SBMA, AFAB, Phividec get GOCC status upgrades

The Subic Bay Metropolitan Authority (SBMA) and two other government-owned and controlled corporations (GOCCs) received classification upgrades from President Ferdinand Marcos Jr., according to a memorandum from Executive Secretary Lucas Bersamin.

The upgrades, outlined in Executive Order 24 series of 2011, affect the SBMA, the Authority of the Freeport Area of Bataan (AFAB), and the Phividec Industrial Authority (Phividec).

The memorandum, received by the SBMA this week, states that the upgrade requests were granted after evaluation based on Section 6 of EO 24, which governs GOCC classification and sets compensation limits for board members.

For an upgrade from Category C to B, a GOCC like the SBMA must have assets between P25 billion and P100 billion and revenues between P2.5 billion and P10 billion.

SBMA Chairman and Administrator Eduardo Jose L. Aliño thanked President Marcos and Finance Secretary Ralph G. Recto for the upgrade. He said it would allow for better incentives for board members, who play a crucial role in Subic Bay Freeport’s development.

“Their expertise is vital in boosting infrastructure, revenue collection, operations, and attracting tourists and investors,” Aliño said. “I want them to be not only decision-makers but also reliable sources of valuable ideas.”

The upgrade coincides with the SBMA’s record-breaking operating revenue of P4.116 billion in 2023, surpassing the previous high of P4.057 billion in 2022.

Meanwhile, AFAB and Phividec were upgraded from Category D to C for meeting the criteria for that category: Assets exceeding P5 billion but less than P25 billion, and revenues exceeding P500 million but less than P2.5 billion.

The memorandum was addressed to Secretary Recto with copies sent to Chairmen Aliño, Pablo Gangcayco (AFAB), and Jesus Guevarra II (Phividec).