MANILA - President Rodrigo Duterte has ordered the abolition of Philippine Sugar Corporation (Philsucor), saying its function is no longer needed.

Duterte, in his Memorandum Order No. 30 signed Oct. 25, said Philsucor is no longer needed as 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 Land Bank of the Philippines.

Philsucor, a government-owned and controlled corporation, was created on Nov. 14, 1983 primarily to provide financing in the acquisition, rehabilitation, and expansion of sugar mills, refineries, and other related facilities used in the manufacture, packing, storage, distribution, and shipment of sugar and its by-products and derivatives.

The memorandum also noted that the GOCC Governance Act of 2011 also recommended the abolition of Philsucor because of its overlapping functions with the Sugar Regulatory Administration.

The memorandum states that Philsucor’s assets shall be liquidated to settle its outstanding liabilities. Affected officials and personnel may avail themselves of separation and retirement benefits.