SSS open to buying gov’t assets, favors those with solid cash flow

THE Social Security System (SSS) is open to buying government assets, expressing a preference for those presenting cash flow opportunities.

“If it is a government property and I see the potential, I will help the Department of Finance (DoF). I just don’t know (how much we can take),” SSS President and Chief Executive Officer Rolando L. Macasaet told reporters on Monday.

Finance Undersecretary Catherine L. Fong has said the government is aiming to raise around P100 billion from the sale of government assets, mainly to the SSS and the Government Service Insurance System, to finance the budget deficit.

Mr. Macasaet said he does not have a list of the assets to be privatized.

When asked if he was interested in buying the government’s stake in the Subic-Clark-Tarlac Expressway (SCTEx), Mr. Macasaet said he was interested in ventures with guaranteed cash flow.

“I was once a president of a toll road, which is why I understand this. The greatest risk there is the construction risk. But if the expressway is already built, the risk is now minimal because the cash flow is regular. That’s why I’d like the toll road, especially for the pension,” he said.

Finance Secretary Ralph G. Recto has signaled the DoF’s interest in selling the government’s stake in SCTEx, possibly to the two big pension funds.

He said the revenue generated from this sale would be “fairly signifi�����Գ�.”

SSS Fund Management Group Senior Vice-President Ernesto D. Francisco, Jr. said the SSS is “keenly looking into” buying SCTEx shares, which he considers a good fit due to Mr. Macasaet’s experience with toll roads.

“We are very excited about that opportunity,” he said.

Mr. Francisco said the pension fund is studying SCTex, noting that its strong fundamentals.

“Traffic is rising, economic activity is improving in the areas where SCTEx is. So it really is very meritorious,” he said, noting that the SSS is not interested in taking on an operational role. — Aaron Michael C. Sy