Question & AnswerQ&A (MEMORANDUM ORDER NO. 87)
The main purpose is to direct the abolition of the Philippine Veterans Assistance Commission (PVAC) and the Philippine Veterans Investment Development Corporation (PHIVIDEC) and address the transfer of their functions and disposition of their assets.
The Philippine Veterans Assistance Office-Proper (PVAO) will absorb the functions of PVAC that provide services to veterans.
The PHIVIDEC Industrial Authority (PIA) will assume the commercial functions.
The Department of National Defense (DND)/PVAO and the Privatization and Management Office (PMO) are tasked with the disposition of PHIVIDEC assets.
The Department of Finance (DOF) will pay the outstanding financial obligations of PVAC and PHIVIDEC out of the proceeds from the disposition of their assets.
The Technical Working Group assists the Governance Commission for GOCCs (GCG) in implementing the abolition order, ensuring coordination among the DND/PVAO, PIA, DOF/Bureau of Treasury, and PMO.
The GCG acts under Section 5(a) of Republic Act No. 10149 (GOCC Governance Act of 2011), which empowers it to determine whether a GOCC should be abolished.
The order cites unabated and irreversible financial losses making the entities nonviable, and the need to improve efficiency and reduce spending by consolidating veterans’ services under fewer agencies.
The other provisions not affected by such declaration shall remain valid and subsisting, as per the separability clause.
Executive Order No. 43 (s. 2011) Sections 6(d) and 8(e), and the Philippine Development Plan 2011-2016.