Question & AnswerQ&A (MEMORANDUM ORDER NO. 58)
The primary purpose is to order the abolition of the Northern Foods Corporation (NFC) and provide directives on the liquidation of its assets, settlement of liabilities, and other related matters.
The NFC was registered with the SEC on March 16, 1984.
NFC was a subsidiary of the then Livelihood Corporation, which was later renamed as the National Livelihood Development Corporation (NLDC).
The NFC was established for the purpose of operating as a tomato paste processing center.
The NLDC was abolished pursuant to Memorandum Order No. 85 (s. 2015), and all its assets and liabilities were transferred to the Land Bank of the Philippines.
The GCG recommended abolition because (a) NFC's functions are no longer consistent with national development policy; (b) NFC was not cost-efficient and did not produce desired outcomes or sufficient social, physical, and economic returns; and (c) its activities are better suited for the private sector.
The assets of the NFC shall be liquidated to settle outstanding liabilities in accordance with relevant laws, rules, and regulations.
The TWG is tasked with settling NFC liabilities, liquidating assets, assisting in corporate winding-up, resolving equity transfer issues, implementing personnel retirement plans, submitting quarterly reports, and performing other necessary actions to implement the order.
The TWG includes representatives from the Governance Commission for GOCCs, Department of Agriculture, Land Bank of the Philippines, Department of Budget and Management, and the Privatization and Management Office of the Department of Finance.
Separation pay rates are as follows: for the first 20 years of service, 1.00 times the monthly basic salary (MBS) per year; for 20 years and 1 day to 30 years, 1.25 times MBS per year; and for over 30 years, 1.50 times MBS per year.
Separation pay will be charged against available corporate funds of the NFC and other funding sources identified by the Department of Budget and Management, subject to budgeting, accounting, and auditing laws, rules, and regulations.
They are repealed or modified accordingly to align with the provisions of this order.
The Separability Clause (Section 7) provides that invalidity of any provision shall not affect the validity of the other provisions.
It takes effect immediately upon publication in the Official Gazette or in a newspaper of general circulation.