LET’S HAVE MORE INDEPENDENTLY MANAGED STATE-OWNED ENTERPRISES

LET’S HAVE MORE INDEPENDENTLY MANAGED STATE-OWNED ENTERPRISES I am not proposing anything radically new. I am simply taking an old and proven idea and giving it a clearer name. Right now, we already have Government-Owned and Controlled Corporations (GOCCs). What many people do not realize is that some of these GOCCs are already financially independent and are no longer dependent on taxpayer money. In fact, they are excluded from the General Appropriations Act (GAA) because they generate and manage their own funds. I propose that we officially call them Independently Managed State-Owned Enterprises (IMSOEs). Existing examples are obvious: PAGCOR, PCSO, SSS, GSIS, PhilHealth, Pag-IBIG, and OWWA. These institutions are self-sustaining. They earn from contributions, premiums, gaming revenues, or investments. Instead of being funded by Congress, many of them even remit billions of pesos back to the national government every year. So here is my simple question: What is the logic of lumping them together with subsidy-dependent GOCCs when their nature is totally different? By formally identifying IMSOEs as a separate class, we send a strong message: that some government institutions should operate on business discipline, financial independence, and long-term sustainability, not on annual budget politics. More importantly, this opens the door to a bigger reform: converting more viable GOCCs into IMSOEs. Let me cite two classic problem cases. First, PNR (Philippine National Railways). Until today, it remains dependent on government subsidies coursed through the Department of Transportation. Officials always say rail operations are “not yet viable.” But how long is “not yet”? Five years? Twenty years? Forever? Shouldn’t there be a clear timeline and performance roadmap toward eventual self-sufficiency, even partial? In many countries, railway companies operate as state-owned enterprises that earn, reinvest, and expand like real companies. They are regulated, yes — but not permanently dependent on government charity. Second, PHLPost. It is still funded under the DICT budget. Meanwhile, the United States Postal Service has long been self-funded despite brutal competition from private couriers. Yes, it struggles — but it survives without annual congressional subsidy. Why can’t we even attempt that level of reform? If even just a few GOCCs could be converted into true IMSOEs, the government could save billions in recurring subsidies, freeing public funds for health, education, and climate resilience. We are not reinventing the wheel here. In the United States, they call them “government corporations” — like USPS, Amtrak, FDIC, and the Export-Import Bank. In China, they are known as State-Owned Enterprises (SOEs) — massive firms in energy, banking, rail, telecoms, and aviation, controlling trillions of dollars in assets. In Singapore, they are called Government-Linked Companies (GLCs) under Temasek Holdings — and instead of draining the budget, Temasek actually earns money for the state and invests globally, including in Philippine companies like Globe Telecom. So why should the Philippines remain stuck in a mindset where state enterprises are automatically treated as permanent dependents? Of course, independence must come with strong governance. IMSOEs must remain under COA audit, Congressional oversight, and professional boards — not used as political playgrounds. Financial independence without transparency is a disaster waiting to happen. But governance is an argument for reform, not an excuse to avoid it. If PAGCOR, PCSO, SSS, GSIS, PhilHealth, Pag-IBIG, and OWWA can stand on their own feet, why can’t we aim to grow more institutions into that category? The real danger is not giving state enterprises too much independence. The real danger is keeping them forever weak, subsidized, and politically fragile. It is time to stop treating all GOCCs the same. Let us formally recognize and expand the class of Independently Managed State-Owned Enterprises — and finally make public ownership synonymous with strength, efficiency, and accountability, not perpetual rescue. RAMON IKE V. SENERES www.facebook.com/ike.seneres iseneres@yahoo.com senseneres.blogspot.com 09088877282/10-12-2026