Government-owned and controlled corporation

The phrase government-owned and controlled corporation (GOCC), sometimes with an "and/or"
is a term in the Philippines used to describe government-owned corporations that conduct both
commercial and non-commercial activity. Examples of the latter would be the Government Service
Insurance System, a social security system for government employees. There are over 200 GOCCs.
GOCCs both receive subsidies and pay dividends to the national government.
Under the GOCC Governance Act (Republic Act 10149; Government Owned and Controlled
Corporations (GOCC) Governance Act of 2011), GOCCs are overseen by the Governance
Commission for Government-Owned or Controlled Corporations (GCG). The Governance
Commission is the "government’s central advisory and oversight body over the public corporate
sector" according to the Official Gazette of the Philippine government. The Governance Commission
among other duties prepares for the President of the Philippines a shortlist of candidates for
appointment by the president to GOCC boards.
Many but not all GOCCs have their own charter or law outlining its responsibilities and governance.

Finances

2014 operation subsidies and program funds that GOCCs received from the national government

GOCCs receive from the government "subsidies" and "program funds". Subsidies cover the day-to-
day operations of the GOCCs when revenues are insufficient while program funds are given to
profitable GOCCs to pay for a specific program or project.
Subsidies from the National Government in 2011 amounted to 21 billion Philippine pesos. In the
2013 fiscal year, the national government gave P71.9 billion pesos to GOCCs in subsidies, nearly
twice the 44.7 billion pesos that was programmed in the budget. In 2014, 77.04 billion pesos was
spent on GOCCs by the national government, 3% of which was classified as subsidies and 97% was
classified as program funds.
In 2013, on "GOCC Dividend Day", the Philippine government received 28-billion Philippine pesos in
dividends and other forms of remittances from the 2012 operations of 38 GOCCs.[8] Eight GOCCs
remitted 1 billion pesos each: Philippine Reclamation Authority (PRA)(P1 billion pesos), Philippine
Ports Authority (PPA)(1.03-billion), Manila International Airport Authority (MIAA)(P1.54-
billion), Philippine Amusement and Gaming Corporation (PAGCOR) (P7.18-billion), Power Sector
Assets and Liabilities Management Corporation (PSALM)(P2-billion), Bases Conversion
Development Authority (BCDA)(P2.30-billion), Development Bank of the Philippines (DBP) (P3.16-
billion) and Land Bank of the Philippines (LBP) (P6.24-billion). Under Republic Act No. 7656, all
GOCCs are required to "declare and remit at least 50% of their annual net earnings as cash, stock
or property dividends to the National Government." The Commission on Audit reports that in 2013 of
the 219 profitable GOCCs, only 45 remitted a full 50% share of their dividends to the national
treasury, leaving 174 others with unremitted government shares, amounting to more than P50 billion.
Dividends remitted were only one-tenth (1/10) of the total required by law according to the
Commission.
In 2014, on "GOCC Dividend Day", the Philippine government received 32.31 billion Philippine pesos
worth of dividends and other remittances from 50 GOCCs. Seven GOCCs submitted over a billion
pesos each: Development Bank of the Philippines (DBP) with P3.616 billion; Power Sector Assets
and Liabilities Management Corporation (PSALM) with P2.5 billion; Bases Conversion Development
Authority (BCDA) with P2.107 billion; Manila International Airport Authority (MIAA) with P1.577
billion; Philippine National Oil Company-Exploration Corporation(PNOC-EC) with P1.5
billion; Philippine Ports Authority (PPA) with P1.422 billion; and Philippine Deposit Insurance
Corporation (PDIC) with P1.05 billion.