President Rodrigo Duterte has abolished the Philippine Sugar Corp. as part of his effort to streamline the bureaucracy.
The abolition of the state-run firm is contained in Memorandum Order No. 30, which was issued last October 25.
Duterte said the Governance Commission for Government-Owned and Controlled corporations has recommended the abolition of PHILSUCOR because its functions and purpose duplicate or overlap with those of the projects of the Sugar Regulatory Administration and state-run financial institutions.
PHILSUCOR was formed in 1983 through Presidential Decree No. 1890, primarily to provide financing in the acquisition, rehabilitation and 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.
Duterte noted that much of the financing needs of sugar mills are already being provided by the Development Bank of the Philippines, the Land Bank of the Philippines and private banking and financing institutions.
The assets of PHILSUCOR will be liquidated to settle its outstanding liabilities. Government workers who will be affected by the abolition will be entitled to retirement or separation benefits.
Duterte also formed a technical working group that would assist the GCG in implementing the abolition.
The group will consist of representatives from the agriculture, finance and budget departments, the SRA and the Privatization and Management Office. (A. Romero, PS)