Malacanang has ordered the abolition of the Armed Forces of
the Philippines-Retirement and Separation System (AFP-RSBS) in an effort to
curb inefficient public spending.
Memorandum Order No. 90 signed by Executive Secretary
Paquito Ochoa Jr. said the interest liability of AFP-RSBS continues to grow and
the Government-Owned and/or Controlled Corporation (GOCC) now faces a depletion
of its retained earnings by the end of November 2016.
The memorandum noted that the pension and benefits of
retired AFP personnel continue to be funded through the General Appropriations
Act (GAA).
“The GCG (Governance Commission for GOCCs) finds the
abolition of AFP-RSBS to be the best interest of the State in order to improve
national productivity and reduce ineffective and inefficient spending of public
funds,” it said.
Pursuant to the liquidation of AFP-RSBS’s assets, the
memorandum approved the privatization of its wholly-owned subsidiaries, namely
Monterossa Development Corp. (MDC) and Southern Utility Management and Services
Inc. (SUMSI).
The AFP-RSBS Board, which shall act as the Board of
Liquidators subject to oversight by the Governance Commission, is directed to
cease collecting members’ contributions and accrual interest, and collect all
indebtedness due to the AFP-RSBS.
The Board shall continue corporate operating budget for the
continuation of leasing services, refund of AFP-RSBS members’ contributions as
they fall due, and servicing of existing membership loan programs.
It shall also enter contracts for the sale of all its real
estate assets, golf and country club shares and all other personal properties.
Affected officials and personnel of AFP-RSBS may avail the
separation benefits in addition to retirement or separation benefits allowed
under existing laws.
To implement abolition, the GCG shall be assisted by a
Technical Working Group composed of representatives from the Departments of
National Defense, Finance and Budget and Management; Privatization Management
Office, AFP-RSBS and AFP.
http://www.pna.gov.ph/index.php?idn=&sid=&nid=&rid=876166
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.