Transfer of NLDC Assets and Liabilities
- NLDC was abolished pursuant to Memorandum Order No. 85 (s. 2015).
- All assets and liabilities of NLDC were transferred to the Land Bank of the Philippines (LBP).
Financial Performance of NFC
- NFC consistently incurred annual net losses except in the years 1989, 1995, and 2010.
Grounds for Abolition Recommended by GCG
- GCG recommended NFC’s abolition under Section 5(a) of RA No. 10149 (GOCC Governance Act of 2011).
- Determinations made by GCG include:
- NFC's original functions are no longer aligned with national development policy.
- NFC is not cost efficient and fails to generate adequate social, physical, and economic returns relative to resources invested.
- Activities of NFC are better suited to private-sector undertaking.
Abolition of NFC
- Executive Secretary ordered the formal abolition of NFC.
Liquidation and Settlement of Liabilities
- NFC’s assets shall be liquidated to settle all outstanding liabilities.
- Procedures to follow applicable laws, rules, and regulations.
Creation of a Technical Working Group (TWG)
- TWG composition includes representatives from:
- Governance Commission for GOCCs (GCG)
- Department of Agriculture
- Land Bank of the Philippines
- Department of Budget and Management
- Privatization and Management Office of the Department of Finance
Powers and Functions of the TWG
- Settle NFC liabilities and liquidate its assets.
- Assist with winding up NFC’s corporate affairs.
- Resolve equity investment transfer issues between NLDC and LBP.
- Implement personnel retirement plan, subject to financial capability.
- Submit quarterly reports to the Office of the President on asset disposition and abolition progress.
- Undertake other necessary actions to effectuate the Order.
Separation Pay for Affected Personnel
- TWG authorized to grant separation pay based on length of government service as follows:
- Up to 20 years: 1.00 x Monthly Basic Salary (MBS) x years of service
- Over 20 years up to 30 years: 1.25 x MBS x years of service
- Over 30 years: 1.50 x MBS x years of service
- Funding for separation pay to come from NFC’s corporate funds and other sources identified by the Department of Budget and Management.
- Compliance with budgeting, accounting, and auditing standards required.
Repeal of Inconsistent Orders and Provisions
- All orders, issuances, rules, or regulations inconsistent with this Order are repealed or modified accordingly.
Separability Clause
- Declaration of invalidity or unconstitutionality of any provision does not affect other provisions, which remain valid.
Effectivity of the Order
- The Order takes effect immediately upon publication in the Official Gazette or a newspaper of general circulation.