COA: GOCCs incur P691-B losses in 2021
Government-owned and controlled corporations (GOCCs) incurred more than P691.7 billion losses in 2021, the Commission on Audit (COA) said in its Annual Financial Report (AFR) submitted to President Ferdinand “Bongbong” Marcos Jr.
The 2021 AFR covered 156 GOCCs. Among the big losers are the Social Security System (SSS), Bangko Sentral ng Pilipinas (BSP), Manila International Airport Authority (MIAA), Civil Aviation Authority of the Philippines (CAAP), Duty Free Philippines Corporation (DFPC), North Luzon Railways Corporation, Mactan-Cebu International Airport, Overseas Filipino Bank, Inc., Cagayan Economic Zone Authority, and the Human Settlements Development Corporation.
The COA said that the total income of the Commercial Public Sector Entities (CPSEs) was P1.49 trillion, but its expenses amounted to P1.97 trillion.
“These resulted in a loss before tax of P482.15 billion compared to the previous year’s loss before tax of P182.58 billion,” the report said.
Water districts (WD) share P28.14 billion or 1.89 percent of CPSEs’ total income and P25.37 billion or 1.29 percent of the CPSEs’ total expenses, it said.
“After considering the income tax expense of P9.30 billion and the net assistance/subsidy/contribution of negative P20.73 billion, the loss increased to P512.18 billion. With the addition of P468.69 billion for the changes in insurance reserve, the loss decreased to P43.49 billion,” the COA said.
“The other comprehensive loss amount of P648.27 billion, resulted in comprehensive loss for the year to P691.76 billion, out of which the WDs shares comprehensive income amount to P2.78 billion or 0.40 percent,” it added.
The bulk of the losses or about 96 percent was incurred by the SSS. While the SSS recorded the highest revenue collection, the COA said that it also incurred the most operational expenses and benefit pay-outs that resulted in losses.
COA recommended that SSS should exert efforts to collect about ₱305 billion in member-contributions that remained unremitted by delinquent employers.
It said that SSS’s failure to collect from delinquent employers has deprived the agency of the cash flow to settle benefit claims by members.
“SSS shared P1.098 trillion or 72.36 percent of the total maintenance and other operating expenses, Government Service Insurance System (GSIS) followed with P147.87 billion or 9.74 percent, and Philippine Health Insurance Corporation (PHIC) with P141.56 billion or 9.33 percent,” the audit report said.
As for members’ benefits pay-out, the COA reported: “SSS with P223.98 billion, GSIS with P143.01 billion, and PHIC with P140.16 billion shared 99.96 percent or P507.15 billion of Members’ Benefits.”
The COA identified the top three government corporations (GCs) with the highest amount of total assets as the BSP with P7.575 trillion, Land Bank of the Philippines (LBP) with P2.594 trillion, and the GSIS with P1.540 trillion.
On the other hand, COA said the top three GCs with the highest total liabilities are the SSS with P7.639 trillion, BSP with P7.440 trillion, and LBP with P2.374 trillion.
The COA prepares the AFR in compliance with its mandate under the 1987 Philippine Constitution and Presidential Decree No. 1445, the Government Auditing Code of the Philippines.
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