GOCC 20-year gains “hocked,” privatized for Maharlika



By Herman Tiu Laurel


President Ferdinand “Bongbong” Marcos Jr. went to the Mecca of the global financial oligarchy in the hopes of raising investments for the development of the post-pandemic Philippines economy. Investments are being sought as borrowings have already gone sky high amounting to P 13.64-trillion pesos or $ 246.34-billion. This debt is expected to grow even higher to a total debt of P 14.63-trillon by the end of 2023.

            The Maharlika Investment Fund (MIF) sovereign wealth was envisioned to raise additional funds for the Philippines through investments and not new debts. However, it has been very controversial from the start and resistance from the people has been great due to its initial announcement that the pension funds of workers (SSS and GSIS) and government banks’ fund would be used to capitalize it.

            The theory was, the MIF will earn from investors to fund government projects. It all sounded nice and neat, except that investments can and do go very sour, as did many in the world when the MIF was being introduced. Norway’s sovereign Norges Bank Investment Management (NBIM), the world’s biggest sovereign wealth fund, lost $215-billion in 2022 amid the global downturn.

            Similarly, Singapore’s Temasek sovereign wealth fund lost $ 245-million in November due to a scandalous crypto-currency failure in the U.S., the FTX cryptocurrency scam that got mixed up with Democratic Party politics in the US where Temasek invested. This did not help the Philippine MIF, which was being promoted by the PBBM administration at the same time.

            The suspicion of the Filipino public was aroused further when news came out that the amount of P 175-billion from the Social Security System and the Government Service and Insurance System would to be tapped to capitalize the MIF sovereign fund. The resulting uproar forced the government later pull out the SSS and GSIS from the MIF project.

                The uproar has lasted to this day despite Lower House approval of the MIF project that remains stuck in the Senate at present. The Senate is being sensitive, for once, to the uproar from the people. Even Congressman Joey Salceda admitted this in his January 2023 statement at Davos, WEF, where he was quoted in news reports, “…acknowledged that he does not see the Senate passing the original version.”

               Joey Salceda went to the Davos World Economic Forum summit, to backstop PBBM. While there, he laid out a plan that he deems to be more acceptable. Following is the report from the Manila Times of January 21, 2023:

            “Salceda said about P44.3 billion in annual GOCC dividends will be ‘securitized’ for 20 years. Applying certain discount rates, the amount could reach P765.96 billion, he said. The government will then sell shares of stocks in the Fund to big investment banks at an initial public offering (IPO).’Upon execution of the IPO, the Fund would no longer a GOCC, it will be essentially another listed company in the Philippine Stock Market,’ Salceda said.”

            The key words in Salceda’s plan are “GOCC dividends” or profits of over 200 Government Owned and Controlled Corporations ranging from the Land bank to GSIS to SSS and DBP etc. I repeat: the profits of 200 Philippine GOCCs will be “securitized”, which means the “conversion of an asset, into marketable securities, typically for the purpose of raising cash by selling them to other investors.”

                20 years of dividends of 200 GOCC’s will be in hock to the “investors” that they can trade; and to trade they will be entered into the stock market for IPO (Initial Public Offering) which makes them private thereafter. Here’s Salceda’s explanation:

“The government will then sell shares of stocks in the fund to big investment banks at an initial public offering (IPO).’Upon IPO, it is no longer a GOCC, it will be essentially another listed company in the Philippine Stock Market,” Salceda said.’ He said the recommendation is that the government own less than 50 percent, ‘so it will be private basically ,… $20 billion of assets, made liquid through securitization, would be a strong draw for investor,“ Salceda said.

How can the common man understand this overly-complicated process? Maybe the Senate will finally be able to pass the MIF knowing that the public will be too confused to understand and just let it be. To simplify my explanation to the public uses the term “sanla”, or pawn to describe “securitize”. When you pawn something to the pawnshop, you can’t get it back until you pay back the loan – in this case, the “investment” – for 20 years; but by then, it’s already privatized.

Below is from Wikipedia of the list of Philippine GOCC’s. Look it over and try to figure out how much assets the “investors” will rake in, and probably lose for the government in a few years. The list takes a lot of space, three pages of bond paper in fact but not many people understand the enormity of the GOCC field for “investors” to prey upon.

