Aquino orders abolition of NLDC

MANILA, Philippines – Following the abolition of government-owned and -controlled corporations (GOCCs) linked to the multi-billion peso pork barrel scam, Malacañang on Wednesday, September 9, announced the abolition of yet another implicated corporation.

President Benigno Aquino III signed Memorandum Order 85 on September 2, ordering the abolition of the National Livelihood Development Corporation (NLDC), a government financial institution (GFI) that provides "wholesale lending and technical assistance to microfinance institutions (MFIs) that extend microfinance services to qualified households."

Malacañang based this order on the recommendation of the Governance Commission for GOCCs (GCG), which said that the NLDC has overlapping functions with other GFIs such as the Philippine Postal Savings Bank and the Small Business Corporation.

The GCG said that all 3 agencies "offer similar credit products and capacity building services."

Under MO 85, all assets and liabilities of NLDC shall be transferred to the Land Bank of the Philippines (LBP), while the functions and portfolios shall be absorbed by LBP and SBC.

The LBP will create a special window for the provision of microfinance services.

The NLDC was earlier linked to the Priority Development Assistance Fund (PDAF) controversy uncovered by the Commission on Audit (COA). The special COA audit report in 2013 revealed that the NLDC is one of the two GOCCs that got the most releases in pork barrel between 2007 and 2009.

Eight  former NLDC officials and employees were named co-accused in plunder and graft cases filed before the anti-graft court Sandiganbayan against the 3 senators implicated in the pork barrel scam.

In 2014, Aquino approved the abolition the 3 non-performing GOCCs, all of which were also linked to the pork barrel scandal:

An evaluation of the GCG showed that "the 3 GOCCs were no longer performing the purpose for which they were created, had negligible social impact, and were not financially viable." – Rappler.com