MANILA, Philippines — A shipbuilding and ship repair corporation sequestered by the government reportedly increased its net income by as much as 750 percent since the current Presidential Commission on Good Government (PCGG) assumed control of the firm.

The Bataan Shipyard and Engineering Company, Inc. (Baseco) reported a substantial net income of P17 million as of the end of 2011, which PCGG officials claimed was a substantial increase from the net income of P2 million the firm earned in 2010.

In the company’s 2011 year-end report, PCGG Commissioner for Litigation Gerard Mosquera, concurrently Baseco’s acting chairman of the board, said the 2011 net income represents a 750 percent increase compared to the net income in 2010 generated from leasing operations of Engineering Island in Port Area, Manila, and a 300-hectare property co-owned with the provincial government of Bataan.

Mosquera said that since the new PCGG, under Chairman Andres Bautista, assumed control of BASECO in June 2011, the new management team instituted reform measures to preserve the assets of the corporation, increase revenue and reduce costs.

“Among the measures implemented were reduction of excessive directors’ fees and employees’ compensation, suspension of onerous contracts, investigation of questionable transactions and institution of internal control measures,” he said.

The official said the revenue-enhancing and cost-cutting measures implemented in Baseco resulted in a reduction of administrative and operational expenses by 18 percent from P40.89 million to 33.70 million, while gross revenues increased by 16 percent from P43 million to P50 million.

“Directors’ fees, in particular, were reduced to 10 percent of previous levels in full compliance with executive issuances limiting director’s compensation,” he said.