Duterte abolishes scam-tainted Quedancor
MANILA, Philippines – President Rodrigo Duterte abolished the Quedan and Rural Credit Guarantee Corporation (Quedancor) through a Palace memorandum order signed on Wednesday, June 28.
The memorandum order, signed by Executive Secretary Salvador Medialdea, said Quedancor is to be abolished since it is no longer operational anyway and has been "operating at a loss for the last 5 years."
Quedancor is a government-owned and -controlled corporation (GOCC) that provides loans to agricultural workers or organizations for agricultural programs, to boost growth in the countryside.
"QUEDANCOR is now legally prohibited from continuing its guarantee function under its charter, having exceeded the allowable outstanding guarantee obligation provided therein," reads the document.
It also stated that Quedancor had overlapping functions with other government agencies.
"The Philippine Export-Import Agency, Small Business Corporation, and the Agricultural Guarantee Fund Pool, which is placed in trust with Land Bank of the Philippines, operate more successful agricultural guarantee programs, activities, and projects," says the MO.
The Governance Commission for GOCCs (Government Owned and Controlled Corporations) had recommended the abolition of Quedancor for "not producing the desired outcomes" and for "no longer achieving [its] objectives and purpose." It also described Quedancor as "not cost efficient."
In recent years, Quedancor officials have also been embroiled in controversy.
In 2014, the Office of the Ombudsman indicted 4 of its executives for approving 4 ineligible private firms as swine and feed suppliers in 7 provinces a decade ago.
These companies were allowed to corner most of the supply contracts for the corruption-mired Quedancor Swine Program (QSP) in Iloilo, Aklan, Capiz, Bataan, Pampanga, Tarlac and Zambales in 2004.
The corruption-mired QSP was a credit program introduced by Quedancor in 2004, which allowed swine raisers to apply for a government loan to be released to them in the form of their needed supplies like hogs, gilts, medicines, and feeds.
Quedancor regional and district offices were responsible for accrediting input suppliers of these items.
Former Agriculture Secretary Luis Ramon “Cito” Lorenzo Jr was also charged but later acquitted in an alleged irregular deal between Quedancor and MLI. In his case, MLI allegedly failed to deliver P47,465,614 ($1.05 million) in supplies to the state firm. – Rappler.com