CEZA chief disputes claims on financial losses, locator decline and budget overrun

Cagayan Economic Zone Authority (CEZA) Administrator and Chief Executive Officer Katrina Ponce Enrile has disputed reports questioning the agency’s financial performance, number of registered businesses and 2025 expenditures, saying some figures require clarification and consideration of the agency’s financial history.

In a statement, Enrile acknowledged that CEZA faces financial challenges but maintained that its difficulties developed over several years and were influenced by changes in national government policies affecting its traditional revenue sources.

She said CEZA’s accumulated earnings stood at approximately P994 million in 2019 before declining to P453 million by the end of 2022, a reduction of P541 million, prior to her assumption of office in 2023.

By 2025, the agency’s accumulated earnings had reportedly deteriorated to a deficit of approximately P199.7 million.

Enrile said the figures showed that CEZA’s financial difficulties predated her administration, although she acknowledged her responsibility to address the agency’s current financial condition.

She said the agency must confront its financial problems without attributing all responsibility to previous administrations or overlooking its historical circumstances.

On CEZA’s registered locators, Enrile disputed a report stating that the number of registered businesses had fallen from 137 to 57.

According to her, CEZA had 101 registered locators when she assumed office in 2023 and 77 in 2025.

She attributed the reduction partly to a review of registrations, including the cancellation of non-compliant locators and the non-renewal of registrations that no longer met the agency’s requirements.

Enrile said the agency opted to present figures that accurately reflected its registered businesses rather than maintain higher numbers that could create a misleading impression of its performance.

She added that the number of registered locators should not be the sole measure of an economic zone’s performance, arguing that businesses must also be legitimate, compliant, operational and contributing to regional economic development.

On reports that CEZA exceeded its approved 2025 budget by P233.73 million, Enrile said the comparison involved different expense classifications.

She said the reported P596.21 million in expenditures included non-cash accounting expenses, while the P362.49-million approved budget covered Personnel Services and Maintenance and Other Operating Expenses.

According to Enrile, CEZA’s actual spending for the two budget categories amounted to P283.37 million, or approximately P79.12 million below the approved allocation.

She maintained that non-cash accounting expenses may affect financial statements without representing additional cash expenditures against an operating budget.

However, Enrile acknowledged the importance of addressing audit observations concerning budget planning, expenditure controls and financial monitoring, saying the agency must continue improving its financial management systems.

The CEZA chief also addressed the reported 99.7-percent decline in processing-fee collections, describing it as a genuine concern that must be understood in the context of changes affecting the agency’s traditional sources of revenue.

She said CEZA previously derived significant income from gaming-related operations, foreign employment and associated permit and visa processing activities.

Enrile cited Executive Order No. 13, issued in 2017, which strengthened the regulatory framework governing gambling activities, and Executive Order No. 74, issued in 2024, which directed the prohibition of Philippine Offshore Gaming Operations.

She also pointed to other government issuances affecting employment permits and working visas for foreign nationals.

According to Enrile, these policy changes affected businesses operating within CEZA’s jurisdiction and reduced revenues associated with their activities.

She said the agency could not disregard national government policies simply to preserve its income, but acknowledged that the decline in collections underscored the need to diversify CEZA’s economic base and attract investments in other industries.

Enrile said economic transformation would require infrastructure development, investor confidence, sound planning and sustained efforts.

She also welcomed public scrutiny of CEZA’s operations, saying accountability must be based on accurate financial information and a complete understanding of the agency’s circumstances.

The CEZA chief said she would address other issues in a subsequent statement, including infrastructure, the utilization of existing facilities, future investments and the continuing relevance of the agency’s original mandate.

CEZA is a government agency mandated to oversee the development of the Cagayan Special Economic Zone and Freeport. Its financial performance, investment activities and use of public resources remain matters of public interest.