Government-Owned and Controlled Corporations (GOCCs) are a vital part of the Philippine public sector. They play an important role in both economic development and providing public services. Each GOCC has specific tasks aimed at meeting various national needs.
What are GOCCs?
A GOCC is a stock or non-stock corporation created by a special law or organized under the general corporation law, as long as the government owns or controls at least a majority of its outstanding capital stock. These entities can perform governmental (public service) or proprietary (commercial) functions, covering areas like social security, infrastructure, finance, and agriculture.
What do GOCCs do?
GOCCs implement government policies and programs, particularly in areas where private sector involvement is limited or where public welfare is at stake. Their functions include:
- Providing essential public services (e.g., health, insurance, utilities)
- Managing and developing natural resources
- Promoting economic zones and industrial growth
- Supporting agricultural and rural development
- Offering financial services and insurance to citizens and government employees
Key services offered by GOCCs
The services provided by GOCCs address the varied needs of the Filipino public. Key examples include:
- Social Security and Insurance – Organizations like the Government Service Insurance System (GSIS) and Social Security System (SSS) offer pension and insurance services to government and private sector employees.
- Healthcare – PhilHealth provides national health insurance, while specialized hospitals like the Philippine Heart Center and Philippine Children’s Medical Center offer advanced medical care.
- Banking and Finance: Land Bank of the Philippines and Development Bank of the Philippines support agricultural, industrial, and infrastructure projects through loans and financial services.
- Utilities and Infrastructure – The National Power Corporation, Philippine National Oil Company, and Philippine Ports Authority manage energy, oil, and port operations to keep the economy strong.
- Charity and Gaming – The Philippine Charity Sweepstakes Office (PCSO) and Philippine Amusement and Gaming Corporation (PAGCOR) raise funds for health and social programs through lotteries and gaming operations.
- Agriculture and Rural Development – Agencies like the Philippine Coconut Authority and Philippine Rice Research Institute support innovation and help farmers and rural communities.
How GOCCs help the government run the country smoothly
- GOCCs are designed to address important gaps in public service and economic development, especially in areas where private investment is not enough or where public interest is crucial. Their contributions include:
- Economic Stability – By managing key industries and providing essential services, GOCCs help stabilize the economy and ensure service continuity during crises.
- Revenue Generation – Many GOCCs send dividends to the national government, adding another source of public funds.
- Policy Implementation – GOCCs carry out government policies, such as universal healthcare, affordable housing, and rural electrification.
- **Public Accountability and Governance:** The Governance Commission for GOCCs (GCG) oversees these corporations to ensure transparency, accountability, and efficiency. The GCG monitors performance, suggests reforms, and makes sure that GOCCs fit with national development goals
GOCCs are essential to the Philippine government’s efforts to provide public services, promote economic growth, and support national development. Through their specialized functions and the strategic oversight of bodies like the GCG, GOCCs help ensure the country operates smoothly and serves the best interests of the Filipino people.