                In fact, in 2022 the GOCC dividend remittance hit all-time high of P375 billion, why do we need the Mahalika Investment Fund to invite foreign “investors” to come in and take 20-years of our GOCCs’ dividends up front when it is already providing so much funds for the government today and every year in the next 20 years of the proposed plan of Salceda and the Davos people behind him?    

To see the report on the GOCC dividends you can go to: “GOCC dividend remittance hits all-time high of P375 billion“ ( https://www.philstar.com/business/2022/06/30/2191835/gocc-dividend-remittance-hits-all-time-high-p375-billion#:~:text=For%202022%2C%20the%20government%20has,the%20same%20period%20last%20year. ) among other  reports, and the figures are not always complete due to various exceptions such as “dividend exceptions” issued once in a while to help particular GOCCs.

                “In the Philippines, a government-owned and controlled corporation (GOCC), sometimes with an “and/or”, is a [1] is a state-owned enterprise that conducts both commercial and non-commercial activity. Examples of the latter would be the Government Service Insurance System (GSIS), a social security system for government employees. There are over 200 GOCCs as of 2020.[2] GOCCs both receive subsidies and pay dividends to the national government.

                Here now is the list of GOCCs, just scan it to see how enormous the jackpot of the Davos “investors” will reap:

Government financial institutions

Banking institutions

Al-Amanah Islamic Investment Bank of the Philippines (AIIBP)

Development Bank of the Philippines (DBP)

DBP Data Center, Inc. (DCI)

Land Bank of the Philippines (LBP)

Land Bank Countryside Development Foundation, Inc. (LCDFI)

LBP Resources and Development Corporation (LBRDC)

Overseas Filipino Bank (OFB)

UCPB Savings Bank (UCPB-SB)[a]

Non-banking institutions

Credit Information Corporation (CIC)

DBP Leasing Corporation (DBP-LC)

LBP Insurance Brokerage, Inc. (LIBI)

LBP Leasing and Finance Corporation (LLFC)

National Development Company (NDC)

National Home Mortgage Finance Corporation (NHMFC)

Philippine Crop Insurance Corporation (PCIC)

Philippine Deposit Insurance Corporation (PDIC)

Small Business Corporation (SBCorp)

Social Housing Finance Corporation (SHFC)

Philippine Guarantee Corporation

UCPB Leasing and Finance Corporation (ULFC)

UCPB Securities, Inc. (USI)

Social security institutions

Employees Compensation Commission (ECC)

Government Service Insurance System (GSIS)

Home Development Mutual Fund (Pag-IBIG Fund)

Philippine Health Insurance Corporation (PhilHealth)

Social Security System (SSS)

Veterans Federation of the Philippines (VFP)

Trade, area development, and tourism sector


Center for International Trade Expositions and Missions (CITEM)

Duty Free Philippines Corporation (DFPC)

Philippine International Trading Corporation (PITC)

Philippine Pharma Procurement, Inc. (PPPI)

National Food Authority (NFA)

Planters Products, Inc. (PPI)

Planters Foundation, Inc. (PFI)

Area development

Bases Conversion and Development Authority (BCDA)

Clark Development Corporation (CDC)

John Hay Management Corporation (JHMC)

Laguna Lake Development Authority (LLDA)

National Housing Authority (NHA)

Palacio del Gobernador Condominium Corporation (PDGCC)

Philippine Reclamation Authority (PRA)

Poro Point Management Corporation (PPMC)

Quezon City Development Authority (QCDA)

Southern Philippines Development Authority (SPDA)

Tourism Infrastructure and Enterprise Zone Authority (TIEZA)


Corregidor Foundation, Inc. (CFI)

Marawi Resort Hotel, Inc. (MRHI)

Philippine Retirement Authority (PRA)

Tourism Promotions Board (TPB)

Educational and cultural sector


Boy Scouts of the Philippines (BSP)

Girl Scouts of the Philippines (GSP)

Philippine Tax Academy (PTA)


Cultural Center of the Philippines (CCP)

Nayong Pilipino Foundation (NPF)

