Duterte abolishes Philippine Sugar Corporation

Pia Ranada
Duterte abolishes Philippine Sugar Corporation
Philsucor is no longer effectively performing its functions, says Malacañang in Memorandum Order Number 30 abolishing the government corporation

MANILA, Philippines – President Rodrigo Duterte has abolished the Philippine Sugar Corporation (Philsucor) for supposedly not effectively fulfilling its role and to eliminate redundancy, saying some of its functions are already being fulfilled by other government entities.

Memorandum Order Number 30, ordering the abolition, was signed by Executive Secretary Salvador Medialdea by authority of the President on October 25. It was made available to media on Monday, October 29.

Philsucor was created through a Presidential Decree in 1983 to finance the establishment, expansion, and acquisition of sugar mills, refineries, and other similar facilities in order to boost the country’s sugar industry.

But according to the memorandum order, the Governance Commission for GOCCs (Government-Owned and Controlled Coporations) recommended Philsucor’s abolition on two grounds.

  • Its functions and and purpose “duplicate or unnecessarily overlap with the functions, programs, activities, or projects of the SRA (Sugar Regulatory Authority) and government financial institutions.”
  • It is “no longer effectively performing the objectives and purposes for which it was originally intended.”

The document adds that private financial institutions, aside from public ones, are already providing the financial needs of sugar mills. 

Not stated in the order is the Commission on Audit’s finding that Philsucor was among the GOCCs that shortchanged the government through non-declaration, failure to record, failure to remit, or under-remittance of dividends from 2004 to 2014.

The audit agency stated that Philsucor remitted to the treasury less than the P441.256 million that they should have remitted. 

The Palace order provides for separation benefits for Philsucor officials and personnel. – Rappler.com

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Pia Ranada

Pia Ranada is a senior reporter for Rappler covering Philippine politics and environmental issues. For tips and story suggestions, email her at pia.ranada@rappler.com.