Public Enterprises

- Should be created for the public needs like utilities (water, light, transportation, etc.), basic
social services (insurance), and vital services, like financial services

Common types of GOCCs

- Chartered GOCCs
o Including government financial institutions
o Created and vested with functions by a special law
 PhilHealth
- Government Instrumentalities with Corporate Powers (GICP)/Government Corporate Entities
o Instrumentalities or agencies of the government which are neither corporations nor
agencies integrated within the dep….
o The president cannot just use or limit these special funds
o They enjoy operational autonomy because of their charter
 Manila International Airport Authority
 Philippine Ports Authority
 Philippine Deposit insurance Corporation
 Metropolitan Waterworks and Sewerage System
- Non-chartered GOCCs
o A GOCC organized and operating under Batasang Pambansa Bilang 68 or the
Corporation Code of the Philippines
o GOCC that was not created by special law
- Subsidiary
o A corporation where at least a majority of the outstanding capital stock is own or
controlled directly indirectly through one or more intermediaries by the GOCC
- Affiliate
o A corporation where fifty percent or less of the outstanding capital stock of which is
owned or controlled directly or indirectly
- GOCCs are classified to:
- Developmental/Social corporations
o Needs of the society
- Proprietary Commercial corporations
o Big businesses (Negosyo)
- Governmental Financial, Investment, and Trust Institutions
o Investments, banks, financial institutions
- Corporations with Regulatory Functions
- GSIS – Dev/Social Corp
- PAGCOR – Regulatory
- Land Bank – Proprietary Commercial Corporation
- CAAP – Corporations with Regulatory Functions
- PDIC – Gov Financial, Investment, and Trust Institutions
- NFA – Dev/Social Corporation
- National Irrigation Administration – Corporations with Regulatory Functions
 - National Broadcasting Network – corporations with Regulatory Functions
- Lung Center of the Philippines – Dev/Social Corporations
- National Housing Authority – Dev/Social Corporations

What are the impacts of Public Enterprises in the Philippines?

- Impact on government revenues

o Not only come from taxes, but also GOCCs
o Even if some GOCCs are always on a loss
- Impact on employment
o Jobs are created for the people
o Increased in workforce
o Significant evidence of salaries increased
- Impact on market structure
o Some privatizations led to cartel (negative, privatization made prices high and the
government cannot regulate as strict as before)
- Efficiency because of regulatory GOCCs
- Options are created for the Filipino people