP Data Center Inc. Dev’t. and mgt. of DBP
computer sys. and personnel
2. Philippine Amanah
Bank
Commercial banking
DEPARTMENT OF AGRICULTURE
1. Food Terminal, Inc. Food, trading, processing, storage,
real estate mgt.
2. Republic Transport And
Shipyard Corp. Sugar terminal and shipyard
operation
DEPARTMENT OF TRANSPORTATION AND COMMUNICATION
1. Metro Manila Transit Corp
Passenger bus operation
and leasing
2. Philippine Aerospace
Aircraft mgt., maintenance eng.,
Development Corp.
selling
3. Philippine Helicopter
Maintenance and overhaul of
Services Inc. helicopters
GOVERNMENT SERVICE INSURANCE SYSTEM
1. Manila Hotel Corporation
Hotel operation and management
2. Meat Packing Corporation
of the Philippines Meat
processing/canning
NATIONAL DEVELOPMENT COMPANY
1. Batangas Land Company
Inc.
Land ownership
2. GY Real Estate
Inc. Land ownership
3. Kamayan Realty Corp. Land ownership
4. Nadeco Realty corp. Land ownership
5. National steel Corp Steel production
6. National Trucking and
Trucking, freight of forwarding
Forwarding Corp.
7. NDC-Guthrie Estates, Inc.
Palm oil production
8. NDC-Guthrie Plantations, Inc.
Palm oil production
9. Philippine Associated Smelting
and Refining Corp.
Copper smelting and refining
10. Philippine Phosphate Fertilizer
Corp. Fertilizer production
11. Philippine Plate Mills Company,
Inc. Manufacturing of steel plates
12. Philippine Pyrite
Corp.
Production of pyrite concentrates
13. Pinagkaisa Realty Corp.
Land ownership
14. Refractories Corporation of
the Philippines
Production of basic refractories
15. Semirara Coal Corp. Coal mining
PRESIDENTIAL MANAGEMENT STAFF
1. Integrated Food Mills Corp.
Feed production
2. Marawi Resort Hotel Inc.
Hotel operation
3. Mindeva Coco-Coir Industries, Inc. Production of coco-coir fiber
product
4. Mountain Springs Development Corp. Swine raising
5. Panaon Prawn Development Corp.
Prawn pry and larvae raising
6. Shoe Technology Corp. Footwear manufacturing
PHILIPPINE NATIONAL OIL COMPANY
1. Filoil Industrial Estates Inc.
Land ownership
2. Filoil Refinery Corp. Oil refining
3. Malangas Coal Corp. Coal refining Int’l.
4. PNOC Oil Carriers,
Inc.
Oil Tanker operation
NATIONAL IRRIGATION AUTHORITY
1. NIA-consult, Inc. Consultancy, mgt. and special
services of projects
Source: Committee on Privatization
October 31, 1992.
ANNEX “B”
LIST OF RETAINED GOCCs
As of 31 August 1992
NAME OF
CORPORATIONS
OFFICE TO
W/C ATTACHED
1 National Food Authority DA
2 National Irrigation Administration
DA
3 National Tobacco Administration
DA
4 Philippine Coconut Authority
DA
5 Philippine Fisheries Development
Authority
DA
6 Philippine Rice Research Institute
DA
7 Quedan and Rural Credit Guarantee
Corporation DA
8 Sugar Regulatory
Administration
DA
9 National Electrification
Administration
DENR
10 Natural Resource Development Corporation DENR
11 Philippine Veterans Assistance
Commission DND
12 Philippine Veterans
Bank
DND
13 Philippine Veterans Investment
Development Corporation
DND
14 Phividec Industrial
Authority
DND
15 Veterans Federation of the
Philippines
DND
16 Philippine Crop Insurance
Corporation
DOF
17 Philippine Export & Foreign Loan
Guarantee Corporation
DOF
18 Lung Center of the
Philippines
DOH
19 National Kidney Institute
DOH
20 Philippine Children’s Medical Center
DOH
21 Philippine Heart
Center
DOH
22 Employees Compensation
Commission
DOLE
23 Philippine Convention & Visitors
Corporation
DOT
24 Philippine Tourism Authority (Including
Duty Free Shops, other assets or
subsidiaries) DOT
25 Light Rail Transit
Authority
DOTC
26 Manila International Airport
Authority
DOTC
27 Philippine National
Railways DOTC
28 Philippine Ports
Authority
DOTC
29 Postal Service
Corporation DOTC
30 Local Water Utilities
Administration
DPWH
31 Metropolitan Waterworks & Sewerage
System DPWH
32 Asean Copper Products,
Inc.
DTI
33 Center for International Trade &
Exposition Mission,
Inc.
DTI
34 Cottage Industries Technology Center
(Formerly
NACIDA)
DTI
35 Export Processing Zone
Authority
DTI
36 National Development Company
DTI
37 a. Manila Gas
Corporation
DTI
38 a.1. Inter-Island Gas Service,
Inc.
DTI
39 a.2. Pagkakaisa Gas Storage Corporation
DTI
40 b. Philippine International Trading
Corporation DTI
41 Small Business Guarantee and
Finance
Corporation
DTI
42 Home Development Mutual
Fund
HUDCC
43 Home Insurance and Guarantee Corporation
HUDCC
44 National Home Mortgage Finance
Corporation HUDCC
45 National Housing
Authority
HUDCC
46 Philippine Deposit Insurance
Corporation
NEDA
47 Philippine Institute for Development
Studies
NEDA
48 Bases Conversion Development Authority OP
49 Central Bank of the Philippines
OP
50 a. Philippine International Convention Center,
Inc. OP
51 b. Private Debt Restructuring &
Repayment
Corporation
OP
52 Cultural Center of the
Philippine
OP
53 Development Academy of the Philippines OP
54 Development Bank of the
Philippines
OP
55 Government Service Insurance
System
OP
56 Land Bank of the Philippines
OP
57 a. LBP Insurance Brokerage,
Inc.
OP
58 b. LBP Leasing
Corporation
OP
59 c. Lumang Bayan Realty Development
Corporation
OP
60 d. Masaganang Sakahan,
Inc.
OP
61 Livelihood Corporation
OP
62 National Agri-Business
Corporation
OP
63 National Power
Corporation
OP
64 PAGCOR Services, Inc.
OP
65 People’s Television Network,
Inc.
OP
66 Philippine Center for Economic
Development
OP
67 Philippine National Oil
Company
OP
68 a. Petron
Corporation OP
69 b. Petron Tankers
Corporation
OP
70 c. Petrophil Tankers
Corporation OP
71 d. PNOC Energy Development
Corporation
OP
72 e. PNOC Exploration
Corporation
OP
73 f. PNOC Shipping & Transport
Corporation OP
74 g. PNOC Tankers Corporation
OP
75 Philippine Retirement
Authority OP
76 Public Estate Authority
OP
77 Social Security
System
OP
78 Southern Philippines Development
Authority
OP
79 Strategic Investment Development
Corporation OP
80 Subic Bay Metropolitan Authority
OP
81 Technology & Livelihood Resource
Center
OP
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