PRESIDENT Rodrigo Duterte has ordered the termination of operation of Quedan and Rural Credit Guarantee Corporation (Quedancor), a government-owned and control corporation (GOCC), citing losses for the last five years.
Malacañang released Thursday Memorandum 13 inked by Executive Secretary Salvador Medialdea on June 28 on Duterte's behalf, ordering the immediate abolition of Quedancor.
"Quedancor is now legally prohibited from continuing its guarantee function under its charter, having exceeded the allowable outstanding guarantee obligation provided therein," the memorandum said.
"Quedancor has been operating at a loss for the last five years," it added.
The memorandum provided that Duterte's instruction to cease Quedancor's operation was upon the recommendation of the Governance Commission for GOCCs (CGC).
Pursuant to GOCC Governance Act of 2011, the CGC cited that Quedancor should be abolished on the grounds that it “is dormant or nonoperational; performs functions that duplicate or unnecessarily overlap with the functions of other government projects; and is not producing the desired outcomes.”
Under the memorandum, the assets of Quedancor should be liquidated to settle the outstanding liabilities of the corporation.
Affected officials and personnel of Quedancor, whether regular or contractual personnel, would be given separation benefits that will be sourced from its corporate funds.
The budget department was tasked to ensure that there are sufficient funds to cover the compensation for affected officials and personnel. (VoxPop Philippines)
