MANILA, Philippines — Malacañang ordered the abolition of the North Luzon Railways Corporation (Northrail) on Saturday.
According to Memorandum Order 17 signed by Executive Secretary Lucas Bersamin, Northrail was abolished because it did not produce desired outcomes, achieve the objectives for which it was created, and was not cost-efficient.
In May 2019, the Governance Commission for GOCCs (GCG) ordered the deactivation of Northrail.
The Northrail project was formed to develop a railway connecting Metro Manila to parts of Northern and Central Luzon.
The memorandum also ordered the Bases Conversion and Development Authority (BCDA) to settle Northrail’s liabilities, liquidate its assets, as well as submit documents to the Commission on Audit, among other responsibilities.
Meanwhile, the memorandum also tasked the Department of Transportation, GCG, the Securities and Exchange Commission, and the Office of the Government Corporate Counsel to assist the BCDA in implementing the order.
Affected officials and personnel of Northrail may also avail of their separation pay.
The memorandum will take effect immediately upon its publication in the Official Gazette or a newspaper of general circulation.
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WHAT WENT BEFORE: The Northrail Project