The Privatization Council’s (PrC) new guidelines aim to accelerate the disposal of non-performing assets and allow the national government to generate additional non-tax revenues while encouraging ordinary Filipinos to take part in selling these assets.
“Privatization of non-performing assets is among the strategic moves to raise much-needed revenues to fund the growing needs of our people,” Finance Secretary Ralph Recto said in a statement on Thursday.
“And by opening the doors for ordinary Filipinos to take part, we are also creating investment opportunities for them while contributing to nation-building,” he added.
In the same statement, the Department of Finance
(DOF) said the revised guidelines which took effect on Tuesday, March 11, are now more efficient, transparent and inclusive as they include the ability of the private sector to provide unsolicited offers, alternative modes of disposition, and the accreditation and use of brokers.
The government aims to raise P101 billion from the privatization of state assets this year, according to the Budget of Expenditures and Sources of Financing for 2025.
“These (non-performing) assets do not generate economic activity or government income (by way of taxes) while it actually costs the national government money to maintain them,” said Catherine Fong, finance undersecretary for privatization and partnerships group, also in the same statement.
“We allocate budgetary support for the Privatization Management Office (PMO) for upkeep and pre-disposition activities, and instead of raising revenue and helping stimulate the economy, these assets are a burden,” she added.
The PrC oversees all national government privatization initiatives while the PMO sells assets of government financial institutions and certain government-owned or controlled corporations.
The PrC was in charge of revising the Guidelines on the Privatization and Disposition of Assets to institutionalize and harmonize its 24-year-long policies and processes to ensure that public assets are put to productive use by the private sector.
The new guidelines mandate the creation and maintenance of an organized and informative asset registry with digital versions, the DOF said.
“We sincerely hope to receive offers from ordinary citizens wishing to own their own land while helping the national government create better value by speedily disposing of these assets,” Fong said.
The disposition of assets is published in national newspapers and posted on government websites to let the public know these are for sale.
The terms and conditions of the sale are unanimously approved by the council members.
In setting the minimum base price for each asset, the PrC uses the existing fair market value as according to assessments by third-party valuations and appraisals.
The guidelines also give transparency to every transaction, and accelerate asset disposition through defined timelines, while facilitating a smooth and straightforward process from appraisal to contract signing, the DOF said.
