Government issues new guidelines on asset disposition

The Department of Finance (DOF) has introduced updated guidelines for the disposal of government assets, aiming to maximize non-tax revenues and streamline privatization efforts.

In a statement on Thursday, the DOF said the move aligns with Executive Order No. 323, which established the Inter-agency Privatization Council (PrC) and the Privatization and Management Office (PMO). 

The PrC oversees national privatization efforts, while the PMO handles the disposition of assets from government financial institutions and certain government-owned or controlled corporations (GOCCs).

To enhance efficiency, the PrC revised its guidelines, which took effect on March 11. These changes now allow the private sector to submit unsolicited offers, introduce alternative modes of disposition, and use accredited brokers in transactions. 

Additionally, the guidelines mandate the creation of a digital asset registry to improve transparency and accessibility.

The updated policy also opens opportunities for ordinary Filipinos to acquire and invest in government assets.

“Privatization of non-performing assets is among the strategic moves to raise much-needed revenues to fund the growing needs of our people. And by opening the doors for ordinary Filipinos to take part, we are also creating investment opportunities for them while contributing to nation-building,” Finance Secretary Ralph Recto said.

DOF Undersecretary for Privatization and Partnerships Group (PPG) Catherine Fong emphasized that these idle assets do not contribute to economic growth or generate government income. Instead, they require funding for maintenance.

“We allocate budgetary support for the Privatization Management Office [PMO] for upkeep and pre-disposition activities, and instead of raising revenue and helping stimulate the economy, these assets are a burden,” Fong said.

To ensure transparency, information on asset sales will be published in newspapers of general circulation and government websites. 

The PrC unanimously approves the terms and conditions of each sale, with minimum base prices set based on third-party valuations or appraisals.

The new guidelines also lay out a clear purchase process, covering steps from appraisal to contract signing.

“We sincerely hope to receive offers from ordinary citizens wishing to own their own land while helping the national government create better value by speedily disposing of these assets,” Fong added.