Duterte orders abolition of Philippine Sugar Corp
President Rodrigo Duterte has ordered the abolition of the Philippine Sugar Corporation (Philsucor) as its function has been overlapping with the Sugar Regulatory Administration (SRA).
The abolition of Philsucor, a government-owned and controlled corporation, has been recommended by the Governance Commission for GOCCs, or Government Controlled or Owned Corporations (GCG).
According to Memorandum Order No. 30, which Executive Secretary Salvador C. Medialdea by authority of the President signed on October 25, the GCG has recommended the abolition of Philsucor on two grounds.
These are the following: Its functions or purposes duplicate or unnecessarily overlap with the functions, programs, activities or projects of the SRA and government financial institutions; and it is no longer effectively performing the objectives and purposes for which it was originally created.
Philsucor was created in November 1983 under Presidential Decree No. 1890, primarily to provide financing in the acquisition, rehabilitation, and/or expansion of sugar mills, refineries, and other related facilities used in the manufacture, packing, storage, distribution, and shipment of sugar and its by-products and derivatives.
Republic Act No. 10659, also known as the Sugarcane Industry Development Act of 2015, gives the SRA the authority to extend financial assistance through socialized credit to surgarcane stakeholders.
The MO also said that currently, much of the financing needs of sugar mills are already being provided by private banking and financing institutions in addition to the lending facilities offered by the Development Bank of the Philippines and the Land Bank of the Philippines.
With the abolition of Philsucor, its asset shall be liquidated to settle its outstanding liabilities.
As for its officials and personnel, whether regular or contractual personnel, they may avail of the separation benefits depending on the number of years that they have worked for the agency in addition to retirement or separation benefits allowed under existing laws.
Funding for the separation pay and other benefits of affected officials and personnel of Philsucor will be sourced from the corporate funds of the agency.
A technical working group will be created to assist the GCG to implement the Order.
The Order shall take effect immediately upon publication in the Official Gazette or in a newspaper of general circulation. Celerina Monte/DMS