Committee on Privatization
- Established with the Minister of Finance as chairman and other ministers as members, the Committee has a five-year term.
- Responsibilities involve divestment of assets to the private sector and disposal of other assets to maximize cash recovery for the government.
- Powers include identifying assets for transfer, setting guidelines, approving sales, managing rehabilitation budgets, exercising ownership rights, and overseeing the privatization program.
- It meets at least monthly; decisions on disposition require unanimity.
- Initial funding of Ten Million Pesos is appropriated.
Asset Privatization Trust (Trust)
- Created as a public trust to manage and dispose of assets for the benefit of the government.
- Objectives include quick disposition of assets and restoring facilities for private sector ownership to aid economic recovery.
- Capitalized with Ninety Million Pesos plus other authorized funds and may borrow with Committee approval.
- Trustees appointed by the President serve full-time terms, must have integrity and business competence, and should avoid conflicts of interest.
- Trustees have broad powers to implement disposition programs, manage assets, undertake rehabilitation, enter contracts, and employ personnel.
- The Trust has operational autonomy but submits periodic reports to the Committee.
Operational Provisions
- The Committee arranges transfer of non-performing assets and government corporations designated for divestment, including determining valuations.
- Assets are transferred via deeds of assignment granting the government full ownership to facilitate disposition without legal impediments.
- Parent government corporations transferred may be converted into stock corporations; boards are streamlined and appointments controlled by the Committee and Trust.
- Employer-employee relationships terminate upon privatization; employees retain accrued benefits but no guaranteed employment.
- The Trust assumes powers previously held by ministries over transferred corporations and controls budget approvals.
- Sales proceeds belong to the National Treasury except approved revolving funds retained by the Trust.
- The Trust and assets are exempt from taxes and fees related to the transfer and sale process.
- Audits are conducted by the Commission on Audit and may include private auditors.
Legal Protections and Administration
- Committee members and Trustees enjoy immunity from civil and criminal liability unless gross negligence or fraud is proven.
- The government provides legal counsel for defense in related proceedings.
- Securities and Exchange Commission may appoint receivers to protect assets at risk.
Reporting and Miscellaneous
- Regular reporting to the President and legislature on asset disposition progress is mandated.
- The proclamation supersedes earlier decrees conflicting with its provisions.
- The Proclamation takes effect immediately.