GCG orders closure of PNOC renewable energy unit
THE Governance Commission for Government-Owned or -Controlled Corporations (GCG) has approved the deactivation of the renewable energy arm of state-run Philippine National Oil Co. (PNOC) after determining that it was not meeting its intended objectives.
In a memorandum order dated Feb. 18, the commission resolved to formally dissolve PNOC Renewables Corp. (PNOC RC) after determining that “it is not producing desired outcomes.”
GCG said PNOC RC is “no longer achieving the objectives and purposes for which it was originally designed and organized.”
The commission also flagged the unit for not being cost-efficient and for failing to generate sufficient social, physical, or economic returns relative to the resources invested in it.
“The PNOC RC’s functions or purposes duplicate or unnecessarily overlap with functions, programs, activities or projects already provided by other government agencies,” the commission said.
GCG added that PNOC RC’s activities could be better carried out by the private sector.
The Department of Energy (DoE), the supervising agency of the unit, has formally endorsed its deactivation.
PNOC RC is a wholly owned subsidiary of PNOC that was created to promote and undertake research, development, utilization, and distribution of new renewable energy sources.
PNOC, for its part, was created to develop, explore, and manage the country’s oil and energy resources.
GCG directed the PNOC board of directors to take all necessary steps to protect government interests in connection with the deactivation, including the preservation of the unit’s assets.
PNOC RC was also instructed to coordinate with its parent company to explore the possible re-employment of affected personnel. — Sheldeen Joy Talavera
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