President Rodrigo Duterte on Monday has ordered the abolition of the Philippine Sugar Corp., saying its functions are already obsolete.
In his Memorandum Order No. 30, Duterte abolished the government-owned and controlled corporation on the basis that “it no longer effectively performs its objectives and functions.”
The PHILSUCOR, created under the Presidential Decree No. 1890, is tasked 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.
It also noted that Republic Act No. 10659 authorizes the Sugar Regulatory Administration to give financial assistance through socialized credit to sugarcane stakeholders.
However, considering that 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, the President deemed the government corporation is no longer needed.
“The assets of PHILSUCOR shall be liquidated to settle its outstanding liabilities… Affected officials and personnel may avail themselves of separation and retirement benefits,” the memorandum said.
Duterte said its abolishment will take effect immediately upon publication in the Official Gazette.