PUBLIC ENTERPRISE

WHAT IS A PUBLIC ENTERPRISE?

➢Public enterprises have two defining

characteristics: they are government owned and
controlled; and

➢They are engaged in business activities. Ideally,

when making statistical comparisons, these
characteristics should be given a precise and
consistent meaning, but, in practice, this is difficult
to do.
 WHAT IS THE CONCEPT OF A PUBLIC ENTERPRISE?

➢Public enterprise, a business organization wholly

or partly owned by the state and controlled
through a public authority. Some public enterprises
are placed under public ownership because, for
social reasons, it is thought the service or product
should be provided by a state monopoly.
 WHAT IS THE PURPOSE OF PUBLIC ENTERPRISE IN THE PHILIPPINES?
➢Public enterprises refer to corporations which are wholly-
owned or controlled by the government. There are several
reasons for their establishment. First, public enterprises are seen
as entities that forge nationalism by assuring control of the
economy by Filipinos.
➢The enterprise must contribute to society by engaging in
activities that make the best use of resources entrusted to it by
society, and thereby create surplus value. In general, there is a
view that the purpose of an enterprise is to pursue profit.
WHY ARE PUBLIC ENTERPRISES IMPORTANT IN THE PHILIPPINES?

➢There are several reasons for their establishment. First, public

enterprises are seen as entities that forge nationalism by
assuring control of the economy by Filipinos.

➢Second, the urgent need for development requires the

immediate establishment of government corporations to
demonstrate economic viability.
 KEY CHARACTERISTICS OF PUBLIC SECTOR ENTERPRISES
➢ Government Ownership: Public sector enterprises are owned by the government, which means they are
funded by taxpayers’ money.
➢ Service Orientation: Their primary mission is to provide essential services such as healthcare, education,
transportation, and utilities to the public.
➢ Social Responsibility: Public sector entities often have a social responsibility to ensure fair access and
affordability of services.
➢ Bureaucratic Regulations: They are subject to government regulations and bureaucratic processes, which
can sometimes lead to slower decision-making.
Advantages of Public Sector Enterprises
➢ Universal Access: Public enterprises ensure that essential services are accessible to all citizens, regardless
of their financial status.
➢ Stability: They provide stability in key industries and infrastructure, safeguarding the interests of the nation.
➢ Social Welfare: Public sector enterprises contribute to social welfare by focusing on services that benefit
society as a whole.
➢ Long-Term Planning: Government ownership allows for long-term planning, which can be beneficial for
strategic industries.
 WHAT IS THE MAJOR DISADVANTAGE OF PUBLIC ENTERPRISE?
Advantages of Public Sector Enterprises
➢Universal Access: Public enterprises ensure that essential services are
accessible to all citizens, regardless of their financial status.
➢Stability: They provide stability in key industries and infrastructure,
safeguarding the interests of the nation.
➢Social Welfare: Public sector enterprises contribute to social welfare by
focusing on services that benefit society as a whole.
➢Long-Term Planning: Government ownership allows for long-term
planning, which can be beneficial for strategic industries.

Disadvantages of Public Enterprises.

➢Government must bear losses or this could lead to higher taxation.
➢Consumers' choice is restricted to the state if the business is a monopoly.
➢Regulations may be passed to curb the progress of private business.
 GOVERNMENT FINANCIAL
INSTITUTIONS
➢Banking institutions Al-Amanah Islamic Investment Bank of the
Philippines (AIIBP)
➢Development Bank of the Philippines (DBP)
➢DBP Data Center, Inc. (DCI)
➢Land Bank of the Philippines (LBP)
➢Land Bank Countryside Development Foundation, Inc. (LCDFI)
➢LBP Resources and Development Corporation (LBRDC)
➢Overseas Filipino Bank (OFB)
➢UCPB Savings Bank (UCPB-SB)
 NON-BANKING INSTITUTIONS
➢ Credit Information Corporation (CIC)
➢ DBP Leasing Corporation (DBP-LC)
➢ LBP Insurance Brokerage, Inc. (LIBI)
➢ LBP Leasing and Finance Corporation (LLFC)
➢ National Development Company (NDC)
➢ National Home Mortgage Finance Corporation (NHMFC)
➢ Philippine Crop Insurance Corporation (PCIC)
➢ Philippine Deposit Insurance Corporation (PDIC)
➢ Small Business Corporation (SBCorp)
➢ Social Housing Finance Corporation (SHFC)
➢ Philippine Guarantee Corporation
➢ UCPB Leasing and Finance Corporation (ULFC)
➢ UCPB Securities, Inc. (USI)
 SOCIAL SECURITY INSTITUTIONS

