Privatization of Government-Owned or Controlled Corporations (GOCCs)
- Disposition entities designated by the Committee on Privatization (COP) shall submit a privatization action plan for GOCCs approved for divestment.
- The action plan must be submitted within one month from issuance of the Executive Order.
- The plan must describe the privatization process and include a timeline.
- Sale offers for shares or assets must be made within five months from COP's approval of the plan.
Review of GOCCs Approved for Retention
- The Government Corporate Monitoring and Coordinating Committee (GCMCC) will review GOCCs approved for retention.
- This review covers those listed in Annex "B" and others.
- GCMCC is to recommend a second group of GOCCs for privatization.
- Recommendations to be submitted to the COP within two months from issuance of the order.
Designation of Disposition Entities
- COP will review and may adjust the list of disposition entities responsible for GOCC privatization.
- New disposition entities such as the Asset Privatization Trust (APT) or the National Development Company (NDC) may be designated if necessary for efficient privatization.
Sale of Idle Government Properties
- Committees under Administrative Orders Nos. 8 and 9, 1992, will submit an action plan for disposing of idle government properties.
- This plan is to be submitted to the President through the COP within three months.
Privatization of Other Government Activities
- Heads of departments, bureaus, agencies, and GOCCs shall identify assets or activities more efficiently handled by the private sector.
- Privatization modes include sale, leasing, management contracts, maintenance contracts, and build-operate-transfer (BOT) schemes.
- Entities responsible shall implement privatization when within their authority.
- For issues requiring presidential action or legislation, recommendations must be submitted to the COP within three months.
- Technical assistance and grants are accessible through the Department of Finance.
Distribution of Net Proceeds from Privatization
- Except for subsidiaries of GSIS and SSS, all GOCCs shall remit at least 50% of net proceeds from sales to the National Government.
- Net proceeds are defined as gross proceeds minus related liabilities and selling expenses.
- This remittance policy became effective October 1, 1992.
Implementation Rules and Regulations
- The COP is tasked to issue implementing rules and regulations within thirty days from issuance of the Executive Order.
Effectivity of the Order
- The Executive Order takes effect immediately upon issuance.