GOCC officials start quitting under orders from Palace
By Aubrey Rose A. Inosante, Reporter
TOP OFFICIALS of state-run firms have started to submit courtesy resignations, Executive Secretary Lucas P. Bersamin said on Thursday, giving the government a free hand to overhaul the leadership of government-owned and -controlled corporations (GOCCs) following a similar revamp of the Cabinet earlier.
The Governance Commission for GOCCs (GCG) ordered all non ex-officio chairpersons, CEOs, and appointive board members to resign, in accordance with a May 21 Palace memorandum.
Mr. Bersamin said the GCG will process all the resignations, but the Office of the President will review the resignations of GOCC heads.
“Although that memorandum said that the GOCC resignation should come through us, we will make it clear to the GCG that only the resignations of the GOCC heads should be reviewed by us,” he said.
Those who have filed resignations include Lynette V. Ortiz, president and CEO of the Land Bank of the Philippines, Edwin M. Mercado, Philippine Health Insurance Corp. president and CEO, and Philippine Economic Zone Authority Director General Tereso O. Panga.
“I tendered my courtesy resignation Tuesday, as directed by the President to all heads of agencies to give the President a free hand,” Mr. Panga told BusinessWorld via Viber.
Philippine Reclamation Authority (PRA) Chairman Alexander T. Lopez told BusinessWorld, also via Viber:“In full respect and faithful support of the directive of our beloved President Ferdinand R. Marcos Jr., I have submitted my courtesy resignation as Chairman of the PRA.”
Mr. Lopez said the GOCC overhaul is an “essential step” to the realization of the goals of Bagong Pilipinas.
Government Service Insurance System President and General Manager Jose Arnulfo A. Veloso said he resigned to give the President full discretion in “determining the best path forward for his administration.”
Philippine Amusement and Gaming Corp. (PAGCOR) Chairman and CEO Alejandro H. Tengco and members of its board resigned last week, in advance of the GCG notice to resign dated May 26.
Joining Mr. Tengco were PAGCOR President and Operating Officer Wilma T. Eisma and directors Jose Maria C. Ortega, Francis Democrito C. Concordia and Gilbert Cesar C. Remulla.
Light Rail Transit Authority administrator Hernando T. Cabrera said he submitted his resignation to Malacañang shortly after receiving notice from the GCG.
Manila International Airport Authority General Manager Eric Jose C. Ines confirmed he has resigned.
The Development Bank of the Philippines has yet to issue a statement on the status of its affected officials.
The Department of Finance reported that GOCCs remitted P76 billion worth of dividends to the Treasury as of May and projects the full-year total to exceed the 2024 tally of P138.46 billion.
Mr. Bersamin said he does not expect any disruptions as officials are expected to remain in place until their replacements are appointed.
“The stability of policies will continue. The policy directions have been issued to these offices by the President and the governing or the supervising cabinet secretaries so there is a clear path for all of them to see, to follow and to traverse,” he said.
Maharlika Investment Fund President and Chief Executive Officer Rafael D. Consing, Jr. said the presidential order will not cause delay in operations and revenue generation.
“The directive for courtesy resignations explicitly requires officials to continue performing their duties, precisely to ensure no disruption to public service or revenue generation,” Mr. Consing, who has resigned, told BusinessWorld via Viber.
Filomeno S. Sta. Ana III, coordinator of Action for Economic Reforms, dismissed the call for courtesy resignations as “simply a propaganda ploy.”
“It’s bizarre that he made a blanket statement calling for the resignation of all, instead of protecting those who have performed well and firing the incompetents,” he said.
