President Benigno Aquino III has ordered the abolition of the Philippine Veterans Assistance Commission and the Philippine Veterans Investment Development Corp. because of the irreversible losses incurred by the two agencies, making themselves “no longer financially viable.”
In Memorandum Order No. 87, Aquino said the abolition of the two agencies shall be undertaken by the Governance Commission for Government-Owned or -Controlled Corporations, which is the central advisory, monitoring, and oversight body authorized to formulate, implement, and coordinate policies for government-owned and -controlled corporations.
The abolition will be done in coordination with the Department of National Defense, Aquino said.
PVAC will be be absorbed by the Philippine Veterans Affairs Office while the commercial functions of Phividec and PVAC shall be assumed by the Phividec Industrial Authority.
DND/PVAO and the Privatization and Management Office will dispose of Phividec assets.
Aquino said provisions for the immediate and adequate care, benefits and assistance to veterans and retirees, in line with national development plans, may be efficiently carried out by fewer agencies maximizing their capabilities and assets.
The commercial functions and provision of services to veterans by PVAC and Phividec have since been performed by the PIA and PVAO.
On the other hand, Sec. 5(a) of Republic Act (RA) No. 10149, otherwise known as the GOCC Governance Act of 2011, empowers the GCG, in consultation with the department or agency to which a GOCC is attached, to determine whether a GOCC should be reorganized, merged, streamlined, abolished, or privatized.
The GCG, in line with Sections 6(d) and 8(e) of E.O. No. 43 (s.2011) and the Philippine Development Plan 2011-2016, finds the abolition of PVAC and Phividec to be in the best interest of the State in order to improve national productivity and reduce ineffective and inefficient spending of public funds, said Aquino in his M.O. No. 87.