ANGARA WARNS against selling state assets at bargain sale

Senator Edgardo J. Angara today a said cabinet-level, inter-agency committee should be formed to review the state's privatization policy to make sure the sale of the state's "crown jewels " does not compromise and prejudice the country's strategic and national security interests.

As a companion measure, Angara filed a senate resolution directing the committee on banks, committee on government corporations and public enterprises , committee on finance and committee on public services to inquire on the government's policy on the strategic state assets privatization.

Angara said the top-level review committee should be composed of the National Economic Development Authority , Department of Finance, Department of National Defense and the Department of Budget and Management. NEDA should lead the cabinet-level review committee, he added.

"The sale of state assets to cover up the feckless revenue effort is not worth it. There are other ways of raising money than parting away with the country's prime assets," he said.

Angara said that four strategic state assets - with an expected proceed of close to P30 billion - are up for sale and these are the Food Terminal Property in Tagig, the government shares in Meralco, a real estate property in Japan and the old Iloilo Airport.

" Who are the prospective buyers? What foreign corporations are involved ? These and many other questions should be answered," said Angara.

The purpose of the proposed senate inquiry and the review committee is precisely to answer the "nagging doubts and unanswered questions " about the current privatization efforts, said Angara.

"This strategic industry may have serious implications on national security," Angara said, addng that laws on state assets privatization must be reexamined and stricter policies established.

"While we recognize the benefits of privatization, extra caution should be carried out. Mere presidential approval should not suffice. There should be defined policies," he added.

"Potential buyers are foreign corporations owned or controlled by foreign governments and we are talking about our state's assets, we must not sell or privatize without laying down the rules first."

Angara said that the sale of the strategic assets should not be the answer to easing the budgetary deficit , which is why the government is now on a asset-selling binge.

"There are creative ways to raise revenue collection without imposing new taxes . And without resorting to selling precious state assets. We can expand the revenue base by simply intensifying revenue collection," said Angara.