Gaming sector

Philippine Amusement and Gaming Corporation (PAGCOR)

Philippine Charity Sweepstakes Office (PCSO)

Energy and materials sector


National Electrification Administration (NEA)

National Power Corporation (NPC)

National Transmission Corporation (TRANSCO)

Philippine National Oil Company (PNOC)

Power Sector Assets and Liabilities Management Corporation (PSALM)

PNOC Exploration Corporation (PNOC-EC)

PNOC Renewables Corporation (PNOC-RC)

Philippine Electricity Market Corporation (PEMC)


Batong Buhay Gold Mines, Inc. (BBGMI)

Bukidnon Forest, Inc. (BFI)

Natural Resources Development Corporation (NRDC)

Philippine Mining Development Corporation (PMDC)[b]

Agriculture, fisheries, and food sector

Agriculture and fisheries

National Dairy Authority (NDA)

National Tobacco Administration (NTA)

Philippine Coconut Authority (PCA)

Philippine Fisheries Development Authority (PFDA)


Cagayan de Oro Oil Company, Inc. (CAGOIL)

Food Terminal Inc. (FTI)[c]

Granexport Manufacturing Corporation (Granex)

Iligan Coconut Industries, Inc. (ILICOCO)

Legaspi Oil Company, Inc. (LEGOIL)

National Sugar Development Company (NASUDECO)[c]

San Pablo Manufacturing Corporation (SPMC)

Southern Luzon Coconut Oil Mill, Inc. (SOLCOM)

Utilities and communications sector


Cebu Port Authority (CPA)

Civil Aviation Authority of the Philippines (CAAP)

Clark International Airport Corporation (CIAC)

Davao International Airport Authority (DIAA)

Light Rail Transit Authority (LRTA)

Local Water Utilities Administration (LWUA)

Mactan–Cebu International Airport Authority (MCIAA)

Manila International Airport Authority (MIAA)

Metropolitan Waterworks and Sewerage System – Corporate Office (MWSS-CO)

Metropolitan Waterworks and Sewerage System – Regulatory Office (MWSS-RO)

National Irrigation Administration (NIA)

PEA Tollway Corporation (PEA-TC)

Philippine Aerospace Development Corporation (PADC)

Philippine National Construction Corporation (PNCC)[c]

Philippine National Railways (PNR)

Philippine Ports Authority (PPA)


APO Production Unit, Inc. (APO-PUI)

People’s Television Network, Inc. (PTNI)

Philippine Postal Corporation (PHLPost)

Healthcare services sector

La Union Medical Center (LUMC)

Realty and/or holding companies

Anglo Ventures Corporation

AP Holdings, Inc.

ARC Investors, Inc.

ASC Investors, Inc.

Batangas Land Company, Inc. (BLCI)

Fernandez Holdings, Inc.

First Meridian Development, Inc.

G. Y. Real Estate, Inc. (GYREI)

Kamayan Realty Corporation (KRC)

Pinagkaisa Realty Corporation (PiRC)

Randy Allied Ventures, Inc.

Rock Steel Resources, Inc.

Roxas Shares, Inc.

San Miguel Officers Corp. Inc.

Soriano Shares, Inc.

Te Deum Resources, Inc.

Toda Holdings, Inc.

Valhalla Properties, Inc.

GOCCs supervised by the Presidential Commission on Good Government

See also: Presidential Commission on Good Government

Banahaw Broadcasting Corporation (BBC)

Bataan Shipyard and Engineering Company (BASECO)

Chemfields, Inc. (CI)

Independent Realty Corporation (IRC)

Mid-Pasig Land Development Corporation (MLDC)

Performance Investment Corporation (PIC)

Piedras Petroleum Company, Inc. (PIEDRAS)

UCPB–CIIF Finance and Development Corporation (COCOFINANCE)

UCPB–CIIF Foundation, Inc.

