QuestionsQuestions (Acts No. 1834)
The MO cites PD No. 361 (s. 1973) as the law that created AFP-RSBS, and RA No. 10149 (GOCC Governance Act of 2011), specifically Section 5(a), empowering the GCG to reorganize, merge, streamline, abolish, or privatize GOCCs upon recommendation and presidential approval.
Monterossa Development Corp. (MDC) and Southern Utility Management and Services, Inc. (SUMSI). Their privatization is approved pursuant to the liquidation of AFP-RSBS assets, including its shares in these subsidiaries.
It directs the AFP-RSBS Board to act as a Board of Liquidators, with oversight by the Governance Commission, to carry out winding down and liquidation actions.
Yes. It orders the Board of Liquidators to cease collecting members’ contributions and accrual of interest thereon upon the effectivity of the Order.
The Board must maintain only the number of personnel necessary to wind down its corporate affairs and must cease hiring new personnel unless first approved by the Governance Commission.
The Board must collect all indebtedness due to AFP-RSBS and release penalties to loans and inter-company receivables due to AFP-RSBS, subject to conditions: not manifestly prejudicial to the government and compliant with existing auditing rules and regulations.
It requires a continuing corporate operating budget for refund of members’ contributions as they fall due and servicing of existing Membership Loan Programs.
The Order authorizes the continuation of a corporate operating budget for winding-down purposes such as asset preservation, debt collection, release of certain penalties, refunds to members, and servicing loan programs.
The GCG is assisted by representatives from DND, DOF, DBM, PMO, AFP-RSBS, and AFP. The implied role is inter-agency coordination to implement the Order’s provisions.
It may enter contracts to sell all real estate assets (subdivision lots, house and lots, memorial lots, raw lands, and acquired assets per internal policies), sell golf and country club shares and other personal properties, and manage/preserve maintain buildings and facilities as part of winding down.
The Board must complete deliverables to subdivisions and turn over completed subdivisions to LGUs and homeowners association.
It empowers the liquidators to pursue legal and administrative steps necessary to regularize and perfect title/ownership of AFP-RSBS real estate, including land use conversion, CARP exemption, reconveyance, segregation, and transfer of certificates of title (TCTs).
It directs the Board to continue, abrogate, and/or re-negotiate existing JV agreements/contracts, subject to the revised NEDA JV Guidelines.
It maintains full power to sue and file complaints to protect AFP-RSBS rights and interests and to engage lawyers, accountants, and other professionals as necessary to protect interests, wind down corporate affairs, and manage/dispose remaining assets.
They may avail of separation benefits in addition to retirement/separation benefits under existing laws, computed using a multiplier of Basic Monthly Pay (BMP) times number of years in service: 1.00x for first 20 years, 1.25x for 20 years and 1 day to 30 years, and 1.50x for 30 years and 1 day and above.
From AFP-RSBS corporate funds.
It states the Order shall take effect immediately, implying no need for a transition period before its operative provisions begin (subject to execution through implementing guidelines).
It includes a separability clause (invalid provisions do not affect the others) and a repeal/modification clause (inconsistent orders/rules/issuances are repealed or modified accordingly).