2 GOCCs face closure; DA readies ‘pork’ raps

MANILA, Philippines - Two government-owned and controlled corporations (GOCCs) are expected to become casualties in the pork barrel controversy as they are being eyed for closure and deemed “no longer required for public interest.”

The Governance Commission for GOCCs (GCG) said they are urging President Aquino to scrap the National Agribusiness Corp. (Nabcor) and the Zamboanga del Norte College Rubber Estates Corp. (ZREC), which had been linked to the controversy over the alleged misuse of some P10 billion in Priority Development Assistance Fund (PDAF), commonly known as pork barrel. Also being considered for closure is Philippine Forest Corp. (PFC).

GCG said it “has completed its study and recently submitted to the Office of the President its recommendation to abolish ZREC and NABCOR, and is already in the process of submitting its recommendation on the abolition of PFC.”

“There are standards in the law as to when this discretion can be exercised. It need not go to Congress,” Senate President Franklin Drilon said in reaction.

“We delegated to the President the power to abolish on certain conditions. For example, the purpose for which they were formed is no longer valid or they have been losing or moribund for some time,” he said.

GCG said it is monitoring the operations of Technology Resources Center (TRC) and the National Livelihood Development Corp. (NLDC) to check them for possible infractions or if they had become irrelevant.

Based on 2012 unaudited reports, these GOCCs have a combined net worth of P3.4 billion.

One of the reasons for GCG’s recommendation was the “use of the GOCCs (concerned) for projects funded by the priority development assistance funds” of senators and congressmen. Also cited by GCG was their “redundancy with other agencies and lack of financial sustainability.”

“As GCG continues to identify GOCCs that are no longer required for public interest, it also ensures that there is an orderly transition and proper balancing of interests in the implementation of each abolition or privatization,” GCG said.

Under Republic Act 10149 or the GOCC Governance Act of 2011, GCG has the power to recommend the abolition or privatization of a GOCC.

“The abolition or privatization of a GOCC requires, among others, the transfer of assets and liabilities, and the transfer of the GOCC’s functions to another GOCC or agency that is capable of continuing the services to affected stakeholders,” GCG said. “Currently, the formation of technical working groups for the implementation of the abolitions or privatizations is being processed to ensure a coordinated and unified effort between GCG and concerned agencies.”

Case vs NGOs

Meanwhile, Agriculture Secretary Proceso Alcala said they are coordinating with the Office of the Solicitor General for the filing of “appropriate case” against non-government organizations linked to businesswoman Janet Lim-Napoles.

In a press briefing yesterday, Alcala explained how pork barrel allocations of six lawmakers ended up in Napoles-controlled Kaupdanan Para sa Mangunguma Foundation Inc. this year.

“We have even sent a communication letter to the legislator regarding the status of Kaupdanan and seeking advice for the (disbursement) of the remaining PDAF fund,” said Alcala, referring to former Camarines Sur congressman Arnulfo Fuentebella who may have been “misrepresented” by the NGO.

He said the DA is set to furnish the OSG with pertinent documents for its investigation.

The DA report showed that P83.2 million in PDAF had been allocated for Kaupdanan, of which P44.90 million had been released.

PDAF infusions into Kaupdanan were intended for the distribution of knapsack sprayers to farmers. The funds allocated, with the exception of the P5 million from Fuentebella, were fully released and liquidated.

Of Fuentebella’s PDAF allocation, only P750,000 had been released.

The five others lawmakers aside from Fuentebella are: An Waray Rep. Neil Benedict Montejo, Davao del Norte Rep. Antonio Lagdameo, Davao City Rep. Isidro Ungab, Masbate Rep. Scott Davies Lanete, and Oriental Mindoro Rep. Reynaldo Umali.

The DA report stated that Montejo poured P9.2 million into the Napoles-run NGO. The funds were fully released and liquidated. The report also said “randomly selected recipient farmers” acknowledged receipt of knapsack sprayers and foliar fertilizer.

Lagdameo allocated P1 million and Ungab, P13 million. Lanete infused P45 million into Kaupdanan, while Umali poured in P10 million.

Among DA-accredited NGOs receiving PDAF allocations are Maharlikang Lipi Foundation Inc., Kaakbay Buhay Foundation Inc., Coprahan at Gulayan Foundation Inc., Gabay at Pag-asa ng Masa Foundation Inc., Kasangga sa Magandang Bukas Foundation Inc., Kabuhayan at Kalusugang Alay sa Masa Foundation Inc.

More than P334 million in PDAF has been funneled into NGOs since August 2012. Of the amount, more than P132 million had been released, based on records. With Christina Mendez, Czeriza Valencia