Manila: The newly issued guidelines for the disposition of government assets will allow the government to maximize non-tax revenues, the Department of Finance (DOF) said. In a statement Thursday, the DOF said it is ramping up efforts to boost non-tax revenues through privatization, in line with Executive Order No. 323, which established the Inter-agency Privatization Council (PrC) and the Privatization and Management Office (PMO).
According to Philippines News Agency, the PrC oversees all national government privatization initiatives while the PMO handles the disposition of assets of government financial institutions and certain government-owned or controlled corporations (GOCCs). To facilitate the prudent disposition process, the PrC revised the guidelines which took effect March 11.
The new guidelines now allow the private sector to provide unsolicited offers, alternative modes of disposition, and the accreditation and use of brokers. These also mandate the creation and maintenance of an organized and informative asset registry with digital versions. The DOF said the new guidelines also allow ordinary Filipinos to acquire and invest in public assets.
"Privatization of non-performing assets is among the strategic moves to raise much-needed revenues to fund the growing needs of our people. And by opening the doors for ordinary Filipinos to take part, we are also creating investment opportunities for them while contributing to nation-building," Finance Secretary Ralph Recto said.
DOF Undersecretary for Privatization and Partnerships Group (PPG) Catherine Fong, meanwhile, said these assets do not generate economic activity or government income. The government also spends money to maintain these assets. "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," Fong said.
The DOF said the disposition of assets is published through newspapers of general circulation. It will also be published on government websites to inform the public that these assets are for sale. The terms and conditions of the sale are unanimously approved by the PrC. The PrC will also set the minimum base price of each asset which is typically the fair market value as assessed by third-party valuations or appraisals.
The new guidelines also detail the purchase process from appraisal to contract signing. "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.
