Directing the Abolition of the First Cavite Industrial Estate, Inc. and for Other Purposes

June 23, 2022

MEMORANDUM ORDER NO. 62

DIRECTING THE ABOLITION OF THE FIRST CAVITE INDUSTRIAL ESTATE, INC. AND FOR OTHER PURPOSES

WHEREAS, the First Cavite Industrial Estate, Inc. (FCIEI) was registered with the Securities and Exchange Commission on 14 December 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;

WHEREAS, the FCIEI was primarily formed to develop the NDC's property in Dasmariñas, Cavite into an industrial estate and economic zone, and have sold all saleable lots within such estate to locators in 1995;

WHEREAS, in 1999, the other joint venture partners sold their shares in FCIEI to NDC, making the latter the parent company of the FCIEI;

WHEREAS, 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;

WHEREAS, 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 Authority (PEZA), are settled;

WHEREAS, through a Memorandum of Agreement dated 07 March 2016, the FCIEI and PEZA agreed on the partial settlement of the former's liabilities to the latter;

WHEREAS, the respective Board of Directors of the NDC and the FCIEI approved the proposed dissolution of the company, and the Governance Commission for Government-Owned or -Controlled Corporations (GCG) En Banc, pursuant to Republic Act (RA) No. 10149 or the "GOCC Governance Act of 2011," ordered the deactivation of the FCIEI on 21 December 2021, through Memorandum Order No. 2021-14 (s. 2021); and

WHEREAS, pursuant to Section 5 (a) of RA No. 10149, the GCG has recommended the abolition of the FCIEI after determining that: (i) its original purpose is no longer relevant to the State; (ii) it is no longer achieving the objectives and purposes for which it was originally designed and implemented; (iii) it is not cost efficient; (iv) it is dormant and non-operational; and (iv) it is involved in an activity best carried out by the private sector;

NOW, THEREFORE, the following are hereby ordered:

SECTION 1. Abolition of FCIEI. — The FCIEI is hereby abolished.

SECTION 2. Liquidation of Assets and Settlement of Liabilities. — The assets of the FCIEI shall be liquidated 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 shall be assumed by its parent company, the NDC.

SECTION 3. Creation of a Technical Working Group. — To implement the provisions of this Order, a Technical Working Group (TWG) is hereby created to be composed of representatives from the following:

a. GCG;

b. NDC; and

c. PEZA.

SECTION 4. Powers and Functions of the TWG. — The TWG shall have the following powers, duties, and functions:

a. 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;

b. Oversee the transfer of the remaining government functions of the FCIEI to concerned agencies;

c. Submit to the Office of the President a quarterly report on the disposition of the assets of the FCIEI, and the implementation of its abolition; and

d. Perform such other functions as may be necessary to implement this Order.

The TWG shall submit an initial status report within thirty (30) days from the effectivity of this Order.

SECTION 5. Repeal. — All other orders, issuances, rules and regulations, or parts thereof, which are inconsistent with the provisions of this Order are hereby repealed or modified accordingly.

SECTION 6. Separability. — If any provision of this Order is declared invalid or unconstitutional, the other provisions not affected thereby shall remain valid and subsisting.

SECTION 7. Effectivity. — This Order shall take effect immediately upon publication in the Official Gazette or in a newspaper of general circulation.

DONE in the City of Manila, this 23rd day of June, in the year of Our Lord, Two Thousand and Twenty-Two.

 

Published in the Official Gazette, Vol. 118, No. 27, p. 7685 on July 4, 2022.