Question & AnswerQ&A (EXECUTIVE ORDER NO. 37)
The National Government reaffirms its privatization policy to promote an orderly, coordinated, and efficient privatization of government entities, assets, or activities that are better managed, undertaken, or owned by the private sector.
The Committee on Privatization (COP) and the Asset Privatization Trust (APT) were created to oversee the privatization program.
Disposition entities must submit their privatization action plans to the COP within one (1) month from the issuance of the Executive Order.
It should contain a description of the privatization process to be adopted and a timeframe for each step, including an offer to sell the company’s shares or assets within five (5) months from the approval by the COP.
The Government Corporate Monitoring and Coordinating Committee (GCMCC) is tasked to review GOCCs approved for retention and recommend companies or assets for privatization.
The recommendation must be submitted to the COP within two (2) months from the issuance of the Executive Order.
Other arrangements include leasing of assets, management and maintenance contracts, and build-operate-transfer (BOT) schemes.
At least fifty per cent (50%) of the net proceeds derived from the sale of shares or assets must be remitted to the National Government.
Subsidiaries of the Government Service Insurance System and the Social Security System are exempted.
The COP is empowered to issue necessary rules and regulations for implementing the order within thirty (30) days of its issuance.
The Order took effect immediately upon its signing on December 2, 1992.
They must identify assets or activities better undertaken by the private sector and either implement privatization directly or submit recommendations to the COP within three (3) months.
Net proceeds mean the gross proceeds from the sale less related liabilities and selling expenses.
Heads of departments must submit recommendations to the COP and may consult the COP for assistance or technical grants administered by the Department of Finance.