➢Employees Compensation Commission (ECC)

➢Government Service Insurance System (GSIS)
➢Home Development Mutual Fund (Pag-IBIG Fund)
➢Philippine Health Insurance Corporation (PhilHealth)
➢Social Security System (SSS)
➢Veterans Federation of the Philippines (VFP)
 TRADE, AREA DEVELOPMENT, AND TOURISM SECTOR

➢Center for International Trade Expositions and Missions

(CITEM)
➢Duty Free Philippines Corporation (DFPC)
➢Philippine International Trading Corporation (PITC)
➢Philippine Pharma Procurement, Inc. (PPPI)
➢National Food Authority (NFA)
➢Planters Products, Inc. (PPI)
➢Planters Foundation, Inc. (PFI)
 AREA DEVELOPMENT

➢Bases Conversion and Development Authority (BCDA)

➢Clark Development Corporation (CDC)
➢John Hay Management Corporation (JHMC)
➢Laguna Lake Development Authority (LLDA)
➢National Housing Authority (NHA)
➢Palacio del Gobernador Condominium Corporation (PDGCC)
➢Philippine Reclamation Authority (PRA)
➢Poro Point Management Corporation (PPMC)
➢Quezon City Development Authority (QCDA)
➢Southern Philippines Development Authority (SPDA)
➢Tourism Infrastructure and Enterprise Zone Authority (TIEZA)
 TOURISM

➢Corregidor Foundation, Inc. (CFI)

➢Marawi Resort Hotel, Inc. (MRHI)
➢Philippine Retirement Authority (PRA)
➢Tourism Promotions Board (TPB)
 EDUCATIONAL AND CULTURAL SECTOR

➢Boy Scouts of the Philippines (BSP)

➢Girl Scouts of the Philippines (GSP)
➢Philippine Tax Academy (PTA)
 CULTURAL

➢Cultural Center of the Philippines (CCP)

➢Nayong Pilipino Foundation (NPF)
 GAMING SECTOR

➢Philippine Amusement and Gaming Corporation (PAGCOR)

➢Philippine Charity Sweepstakes Office (PCSO)
 ENERGY AND MATERIALS SECTOR

➢National Electrification Administration (NEA)

➢National Power Corporation (NPC)
➢National Transmission Corporation (TRANSCO)
➢Philippine National Oil Company (PNOC)
➢Power Sector Assets and Liabilities Management Corporation (PSALM)
➢PNOC Exploration Corporation (PNOC-EC)
➢PNOC Renewables Corporation (PNOC-RC)
➢Philippine Electricity Market Corporation (PEMC)
 MATERIALS

➢Batong Buhay Gold Mines, Inc. (BBGMI)

➢Bukidnon Forest, Inc. (BFI)
➢Natural Resources Development Corporation (NRDC)
➢Philippine Mining Development Corporation (PMDC)
AGRICULTURE, FISHERIES, AND FOOD SECTOR
➢Agriculture and fisheries
➢National Dairy Authority (NDA)
➢National Tobacco Administration (NTA)
➢Philippine Coconut Authority (PCA)
➢Philippine Fisheries Development Authority (PFDA)
➢Sugar Regulatory Administration (SRA)
 FOOD

➢Cagayan de Oro Oil Company, Inc. (CAGOIL)

➢Food Terminal Inc. (FTI)[c]
➢Granexport Manufacturing Corporation (Granex)
➢Iligan Coconut Industries, Inc. (ILICOCO)
➢Legaspi Oil Company, Inc. (LEGOIL)
➢National Sugar Development Company (NASUDECO)
➢San Pablo Manufacturing Corporation (SPMC)
➢Southern Luzon Coconut Oil Mill, Inc. (SOLCOM)
 UTILITIES AND COMMUNICATIONS SECTOR
➢ Cebu Port Authority (CPA)
➢ Civil Aviation Authority of the Philippines (CAAP)
➢ Clark International Airport Corporation (CIAC)
➢ Davao International Airport Authority (DIAA)
➢ Light Rail Transit Authority (LRTA)
➢ Local Water Utilities Administration (LWUA)
➢ Mactan–Cebu International Airport Authority (MCIAA)
➢ Manila International Airport Authority (MIAA)
➢ Metropolitan Waterworks and Sewerage System – Corporate Office (MWSS-CO)
➢ Metropolitan Waterworks and Sewerage System – Regulatory Office (MWSS-RO)
➢ National Irrigation Administration (NIA)
➢ PEA Tollway Corporation (PEA-TC)
➢ Philippine Aerospace Development Corporation (PADC)
➢ Philippine National Construction Corporation (PNCC)
➢ Philippine National Railways (PNR)
➢ Philippine Ports Authority (PPA)
 COMMUNICATIONS

