MANILA-- President Rodrigo Duterte has ordered the abolition of the state-owned Quedan and Rural Credit Guarantee Corporation (Quedancor), which has been operating at a loss for the last five years.
MalacaAang issued on Thursday Memorandum Order No. 13 signed by Executive Secretary Salvador Medialdea directing the abolition of Quedancor.
Quedancor, a government-owned and controlled corporation (GOCCs), grants loans for farmers and fisherfolk through its various guarantee and credit programs.
"Quedancor is now legally prohibited from continuing its guarantee function under its charter, having exceeded the allowable outstanding guarantee obligation provided therein," the memorandum read.
"Quedancor has been operating at a loss for the last five years," it added.
According to the memorandum, the Governance Commission for GOCCs (CGC) has recommended the abolition of Quedancor for duplicating or overlapping with functions of similar government agencies; not producing the desired outcomes; or no longer achieving its objectives or purposes.
The document also stated that the assets of the state-owned firm will be liquidated "to settle the outstanding liabilities of the corporation".
Source: Philippines News Agency