Malacanang has ordered the dissolution of Northern Foods Corp. (NFC) calling it no longer cost-effective and at odds with the government’s development policy.
Executive Secretary Salvador C. Medialdea, on the President’s authority, signed Memorandum Order No. 58 which would dissolve the NFC, which has incurred net losses since its founding except in 1989, 1995, and 2010.
The NFC was a subsidiary of the National Livelihood Development Corp., which later had its assets and liabilities transferred to the Land Bank of the Philippines (LANDBANK).
Under the order, the NFC’s assets will be liquidated to settle the liabilities of the government-owned and -controlled corporation (GOCC).
A technical working group will be created with representatives from the Departments of Agriculture and Budget and Management, as well as LANDBANK, to settle all liabilities and implement a personnel retirement plan.
Affected employees will be granted separation pay from the proceeds of the disposal, based on a formula that accounts for their length of tenure and monthly basic salary. – Russell Louis C. Ku