MANILA - Malacanang has issued a memorandum order directing the abolition of the First Cavite Industrial Estate, Inc. (FCIEI), a 154.5-hectare industrial subdivision in Dasmarinas, Cavite.
The FCIEI was built to service all basic needs of any manufacturing concern of the light-to-medium scale industry.
Executive Secretary Salvador Medialdea signed memorandum order No. 62 on Wednesday and was released to reporters on Thursday.
Under the order, Medialdea said the Governance Commission for Government-Owned and -Controlled Corporations (GCG) recommended the abolition of the FCIEI because "its original purpose is no longer relevant to the State."
It also cited how the FCIEI "is no longer achieving the objectives and purposes for which it was originally designed and implemented", "is not cost efficient", and "is dormant and non-operational."
The GCG also cited how the FCIEI "is involved in an activity best carried out by the private sector."
Medialdea noted how the FCIEI was registered with the Securities and Exchange Commission (SEC) on Dec. 14, 1990, and started as a joint venture project of the National Development Company (NDC), and its partners to acquire, own, lease, hold, subdivide, construct, develop, equip, operate, maintain and generally deal in industrial estates.
The FCIEI was primarily formed to develop the NDC's property in Dasmarinas, Cavite into an industrial estate and economic zone, and have sold all saleable lots within such estate to locators in 1995.
In 1999, the other joint venture partners sold their shares in FCIEI to NDC, making the latter the parent company of the FCIEI.
After completion of the development of the NDC's property, which served as the FCIEI's sole industrial estate project, the Board of Directors of the NDC deferred the dissolution of the FCIEI considering that it may be used to develop another property of the NDC.
"Given that the intention for the FCIEI to undertake another development project did not materialize, the abolition of the company was recommended, and was approved in principle in 2015, with the condition that the FCIEI's liabilities, particularly to the Philippine Economic Zone (PEZA), are settled," the order read.
In the order, Medialdea mandated the liquidation of FCIEI assets "to settle the outstanding liabilities of the corporation, in accordance with applicable laws, rules, and regulations. "
The remaining assets and/or liabilities of the FCIEI will be assumed by its parent company, the NDC.
The order also mandates the creation of a technical working group (TWG) to settle the liabilities of the FCIEI, undertake steps necessary in the liquidation of its assets, and assist in the winding-up of its corporate affairs.
The TWG will also oversee the transfer of the remaining government functions of the FCIEI to concerned agencies. (PNA)