<<<PRESS RELEASES

PRESIDENT AQUINO APPROVES ABOLITION OF PDAF-LINKED GOCCS

POSTED LAST 30 Jan 2014 - 11:12 am

President Benigno S. Aquino approved last month the abolition of three non-performing GOCCs following the recommendation of the Governance Commission for GOCCs (GCG), which is mandated to regulate the country’s GOCCs.

The three GOCCs are Philippine Forest Corporation (PFC), ZNAC Rubber Estate (ZREC), and the National Agri-Business Corporation (NABCOR). The recommendation for their abolition was made in the third quarter of last year following the GCG’s regular sector-wide evaluation of GOCCs based on financial viability and relevance to current national development plans.

PFC and ZREC were some of the GOCCs cited in recent media reports as being conduits of spurious PDAF allocations linked to the Janet Lim-Napoles pork-barrel scam. On the other hand, NABCOR was found to be a non-performing GOCC that has been operating at a loss.

The GCG’s regular evaluation of GOCCs also showed that the three GOCCs were no longer performing the purpose for which they were created, had negligible social impact and were not financially viable.

The presidential clearance will mean the creation of a Technical Working Group (TWG) to pave the way for the: winding down of operations, disposition of assets, liabilities, closing of book accounts, and the transfer of assets and functions. Affected employees are given separation pay pursuant to civil service rules and regulations, unless they are found to have participated in graft and/or corrupt acts in which case the separation package may be withheld pending the investigation and/or prosecution. The Commission turns over any findings of this nature to the Ombudsman pursuant to the Memorandum of Agreement executed by the two agencies.

Currently, the GCG is studying the abolition of more GOCCs as part of its broad mandate, which includes merging, reorganizing, streamlining, and privatizing GOCCs.

President Benigno S. Aquino approved last month the abolition of three non-performing GOCCs following the recommendation of the Governance Commission for GOCCs (GCG), which is mandated to regulate the country’s GOCCs.

The three GOCCs are Philippine Forest Corporation (PFC), ZNAC Rubber Estate (ZREC), and the National Agri-Business Corporation (NABCOR). The recommendation for their abolition was made in the third quarter of last year following the GCG’s regular sector-wide evaluation of GOCCs based on financial viability and relevance to current national development plans.

PFC and ZREC were some of the GOCCs cited in recent media reports as being conduits of spurious PDAF allocations linked to the Janet Lim-Napoles pork-barrel scam. On the other hand, NABCOR was found to be a non-performing GOCC that has been operating at a loss.

The GCG’s regular evaluation of GOCCs also showed that the three GOCCs were no longer performing the purpose for which they were created, had negligible social impact and were not financially viable.

The presidential clearance will mean the creation of a Technical Working Group (TWG) to pave the way for the: winding down of operations, disposition of assets, liabilities, closing of book accounts, and the transfer of assets and functions. Affected employees are given separation pay pursuant to civil service rules and regulations, unless they are found to have participated in graft and/or corrupt acts in which case the separation package may be withheld pending the investigation and/or prosecution. The Commission turns over any findings of this nature to the Ombudsman pursuant to the Memorandum of Agreement executed by the two agencies.

Currently, the GCG is studying the abolition of more GOCCs as part of its broad mandate, which includes merging, reorganizing, streamlining, and privatizing GOCCs.

 

Contact:
Bea Nadine V. Barte 
(02) 328 – 2030 to 34 
bnvbarte@gcg.gov.ph 
www.gcg.gov.ph