United Coconut Chemicals, Inc. (COCOCHEM)

United Coconut Planters Bank General Insurance, Inc. (COCOGEN)

United Coconut Planters Life Assurance Corporation (COCOLIFE)

Under privatization

GSIS Family Bank (GSIS-FB)

Intercontinental Broadcasting Corporation (IBC)

Monterrosa Development Corporation (MDC)

Non-operational, inactive, or deactivated

Anchor Estate, Inc. (AEI)

Aviation Services and Training Institute (ASTI)

BCDA Management and Holdings, Inc. (BMHI)

Calauag Quezon Province Integrated Coconut Processing Plant, Inc. (CQPICPPI)

Clark Polytechnic Development Foundation (CPDF)

DBP Management Corporation (DBPMC)

First Centennial Clark Corporation (FCCC)

GSIS Mutual Fund, Inc. (GSIS-MFI)

GSIS Properties, Inc. (GSIS-PI)

Integrated Feed Mills Manufacturing Corporation (IFMC)

Inter-Island Gas Service, Inc. (IIGSI)

LBP Financial Services SpA (Rome, Italy) (LBP-FSS)

LBP Remittance Company (USA) (LBP-RC)

LBP Singapore Representative Office (LBP-SRO)

LBP Taiwan Representative Office (LBP-TRO)

LWUA Consult, Inc. (LWUA-CI)

Manila Gas Corporation (MGC)

Masaganang Sakahan, Inc. (MSI)

Meat Packing Corporation of the Philippines (MPCP)

Metro Transit Organization, Inc. (MTOI)

NDC–Philippine Infrastructure Corporation (NPIC)

North Davao Mining Corporation (NDMC)

North Luzon Railways Corporation (NORTHRAIL)

Paskuhan Development, Inc. (PDI)

Phil. Centennial Expo ’98 Corp. (EXPO FILIPINO)

Philpost Leasing and Financing Corporation (PLFC)

Under abolition

AFP Retirement and Separation Benefits System (AFP-RSBS)

Alabang–Sto. Tomas Development, Inc. (ASDI)

CDCP Farms Corporation (CDCP-FC)

Disc Contractors, Builders and General Services, Inc. (DISC)

First Cavite Industrial Estate, Inc. (FCIEI)

HGC Subic Corporation (HGC-SC)

Human Settlements Development Corporation (HSDC)

National Agri-Business Corporation (NABCOR)

NIA Consult, Inc. (NIACI)

Northern Foods Corporation (NFC)[c]

Panay Railways Inc. (PRI)[c]

Partido Development Administration (PDA)

Philippine Agricultural Development and Commercial Corporation (PADCC)

Philippine Forest Corporation (PFC)

Philippine Fruits and Vegetables Industries, Inc. (PFVII)

Philippine Sugar Corporation (PHILSUCOR)[c]

Philippine Veterans Assistance Commission (PVAC)

Philippine Veterans Investment Development Corporation (PHIVIDEC)

PNOC Alternative Fuel Corp. (PNOC-AFC)

PNOC Development and Management Corporation (PNOC-DMC)

PNOC Shipping and Transport Corporation (PNOC-STC)

Quedan and Rural Credit Guarantee Corporation (QUEDANCOR)

San Carlos Fruits Corporation (SCFC)

Technology Resources Center (TRC)

Tierra Factors Corporation (TFC)

Traffic Control Products Corporation (TCPC)

Zamboanga National Agricultural College – Rubber Estate Corp. (ZREC)

Dissolved or abolished

Bataan Technology Park, Inc. (BTPI)

Cottage Industry Technology Center (CITC)

National Livelihood Development Corp. (NLDC)[d]

People’s Credit and Finance Corporation (PCFC)


Southern Utility Management and Services, Inc. (SUMSI)

Merged GOCCs

Home Guaranty Corporation (HGC)[e]

United Coconut Planters Bank (UCPB)[f]

GOCCs disposed by the Privatization and Management Office

Menzi Development Corporation (MDC)

GOCCs excluded from the coverage of Republic Act No. 10149

Bangko Sentral ng Pilipinas (BSP)

Central Bank – Board of Liquidators (CB-COL)

Development Academy of the Philippines (DAP)

Philippine International Convention Center (PICC)

PHIVIDEC Panay Agro-Industrial Corp. (PPAlC)

Research institutions

Lung Center of the Philippines (LCP)

National Kidney and Transplant Institute (NKTI)

Philippine Center for Economic Development (PCED)

Philippine Children’s Medical Center (PCMC)

