Public enterprises (PEs) in the Philippines suffer governance-related problems that make their reform difficult. PEs have oftentimes conflicting objectives, are subject to political interference, and lack transparency, accountability and productivity. During the Martial Law period, they were used as milking cows of the Marcoses and their cronies, and contributed to the heavy fiscal and budgetary burden of the national government. In reforming the PEs, several policies have been applied, which include financial discipline, salary reforms, performance evaluation and audit, privatization, and rationalization. However, there is still a need to intensify reform initiatives and make the public corporate sector more viable, sustainable, and competitive through corporate governance. Corporate governance is about managing an enterprise while ensuring accountability in the exercise of power and patronage, and by creating a balance between economic and social goals while encouraging efficient use of resources, accountability in the use of power, and stewardship.
