Proclamation No. 50, the original privatization law, states the rationale behind the program:
"Article I. Section 1. Statement of Policy - It shall be the policy of the state to promote privatization through an orderly, coordinated and efficient programs for the prompt of disposition of the large number of non-performing assets of the government financial institutions, and certain government-owned or controlled corporations which have been found unnecessary or inappropriate for the government sector to maintain."
It is clear from this provision that NON-PERFORMING GOVERNMENT ASSETS are primarily the target of the law. The privatization law is the offshoot of Executive Order No. 5 (1986) creating a new agency the purpose of which is "to promote an orderly, coordinated and efficient privatization of remaining government corporation, assets, activities and idle properties."
The following PERFORMING ASSETS have been privatized: PNB, PETRON, PNOC-EDC, TRANSCO. Why? Are not these clear violations of the above stated policy?
The proceeds of these dispositions are supposed to be remitted to the national treasury of which 60% is for the Agrarian Reform Fund and 40% to the General Fund. For GOCC's, 50% of the proceeds is to be remitted to the government. Is this being followed?