Question & AnswerQ&A (PROCLAMATION NO. 50)
The primary purpose is to promote privatization through an orderly, coordinated, and efficient program for the prompt disposition of non-performing government assets and certain government-owned or controlled corporations deemed unnecessary or inappropriate for government maintenance.
The Committee on Privatization is composed of the Minister of Finance as Chairman, and members including the Minister of Trade and Industry, the Director General of the National Economic and Development Authority, the Minister of Budget and Management, and the Minister in charge of the Presidential Commission on Government Reorganization.
The Committee can identify assets for transfer and divestment, approve or disapprove sales or dispositions of such assets, determine which assets go to the Asset Privatization Trust or other institutions, set guidelines for asset management, and monitor the privatization program.
The Asset Privatization Trust is a public trust created to take title, manage, and dispose of assets transferred for privatization, aiming to restore operational viability and generate maximum cash recovery for the National Government within five years.
The Trust is managed by a Chief Executive Trustee and four Associate Executive Trustees appointed by the President upon the Committee’s recommendation, serving full-time for up to five years or the Trust’s lifespan.
Employer-employee relations terminate by operation of law upon disposition; employees do not retain vested rights to future employment and new owners have full discretion to retain or dismiss employees, without affecting accrued benefits.
No, both the Trust and the assets held are exempt from all taxes, fees, charges, and assessments related to the transfer of ownership from government institutions to the Trust and from the Trust to private buyers.
They enjoy immunity from civil and criminal liability for acts done in good faith and not involving fraud, bad faith, gross negligence, or graft; the government will provide legal counsel and bear litigation costs unless they are found guilty of such misconduct.
Upon the Trust’s petition, the SEC may appoint a receiver to take over management of corporations at risk of asset dissipation or business paralysis, granting the receiver full powers similar to a management board under relevant laws.
The Committee must submit semi-annual reports to the President and legislature detailing asset dispositions, buyers, and terms. The Trust must report quarterly to the Committee and annually to the President and legislature on privatization performance and financial status.