Photo File From THEPHILBIZNEWS
President Rodrigo Duterte
In his desire to remove bureaucracy, President Rodrigo Duterte has abolished the Philippine Sugar Corp. which he deemed to be redundant.
The President in his Memorandum Order No. 30 signed on October 25, stated that “The Philsucor is no longer needed as 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 Land Bank of the Philippines, private banking and financing institutions..”
PHILSUCOR which is a government-owned and controlled corporation (GOCC), was created on Nov. 14, 1983 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 revealed that 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’s assets will be liquidated to settle its outstanding financial obligations. While the government workers who will be affected by the abolition will be entitled to retirement or separation benefits.
A technical working group that would assist the GCG in implementing the abolition was created by the President. The group will compose of representatives from the agriculture, finance and budget departments, the SRA and the Privatization and Management Office.
