Philippines commission recommends separation of functions at PAGCOR
News on 27 Apr 2018
News on 27 Apr 2018
The Governance Commission for Government-owned and Controlled Corporations (GOCCs) in the Philippines has recommended that the Philippine Amusement and Gaming Authority should separate its regulatory functions from its commercial businesses.
In a statement this week the Commission reported that it has reviewed the mandates of 12 GOCCs in relation to competitive neutrality issues, as part of its commitment to the Philippine Development Plan, and that among the organisations considered was the Philippine Amusement and Gaming Corporation (PAGCOR) which the GCG has recommended to President Rodrigo Roa Duterte for separation of commercial and regulatory functions.
The Commission highlighted Pagcor’s conflicting proprietary activities and regulatory functions in which its operation of casinos conflicts with its function as a gaming regulator.
The Governance Commission is committed to review the mandates of all 123 GOCCs under its jurisdiction, as well as recommend and implement appropriate actions to be undertaken for those with identified competitive neutrality issues, before the end of President Duterte’s term.
“The Governance Commission will be working closely with the Philippine Competition Commission (PCC), the National Economic Development Authority (NEDA), the Department of Justice (DOJ), and the Department Trade and Industry (DTI) to review the mandates of GOCCs, and recommend and initiate privatization or transfer of regulatory functions to the appropriate government agency,” a statement from the Commission advises.
“It is the firm belief of the Governance Commission that there should be a level playing field between GOCCs and corporations in the private sector performing similar commercial activities.
“Competitive neutrality is clearly among the policies of the State under Republic Act No. 10149 and the Ownership and Operations Manual Governing the GOCC Sector. Pursuant to Section 5(l) of the GOCC Governance Act of 2011, the Governance Commission is mandated to recommend to the President GOCCs for dispositive action “upon determination that there is a conflict between the regulatory and commercial functions of a GOCC.”
