Subic Bay Freeport – President Ferdinand Marcos Jr. has approved the upgrade of the classification of the Subic Bay Metropolitan Authority (SBMA) along with two other government owned and controlled corporations (GOCCs), pursuant to Executive Order no. 24 series of 2011.
In a Memorandum from Executive Secretary Lucas Bersamin to Finance Secretary Ralph G. Recto, the President has approved the classification upgrade of the SBMA, the Authority of the Freeport Area of Bataan (AFAB) and the Phividec Industrial Authority (Phividec).
According to the said memo that was received by the SBMA on Wednesday, the request for classification upgrade was granted after careful and stringent evaluation based on the provisions contained in Section 6 of EO 24 s.2011 entitled GOCC Classification. The said provision determines the maximum allowable compensation of the members of the Board of Directors/Trustees in GOCCs and government financial institutions.
The same section also provides that, for a GOCC such as the SBMA to be upgraded from C to B, the Agency is required to have assets worth equal or more than P25billion and or less than P100 billion, and revenues equal or more than P2.5 billion and less than P10 billion.
Meanwhile, SBMA Chairman and Administrator Eduardo Jose L. Aliño expressed his gratitude to President Marcos for approving the upgrade of the agency’s classification, and to Finance Secretary Recto for facilitating the request for classification upgrade of the concerned GOCCs.
Chairman Alino also stated that the upgrade will provide better incentives for the Board of Directors as stewards of the SBMA, and as caretakers of the best interests of stakeholders in the Subic Bay Freeport zone.
“Their expertise is very much needed in boosting the development of Subic Bay Freeport, be it infrastructure, revenue collection, operations, or attracting more tourists and investors. I want them to not just be a part of the decision-making body, but also a reliable and dependable source of invaluable ideas and insights,” he said.
The upgrade in classification was cemented by 2023’s collection of operating revenues, amounting to P4.116 billion, the highest recorded in the history of the agency. Aliño said that this is the second year that the SBMA has breached the P4-billion mark in operating revenues, specifically at P4.057 billion.
He added that last year’s P4.116 billion operating revenue is higher than 2022’s operating revenue by P59 million, which is 1.5 percent higher.
The classification of the two other GOCCs, namely AFAB and Phividec, was upgraded from D to C after proving to have satisfied the criteria in Section 6 of EO 24, with assets worth more than or equal to P5 billion and less than P25billion, and revenues of more than or equal to P500 million and less than P2.5 billion.
The memo by ES Bersamin was addressed to Finance Secretary Recto, with copies sent to Chairman Aliño, AFAB Chairman Pablo Gangcayco, and Phividec Chairman Jesus Guevarra II.