EDITORIAL - Trimming the GOCC fat

In the wake of the pork barrel scandal, President Aquino has given the green light for the abolition of three government-owned and controlled corporations. The GOCCs, Palace officials explained, were no longer financially viable, had no “tangible social impact” and no longer fulfilled their mandate.

The three also happened to be among several GOCCs that were reportedly used by lawmakers to funnel their Priority Development Assistance Fund, the official name of the pork barrel, to dubious non-government organizations. Operations will therefore start winding down at the Philippine Forest Corp., ZNAC Rubber Estate and the National Agribusiness Corp. The separation pay of officials and personnel in these GOCCs will be withheld until they are cleared of involvement in corrupt activities, Palace officials said.

Under the criteria set by Malacañang, a performance review should lead to the phase-out of more GOCCs. State firms came under fire recently for their fat yearend bonuses. The review for eventual phase-out of more GOCCs can start in the corporations that have shown the strongest resistance to returning or taking a hefty cut in their bonuses.

Calls have been made for many years to abolish certain GOCCs. The pork barrel scam opens opportunities for doing this. Certain quarters have also called for the abolition of two other GOCCs linked to the pork barrel scam: the National Livelihood Development Corp. and Technology Resource Center.

The pork barrel scandal, however, should not be the only reason for trimming the GOCC fat. In abolishing the three state firms, Palace officials explained that the government wanted to maximize efficiency and promote accountability. Under that criteria, several more state firms should be phased out.