STATE auditors flagged the Philippine Sugar Corp. (PHILSUCOR) for failing to make progress on its abolition after a directive from the Office of the President four years ago, racking up expenses worth P29.3 million.
“The complete liquidation of the affairs of the PHILSUCOR and the closing of books of accounts have not been carried out yet, despite the lapse of four years from the approval by the Office of the President,” the Commission on Audit (CoA) said in its 2022 report dated April 25, 2023.
PHILSUCOR was created under Presidential Decree No. 1890 in 1983 to finance the acquisition, rehabilitation, and/or expansion of sugar mills, refineries, and other related facilities.
It was ordered for abolition on Oct. 25, 2018 because its functions overlap with the Sugar Regulatory Administration (SRA).
Memorandum Order No. 30 of the Office of the President also said that “much of the financing needs of sugar mills are already being provided by private banking and financing institutions in addition to the lending facilities offered by the Development Bank of the Philippines and the Land Bank (LANDBANK) of the Philippines.”
CoA said the delay of the dissolution was because the technical working group (TWG) created under the memorandum order has not approved the fourth proposed plan of liquidation.
State auditors reiterated last year’s recommendations of coordinating closely with the Governance Commission for Government-owned and Controlled Corporations, and to submit an updated plan.
The TWG is composed of representatives from the Agriculture, Finance, and Budget departments, the SRA, and the Privatization and Management Office.
PHILSUCOR had assets worth P456.64 million in 2022, and unsettled audit disallowances amounting to P1.5 million. — Beatriz Marie D. Cruz