DBM moves to ‘deactivate’ Northrail

Non-performing GOCCs to be abolished

The Department of Budget and Management (DBM) wants to stop government’s support to the North Luzon Railways Corp. (Northrail) starting next year as the Duterte administration plans to abolish or merge nonperforming state-owned companies.

Budget Secretary Benjamin E. Diokno said they are recommending the “deactivation” of Northrail, citing the Department of Transportationattached agency has more number of board members than employees.

“We are recommending deactivation of Northrail because it makes a lot of sense. For example, the agency has 11 board members and only six employees, which is absurd,” Diokno told reporters in a recent interview.

Asked about the term “deactivation,” Diokno explained that it means the Duterte administration will give zero budget to Northrail, noting the DBM has no authority to abolish any government-owned and controlled corporation (GOCC).

Northrail is under DOTr and a subsidiary of the Bases Conversion and Development Authority. The state-owned firm is in charge of constructing, operating, and managing railway systems servicing Metro Manila, Central Luzon, and Northern Luzon.

Meanwhile, Diokno also said that the Duterte administration is planning to reduce the number of GOCCs to save up office space, vehicles, taxpayers money, among others.

The DBM chief cited that among the GOCCs eyed to be merged are the housing agencies, while they are also contemplating on dividing the mandate of the Department of the Interior and Local Government (DILG).

“Rightsizing does not really mean reduction, in fact we are thinking about a Department of Housing and Urban Development, so the housing bodies will be merged. Another proposal will be Department of Local Government, split the local government and homeland security,” Diokno said.

Diokno is currently pushing for the passage of Rightsizing the National Government Act of 2017 that once passed into law will abolish executive agencies with overlapping or redundant operations and functions.

According to Dikono, this will result in ineffective and inefficient in the delivery of public services.

Diokno, meanwhile, emphasized that the program is not about forced retirement or separation of affected regular employees.

Regular personnel whose positions would be affected in the implementation of the law shall have the option to avail of retirement benefits and separation incentives, or be placed by the Civil Service Commission in agencies needing additional personnel.