GCG to ensure state firms do not compete with private sector

MANILA -- The Governance Commission for GOCCs (GCG) vowed to work closely with concerned government agencies in reviewing the mandates of governmentowned and controlled corporations (GOCCs) to ensure a level playing field is maintained and that they do not directly compete with the private sector.

In a statement on Wednesday, April 25, GCG said it has reviewed the mandates of 12 GOCCs on the issue of competitive neutrality as part of the agency’s commitment to the Philippine Development Plan (PDP) 2017-22.

One of the GOCCs that the agency recently reviewed is the Philippine Amusement and Gaming Corporation (Pagcor), which GCG has recommended to the Office of the President to be separated of its commercial and regulatory functions.

The recommendation was made after GCG cited the “conflicting proprietary activities and regulatory functions (of Pagcor) in which its operations of casinos conflicts with its functions as a gaming regulator.”

The statement said GCG will work closely with the Philippine Competition Commission, the National Economic Development Authority, the Department of Justice, and the Department of Trade and Industry “to review the mandates of all 123 GOCCs under its jurisdiction, as well as recommend and implement appropriate actions to be undertaken for those with identified competitive neutrality issues, before the end of President (Rodrigo) Duterte’s term.”

Aside from reviewing GOCCs’ mandate, GCG said it will also “recommend and initiate privatization or transfer of regulatory functions to the appropriate government agency.”

“It is a firm belief of the Governance Commission that there should be a level playing field between GOCCs and corporations in the private sector performing similar commercial activities,” it said.

The statement noted that “competitive neutrality is clearly among the policies of the State under Republic Act 10149 and the Ownership and Operations Manual Governing the GOCC Sector.”

It explained that Section 5(I) of the GOCC Governance Act of 2011 mandates that GCG “recommend to the President GOCCs for dispositive action “upon determination that here is a conflict between the regulatory and commercial functions of a GOCC.”

“The Governance Commission is committed to its role in the formulation and implementation of the National Competition Policy to improve consumer welfare and market efficiency, and achieve Pagbabago and Patuloy na Pag-unlad (Change and Continued Progress) as envisioned in PDP 2017-2022,” it added.