The Department of Finance (DOF) said it is actively privatizing nonperforming and idle government assets to generate more funds for national development and reduce debt.
“The assets we are privatizing are no longer productive and continue to drain the national government’s resources through management, security, and maintenance costs. By disposing of these nonperforming assets, we eliminate unnecessary expenditures and unlock resources that can address the pressing needs of our people,” Finance Secretary Ralph G. Recto said.
“This approach ensures the efficient use of public funds,” he said.
To support the national government’s budget, the DOF is pursuing the generation of non-tax revenues through its privatization efforts, as stated in Executive Order 323, which established the Inter-agency Privatization Council (IPC) and the Privatization Management Office (PMO).
The IPC directs, supervises and coordinates all privatization and similar disposition efforts undertaken by the national government to promote private-sector participation in developing the Philippine economy and to generate maximum cash recovery.
The council sets the minimum base price of each asset, which is typically the fair market value (FMV) as assessed by third-party valuations or appraisals.
It is composed of the finance secretary as chairman, with the secretaries of the Department of Budget and Management (DBM), the Department of Trade and Industry (DTI), the National Economic and Development Authority (NEDA) and the Department of Justice (DOJ) as members. The National Treasurer (BTr) and the chairman of the Presidential Commission on Good Government (PCGG) serve as nonvoting members of the council.
In September 2024, the national government approved new guidelines on the privatization and disposition of government assets by the IPC. This institutionalizes the policies and decisions of the IPC over the years to guide both the public and private sectors in ensuring the process, rules, and regulations are clear and transparent.
Meanwhile, as an attached agency of the DOF, the PMO facilitates an orderly, coordinated, and efficient program for the prompt disposition of nonperforming assets of government financial institutions and certain government-owned or controlled corporations (GOCCs) that have been found unnecessary or inappropriate for the government sector to maintain.
There are 28,665 nonperforming assets transferred to the PMO for privatization. If not privatized, the government will have to use much-needed funds meant to aid national development for the management, security, and maintenance of these assets.
The disposition of properties is published through newspapers of general circulation and posted on government websites to ensure full transparency on the sale. The terms and conditions of the sale are unanimously approved by the IPC.
The DOF said it has been in close coordination with the Social Security System (SSS) and Government Service Insurance System (GSIS) on some assets that would serve as good long-term investments for the pension funds.
The privatization of idle and underperforming government assets is a win-win solution for both the national government and investors, as compensation from the sale will support priority programs and projects that will benefit the Filipino people, it said.
