DOF unlocks funds through asset privatization

The Department of Finance (DOF) is intensifying efforts to privatize idle and non-performing government assets to generate funds for national development and reduce debt.

Finance Secretary Ralph Recto highlighted the cost of maintaining these unproductive assets, emphasizing the need to redirect resources toward addressing the country’s pressing needs.

“These assets are no longer productive and drain the national government’s resources through management, security, and maintenance costs. By disposing of them, we eliminate unnecessary expenditures and unlock resources for our people,” Recto said.

The initiative operates under Executive Order 323, which established the Inter-agency Privatization Council (PrC) and the Privatization Management Office (PMO). These bodies supervise the privatization process to promote private sector participation and maximize cash recovery.

The PrC, chaired by Recto, ensures transparency and fairness in the sale of properties, with base prices determined by third-party valuations. Updated guidelines introduced in September 2024 further institutionalized clear and transparent procedures to bolster investor confidence.

The PMO currently manages 28,665 non-performing assets transferred for privatization. Without this initiative, funds needed for national development would be spent on managing, securing, and maintaining these properties.

The DOF collaborates with institutions like the Social Security System and Government Service Insurance System to convert some assets into long-term investments for pension funds.

Privatizing idle assets is seen as a win-win solution, providing opportunities for investors while generating funds for priority programs that will benefit the Filipino people.