Philippine Heart Center (PHC)

Philippine Institute for Development Studies (PIDS)

Philippine Institute of Traditional and Alternative Health Care (PITAHC)

Philippine Rice Research Institute (PRRI)

Economic zone authorities

Aurora Pacific Economic Zone and Freeport Authority (APECO)

Authority of the Freeport Area of Bataan (AFAB)

Cagayan Economic Zone Authority (CEZA)

Freeport Services Corporation (FSC)

Northeastern Luzon Pacific Coastal Services, Inc. (NLPCS)

Philippine Economic Zone Authority (PEZA)

Phividec Industrial Authority (PIA)

Subic Bay Metropolitan Authority (SBMA)

Zamboanga City Special Economic Zone Authority (ZCSEZA)

Created by a Supreme Court decision

Radio Philippines Network (RPN)

Sui generis

Millennium Challenge Account Philippines (MCAP) – end list.

             PBBM is quoted by various newspaper of January 25, 2023 to reject the proposal raised by his finance advisers like Joey Salceda, including secretary Ben Diokno whom PBBM, saying in agreement with Senate critics that the use of GOCC fund for the Maharlika Investment Fund (MIF) is illegal, but is using the term “dividend” a loophole?

             PBBM is quoted saying, “You cannot use funds of the GOCC. Pera ng gobyerno ‘yun (That’s government’s money). What will the government spend? It was a proposal. It’s not something that we have adopted,” but if that options out where is he going to get funds for the MIF plan he personally endorse? As for real “investors”, they are not coming here in spite of much ballyhooed government sales pitches: electricity too high, labor unions ill-disciplined, political interference and red tape intolerable.

            What PBBM can learn something new in sourcing the funds for Philippine economic recovery which tis article shows – internal sources, such as the GOCC dividends, is there to be tapped. GOCC dividends which run to hundreds of billions annually are not wisely used. And, what I and others like the late nationalist economist Alejandro Lichauco proposed and tapped by Marcos Sr. – generate huge non-tax revenues by re-nationalizing power, water, telecoms and public infrastructure that generate at least a trillion annually instead of giving them to oligarchs that grabbed those from government after EDSA I.

            There’s another source, “Government Frugality”, radically cut out unnecessary government spending such as the new P 10-billion Senate building (ex. onions supply solution needs only a cold chain facility would cost only P 6-billion). Cutting down on debt and wasteful spending (the P 210-million per annum for each senator could cut out by shifting to a parliamentary system).  Cutting down government corruption estimated to reach P 700-billion a year would cut down our need for more debt dramatically.

Instead of these practical measures PBBM is increasing debt by up to P 150-billion with new bond offerings and expanding the national budget to P 5.27-trillion from  5% higher than 2022, surrounding himself with more and more oligarch-cronies, letting the extravagances of the traditional political elite class free reign and allow foreign financial predators to prey on the country. This is not the way towards National Economic Salvation, this is the Road to Perdition.

Unlike his father President Ferdinand E. Marcos, Sr. who launched a Revolution, PBBM is continuing the counter-revolution Cory Aquino started. There time to change course and return to continue that revolution, will PBBM have the perspicacity and courage to do so?

<strong>Herman “Ka Mentong” Tiu Laurel</strong>
Herman “Ka Mentong” Tiu Laurel

is a broadcast journalist. He is a former columnist of Daily Tribune (INFOWARS and DIE HARD III; Mondays and Wednesday) and OpinYon (Consumers’ Demand!, Critic’s Critic, and People’s Struggle; weekly).
He hosted Talk News TV and Journeys: Chronicles of our Asian Century, both on Global News Network.
He is now the host of the radio and live stream program Global Talk News Radio for Radyo Pilipinas 1 – 738AM, which broadcasts every Sunday 8AM to 10AM.
While in quarantine, he is hosting the live stream program Power Thinks on his personal Facebook page Herman Laurel (fb.com/hermantiulaurel) and the Global Talk News Radio Facebook page (fb.com/globaltalknewsradio)
He was also the former Administrator of the Philippine Refugee Processing Center (PRPC; now called the Bataan Technology Park, Inc.) during the administration of Corazon C. Aquino.

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