MANILA - President Aquino has approved the abolition of three government-owned and -controlled corporations (GOCCs) linked to the alleged P10 billion pork barrel scandal.
The three GOCCs are the Philippine Forest Corporation (PFC), ZNAC Rubber Estate (ZREC) and the National Agri-Business Corporation (NABCOR).
In a statement, Deputy Presidential Spokesperson Abigail Valte said the decision to abolish the three GOCCs was based on a study conducted by the Governance Commission for GOCCs (GCG) on the financial viability and relevance to national development plans of an agency.
Valte said a technical working group has been created to wind down the agencies' operations, transfer funds and functions to other agencies and the separation pay of employees.
She added that separation packages will be withheld for those found to have committed graft or other corrupt practices.
"From the start of his administration, President Aquino has pursued a policy of promoting efficiency in government corporations, to ensure that they serve as a means for fostering national development and not as a conduit or facilitator of selfish agendas and crimes. More GOCCs may be abolished as the GCG fulfills its mandate to rationalize the GOCCs of the country," Valte said.
Agriculture Secretary Proceso Alcala earlier confirmed that the President had asked for a study to abolish five state entities that had received Priority Development Assistance Fund allocations from lawmakers.
The Commission on Audit earlier revealed Senators Juan Ponce Enrile, Jinggoy Estrada and Ramon Revilla Jr., and former Buhay Rep. Rene Velarde funneled at least P201 million in pork barrel funds to ZREC. The agency then released P194.97 million of the funds to a bogus NGO, Pangkabuhayan Foundation Inc. (PFI).