The Governance Commission for Government-Owned and -Controlled Corporations (GCG) said it has been proactive in its efforts to abolish Northern Foods Corp. (NFC), initiating actions for the liquidation of the non-performing government corporation as early as 2021.
The agency released its statement over the weekend following reports published last week, where the Commission on Audit (COA) said that the GCG has failed to convene the technical working group (TWG) that was supposed to resolve pending issues, including compensation of NFC’s employees who are losing their jobs, liquidation of the government firm’s assets and the settlement of its liabilities.
Alex Quiroz, GCG chairperson, said it is “incorrect” to ascribe inaction on the part GCG.
The GCG said based on records, the TWG members nominating their respective authorized representatives were requested as early as Dec. 9, 2021 but completed only on July 22, 2022.
The TWG is composed of the GCG, the Department of Agriculture, the Land Bank of the Philippines, the Department of Budget and Management and the Privatization Management Office.
Quiroz added while waiting for the TWG members to be completed, GCG approved the Schedule of Separation Plan of NFC on June 23, 2022 which resulted in approximately P1.3 million savings per month on salaries and wages according to NFC.
“Upon the appointment of the new Commission, the GCG immediately endeavored to convene the TWG to discuss pressing matters relative to the abolition of NFC. Hence, on Oct. 8, 2022, the TWG convened and conducted its first meeting at the GCG office attended by the majority of all members of the TWG,” Quiroz said.
“On Oct. 26, 2022, the GCG and the TWG members received the updated Plan of Liquidation as requested from NFC during the first TWG meeting. The second meeting was conducted on Dec. 21, 2022,” he added.
The GCG said the next TWG meeting will be scheduled once the Governing Board of NFC attains majority members to constitute a quorum as the Governing Board of an abolished GOCC continues to possess powers to effect the liquidation of the GOCC in accordance with the terms of the abolition and procedure laid down by the TWG.
