NEDA studies Pagcor, PCSO privatization
The National Economic and Development Authority (NEDA) said yesterday that it is studying the proposal to privatize two government-owned corporations engaged in the games of chance.
In a statement, the NEDA said that it is part of the discussion on the privatization of the Philippine Amusement and Gaming Corp. (Pagcor) and Philippine Charity Sweepstakes Office (PCSO).
Last week, Senate Minority Leader Frankin Drilon urged Finance Secretary Carlos G. Dominguez III to revive the planned privatization of Pagcor and PCSO, which the lawmaker estimated could yield around 1 300 billion.
Pressed by Drilon on the privatization, Dominguez responded “yes, we will push it again.”
Last year, the Governance Commission recommended the rationalization of Pagcor by separating its commercial and regulatory functions.
According to state agency monitoring government owned and controlled corporations (GOCCs), Pagcor currently has “conflicting” commercial and regulator functions.
“GCG has recommended to President Rodrigo Roa Duterte for separation of commercial and regulatory functions due to its conflicting proprietary activities and regulatory functions in which its operation of casinos conflicts with its function as a gaming regulator,” the agency said.
Dominguez earlier said that Pagcor should stick with its regulator functions and move away from the gambling business.
Meanwhile, NEDA said that GOCCs must examine their mandates and manuals of operations to ensure that competitive neutrality is maintained as they discharge their proprietary and commercial functions.
Competitive neutrality requires that GOCCs operating as a business to compete with private firms on a level playing field, without any preferential treatment in commercial activities that would disadvantage the private sector.
The GCG is tasked to review the mandates of GOCCs, as well as examine possible conflicts in their proprietary and regulatory functions or roles as operator and regulator.
Proprietary or commercial functions are activities of GOCCs that enable them to earn or derive income while regulatory functions are those that enable them to set rules in their specific sector or market.
“GOCCs should adopt structural measures to address any identified anti-competitive behavior relating to their mandate and operations, since the private sector may be in a better position to carry out some of their commercial pursuits,” Socioeconomic Planning Secretary Ernesto M. Pernia said.
Pernia added that transparency must be observed in procurement processes and that procurement laws, rules and regulations should be applied equally and equitably to GOCCs and firms in the private sector.