Duterte orders abolition of Philippine Sugar Corporation

President Rodrigo Duterte has directed the abolition of the Philippine Sugar Corporation (Philsucor), according to a document released by Malacañang on Monday.

Signed by Executive Secretary Salvador Medialdea on October 25, Memorandum Order 30 said the Governance Commission for GOCCs (Government-Owned and Controlled Corporations) recommended the abolition on the grounds that Philsucor's functions "duplicate or unnecessarily overlap" with those of the Sugar Regulatory Administration and government financial institutions.

The order also stated that Philsucor is "no longer effectively performing the objectives and purposes for which it was originally created." 

Established in November 1983 under Presidential Decree 1890, Philsucor is mandated to provide financing in the acquisition, rehabilitation, and/or expansion of sugar mills, refineries, and other related facilities used in the manufacture, storage, distribution and shipment of sugar and its by-products and derivatives.

"[A]t present, 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 the Land Bank of the Philippines," the order read.

The Palace said Philsucor assets shall be liquidated to settle its liabilities. Affected officials and employees may avail of separation benefits on top of the retirement or separation packages allowed under existing laws.

Duterte's order to abolish Philsucor shall be effective upon publication in the Official Gazette or in a newspaper of general circulation. —KBK, GMA News