34 out of 118 GOCCs flunk performance test

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    ONLY 34 out of the 118 government-owned and controlled corporations (GOCCs) have passed the performance evaluation conducted by the Governance Commission for GOCCs (GCG) in 2018.

    Samuel Dagpin Jr., GCG chairman, disclosed the information as the Senate on Wednesday scrutinized the P192 million proposed budget for the agency next year.

    Dagpin said among the GOCCs which poorly performed, as reflected in the 2018 performance evaluation report, was the Philippine Health Insurance Corporation (PhilHealth), which got a rating of 78 percent. The passing rate, he said, is 90 percent.

    Dagpin said he used the 2018 performance evaluation in his office’s accomplishment report since the 2019 report is not yet available.

    Dagpin said the poor performing GOCCs are not entitled to performance-based bonuses and other incentives.

    Sen. Sherwin Gatchalian said that the “most meaningful penalty would be abolition” of the non-performing GOCCs.

    Dagpin said that has been considered by the government.

    “That would be part of the study, your honor. If they will not improve for the coming season,” Dagpin said, adding that the option is now being discussed with the mother agencies of the poor performing GOCCs.

    The GCG has the power to abolish, merge, and reorganize GOCCs, especially those which are not financially viable.

    Gatchalian said it is quite disappointing that GOCCs are not generating much income as against the subsidies given by the government, citing a report of Dagpin that only P47 billion were remitted by the 118 GOCCs in 2019, while subsidies given by the government for them reached P201 billion in the same year.

    Dagpin said the top three GOCCs which received the highest subsidies were PhilHealth, National Housing Authority, and the National Irrigation Authority.

    He said the GCG has been able to approve the abolition of a total of 30 GOCCs since 2012 which has resulted in a P3.21 billion savings from operational expenses to the government.

    He said the full liquidation of these abolished GOCCs is not yet complete, as he committed to submit to the Senate a copy of the report on the matter.