➢APO Production Unit, Inc. (APO-PUI)

➢People's Television Network, Inc. (PTNI)
➢Philippine Postal Corporation (PHLPost)
 HEALTHCARE SERVICES SECTOR

➢La Union Medical Center (LUMC)

 REALTY AND/OR HOLDING COMPANIES
• Anglo Ventures Corporation
• AP Holdings, Inc.
• ARC Investors, Inc.
• ASC Investors, Inc.
• Batangas Land Company, Inc. (BLCI)
• Fernandez Holdings, Inc.
• First Meridian Development, Inc.
• G. Y. Real Estate, Inc. (GYREI)
• Kamayan Realty Corporation (KRC)
• Pinagkaisa Realty Corporation (PiRC)
• Randy Allied Ventures, Inc.
• Rock Steel Resources, Inc.
• Roxas Shares, Inc.
• San Miguel Officers Corp. Inc.
• Soriano Shares, Inc.
• Te Deum Resources, Inc.
• Toda Holdings, Inc.
• Valhalla Properties, Inc.
 GOCCS SUPERVISED BY THE
PRESIDENTIAL COMMISSION ON
GOOD GOVERNMENT
➢See also: Presidential Commission on Good Government
➢Banahaw Broadcasting Corporation (BBC)
➢Bataan Shipyard and Engineering Company (BASECO)
➢Chemfields, Inc. (CI)
➢Independent Realty Corporation (IRC)
➢Mid-Pasig Land Development Corporation (MLDC)
➢Performance Investment Corporation (PIC)
➢Piedras Petroleum Company, Inc. (PIEDRAS)
➢UCPB–CIIF Finance and Development Corporation (COCOFINANCE)
➢UCPB–CIIF Foundation, Inc.
➢United Coconut Chemicals, Inc. (COCOCHEM)
➢United Coconut Planters Bank General Insurance, Inc. (COCOGEN)
➢United Coconut Planters Life Assurance Corporation (COCOLIFE)
 UNDER PRIVATIZATION

➢GSIS Family Bank (GSIS-FB)

➢Intercontinental Broadcasting Corporation (IBC)
➢Monterrosa Development Corporation (MDC)
 NON-OPERATIONAL, INACTIVE, OR
DEACTIVATED
➢ Anchor Estate, Inc. (AEI)
➢ LWUA Consult, Inc. (LWUA-CI)
➢ Aviation Services and Training Institute (ASTI)
➢ BCDA Management and Holdings, Inc. (BMHI) ➢ Manila Gas Corporation (MGC)
➢ Calauag Quezon Province Integrated Coconut
Processing Plant, Inc. (CQPICPPI)
➢ Masaganang Sakahan, Inc. (MSI)
➢ Clark Polytechnic Development Foundation (CPDF) ➢ Meat Packing Corporation of the Philippines (MPCP)
➢ DBP Management Corporation (DBPMC) ➢ Metro Transit Organization, Inc. (MTOI)
➢ First Centennial Clark Corporation (FCCC)
➢ GSIS Mutual Fund, Inc. (GSIS-MFI) ➢ NDC–Philippine Infrastructure Corporation (NPIC)
➢ GSIS Properties, Inc. (GSIS-PI) ➢ North Davao Mining Corporation (NDMC)
➢ Integrated Feed Mills Manufacturing Corporation (IFMC)
➢ North Luzon Railways Corporation (NORTHRAIL)
➢ Inter-Island Gas Service, Inc. (IIGSI)
➢ LBP Financial Services SpA (Rome, Italy) (LBP-FSS) ➢ Paskuhan Development, Inc. (PDI)
➢ LBP Remittance Company (USA) (LBP-RC) ➢ Phil. Centennial Expo '98 Corp. (EXPO FILIPINO)
➢ LBP Singapore Representative Office (LBP-SRO)
➢ LBP Taiwan Representative Office (LBP-TRO) ➢ Philpost Leasing and Financing Corporation (PLFC)
 UNDER ABOLISHMENT
➢ Under abolishment ➢ Philippine Forest Corporation (PFC)
➢ AFP Retirement and Separation Benefits System (AFP- ➢ Philippine Fruits and Vegetables Industries, Inc. (PFVII)
RSBS)
➢ Philippine Sugar Corporation (PHILSUCOR)[c]
➢ Alabang–Sto. Tomas Development, Inc. (ASDI)
➢ Philippine Veterans Assistance Commission (PVAC)
➢ CDCP Farms Corporation (CDCP-FC)
➢ Philippine Veterans Investment Development Corporation
➢ Disc Contractors, Builders and General Services, Inc. (PHIVIDEC)
(DISC)
➢ PNOC Alternative Fuel Corp. (PNOC-AFC)
➢ First Cavite Industrial Estate, Inc. (FCIEI)
➢ PNOC Development and Management Corporation (PNOC-DMC)
➢ HGC Subic Corporation (HGC-SC)
➢ PNOC Shipping and Transport Corporation (PNOC-STC)
➢ Human Settlements Development Corporation (HSDC)
➢ Quedan and Rural Credit Guarantee Corporation (QUEDANCOR)
➢ National Agri-Business Corporation (NABCOR)
➢ San Carlos Fruits Corporation (SCFC)
➢ NIA Consult, Inc. (NIACI)
➢ Technology Resources Center (TRC)
➢ Northern Foods Corporation (NFC)[c]
➢ Tierra Factors Corporation (TFC)
➢ Panay Railways Inc. (PRI)[c]
➢ Traffic Control Products Corporation (TCPC)
➢ Partido Development Administration (PDA)
➢ Zamboanga National Agricultural College – Rubber Estate Corp.
➢ Philippine Agricultural Development and Commercial (ZREC)
Corporation (PADCC)
 DISSOLVED OR ABOLISHED

