DoF eyes revenues from 28,665 idle assets

The Department of Finance (DoF) said the government aims to monetize 28,665 non-performing assets through the Privatization Management Office (PMO).

"The assets we are privatizing are no longer productive and continue to drain the National Government's resources through management, security, and maintenance costs," DoF Secretary Ralph Recto said.

In a statement on Sunday, the DoF said officials are studying non-performing assets of the Social Security System and the Government Service Insurance System that can be auctioned to support pension funds.

The DoF reported that the National Government gained P4.44 billion in income from sales and leases of government assets and dividends last year. This was a 129 percent growth compared to the 2023 level, increasing the government's total non-tax revenues by 45.6 percent to P555.3 billion.

"On top of tax collections, the non-tax revenue sources help us marshal additional resources to equip the government in delivering more and better services in critical areas like healthcare, education, food security, social protection, and national security," DoF Secretary Ralph Recto said.

Last September, DoF Undersecretary Domini Velasquez said officials had been studying the privatization of government shares in Semirara Mining Corporation to further raise non-tax revenues. She said the government owns around 145 million shares in Semirara.

"We needed to scout for new funding sources without inflicting new taxes," Velasquez said.

Consunji-owned Semirara supplies coal to power plants and other industrial firms in the country.

Velasquez said five other properties have been under consideration for privatization: Star City, Mile Long Building of the National Economic and Development Authority, United Chemicals Inc., Elorde Sports and Tourism Development Corporation, and condominium units in Atrium, Makati City.

"These idle assets will not only generate revenues for the government but will also increase the value of these assets that have been lying around in Metro Manila," she said.

The DoF said Star City has an appraised value of P15 billion.