Duterte abolishes Quedancor

President Rodrigo Duterte. PRESIDENTIAL PHOTO

After operating at a loss for the last five years, President Rodrigo Duterte has ordered the abolition of the government-owned and controlled corporation (GOCC) Quedan and Rural Credit Guarantee Corporation (Quedancor).

Executive Secretary Salvador Medialdea, by the authority of the President, released Tuesday Memorandum Order No. 13, which directed the abolition of Quedancor.

“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.

The memorandum stated that Quedancor should be abolished for “dormant or nonoperational” and for performing functions overlapping with other government agencies.

Established  in 1978, Quedancor was “mandated to establish a sustainable guarantee system towards improving access to credit in the agriculture sector and accelerating productivity and the flow of investments and credit resource.”

It said affected officials and personnel of the said GOCC would be provided with separation benefits, the computation of which would be based on their years of service.