PRESIDENT Rodrigo Duterte has abolished the Philippine Sugar Corporation (PHILSUCOR) due to its overlapping functions with other entities.
In Memorandum Order No. 30, the President also authorized the liquidation of assets of PHILSUCOR to settle outstanding liabilities as well as compensation for the affected personnel.
The abolition of PHILSUCOR was made upon the recommendation of the Governance Commission for Government Owned and Controlled Corporations (GCG).
The latest Palace order cited that the GCG wanted to abolish PHILSUCOR since its functions “duplicate or necessarily overlap with the functions, programs, activities or projects of the SRA (Sugar Regulatory Authority) and government financial institutions.”
PHILSUCOR was also “no longer effectively performing the objectives and purposes for which it was originally created,” the order read.
“At present, much of the financing needs of sugar mills are already being provided by private banking and financial institutions in addition to facilities offered by the Development Bank of the Philippines,” it added.
PHILSUCOR, created in November 1983 under Presidential Decree No. 1890, was mandated to provide financing in the acquisition, rehabilitation and expansion of sugar mills, refineries, and other facilities used in the industry.
The SRA, on the other hand, has become the authority to extend financial assistance through socialized credit to sugarcane stakeholders based on Republic Act No. 10659 also known as the Sugarcane Industry Development Act of 2015.
The latest memorandum order also included the compensation package for PHILSUCOR officials and personnel affected by the abolition. They are entitled to separation of benefits in addition to retirement or separation of benefits allowed under existing laws.