The Department of Finance (DOF) of the Philippines announced that it has transferred over 28,000 non-performing assets to the Privatization and Management Office (PMO) for privatization, to optimize government resources and enhance fiscal liquidity.
According to the statement from the Department of Finance, a total of 28,665 non-performing assets have been transferred to the PMO. This agency is responsible for the marketing and privatization disposal of designated assets, government corporations, and other properties, while the Privatization Committee (PrC) is responsible for overall guidance and supervision.
The Privatization Committee is chaired by the Minister of Finance, with members including the ministers of the Department of Budget and Management (DBM), the Department of Trade and Industry (DTI), the National Economic and Development Authority (NEDA), and the Department of Justice (DOJ). Additionally, the National Minister of Finance and the chairman of the Presidential Commission on Good Government (PCGG) participate in the committee as non-voting members.
Finance Minister Ralph Recto stated in a declaration: "The assets we are disposing of have lost their productive value and have instead become a burden on national government resources, as management, security, and maintenance costs continue to consume the fiscal budget."
He added: "By privatizing these assets, we not only reduce unnecessary expenditures but also free up resources to meet the urgent needs of the public, thereby enhancing the efficiency of public funds utilization."
The Department of Finance further explained that if these assets continued to be held by the government, funds that could be used for national development projects would need to be used for maintenance and management.
To ensure the fairness of asset disposal, the Privatization Committee sets a minimum benchmark price for each asset, which is usually the fair market value (FMV) assessed by a third party.
This large-scale privatization not only aims to cut redundant expenditures but also reallocates resources to higher-priority national projects.
The Department of Finance stated that this move marks a more efficient step forward in financial management, unleashing greater potential for national development.
This action reflects the Philippine government's determination to optimize asset allocation, and relevant departments will continue to strengthen coordination and execution to ensure the smooth progress of the privatization process and the effective use of funds.