➢Bataan Technology Park, Inc. (BTPI)

➢Cottage Industry Technology Center (CITC)
➢National Livelihood Development Corp. (NLDC)
➢People's Credit and Finance Corporation (PCFC)
 PRIVATIZED

➢Southern Utility Management and Services, Inc. (SUMSI)

 MERGED GOCCS

➢Home Guaranty Corporation (HGC)

➢United Coconut Planters Bank (UCPB)
 GOCCS DISPOSED BY THE PRIVATIZATION AND
MANAGEMENT OFFICE

➢Menzi Development Corporation (MDC)

 [REPUBLIC ACT NO. 10149]

“AN ACT TO PROMOTE FINANCIAL VIABILITY AND FISCAL DISCIPLINE IN

GOVERNMENT-OWNED OR -CONTROLLED CORPORATIONS AND TO
STRENGTHEN THE ROLE OF THE STATE IN ITS GOVERNANCE AND
MANAGEMENT TO MAKE THEM MORE RESPONSIVE TO THE NEEDS OF
PUBLIC INTEREST AND FOR OTHER PURPOSES.”
 GOCCS EXCLUDED FROM THE COVERAGE OF
REPUBLIC ACT NO. 10149

➢Bangko Sentral ng Pilipinas (BSP)

➢Central Bank – Board of Liquidators (CB-COL)
➢Development Academy of the Philippines (DAP)
➢Philippine International Convention Center (PICC)
➢PHIVIDEC Panay Agro-Industrial Corp. (PPAlC)
 RESEARCH INSTITUTIONS

➢Lung Center of the Philippines (LCP)

➢National Kidney and Transplant Institute (NKTI)
➢Philippine Center for Economic Development (PCED)
➢Philippine Children's Medical Center (PCMC)
➢Philippine Heart Center (PHC)
➢Philippine Institute for Development Studies (PIDS)
➢Philippine Institute of Traditional and Alternative Health Care (PITAHC)
➢Philippine Rice Research Institute (PRRI)
 ECONOMIC ZONE AUTHORITIES

➢Aurora Pacific Economic Zone and Freeport Authority (APECO)

➢Authority of the Freeport Area of Bataan (AFAB)
➢Cagayan Economic Zone Authority (CEZA)
➢Freeport Services Corporation (FSC)
➢Northeastern Luzon Pacific Coastal Services, Inc. (NLPCS)
➢Philippine Economic Zone Authority (PEZA)
➢Phividec Industrial Authority (PIA)
➢Subic Bay Metropolitan Authority (SBMA)
➢Zamboanga City Special Economic Zone Authority (ZCSEZA)
 CREATED BY A SUPREME COURT DECISION

➢Radio Philippines Network (RPN)

 SUI GENERIS

• Millennium Challenge Account Philippines (MCAP)

THANK YOU