Memorandum Order No. 90 — MEMORANDUM ORDER NO. 90 DIRECTING THE ABOLITION OF THE ARMED FORCES OF THE PHILIPPINES-RETIREMENT AND SEPARATION BENEFITS SYSTEM (AFP-RSBS), PRIVATIZATION OF ITS SUBSIDIARIES, AND FOR OTHER PURPOSES

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SECTION 1 · Abolition of AFP-RSBS SECTION 2 · Privatization of Subsidiaries SECTION 3 · Winding Down and Liquidation SECTION 4 · Separation Pay for Affected Personnel SECTION 5 · Creation of Technical Working Group SECTION 6 · Implementing Guidelines SECTION 7 · Separability SECTION 8 · Repeal SECTION 9 · Effectivity

SECTION 1

Abolition of AFP-RSBS

SECTION 1. Abolition of AFP-RSBS. The AFP-RSBS is hereby abolished.

SECTION 2

Privatization of Subsidiaries

SECTION 2. Privatization of Subsidiaries. Pursuant to the liquidation of AFP-RSBS’s assets which includes its shares in its wholly-owned subsidiaries, namely, Monterossa Development Corp. (MDC) and Southern Utility Management and Services, Inc. (SUMSI), the privatization of said subsidiaries is hereby approved.

SECTION 3

Winding Down and Liquidation

SECTION 3. Winding Down and Liquidation. The AFP-RSBS Board shall act as a Board of Liquidators, subject to oversight by the Governance Commission, and is hereby directed to: a. Cease collecting members’ contributions and accrual of interest thereon upon the effectivity of this Order; b. Maintain such number of personnel necessary to wind-down its corporate affairs and cease the hiring of new personnel unless first approved by the Governance Commission; c. Collect all indebtedness due to the AFP-RSBS; d. Continue a corporate operating budget for the purpose of the following: 1.) Continuation of leasing services, for the purpose of preservation of its assets; 2.) Collection of all indebtedness; 3.) Release of penalties to loans and inter-company receivables due to AFP-RSBS, provided it is not manifestly prejudicial to the government, and in compliance with existing auditing rules and regulations; 4.) Refund of AFP-RSBS members’ contributions as they fall due; and 5.) Servicing of existing Membership Loan Programs; e. For its Board of Trustees to act as Board of Liquidators, who shall recommend to the GCG dispositive actions for its subsidiaries and affiliates; f. Enter contracts for the following purpose: 1. Sell all its real estate assets, such as, but not limited to, subdivision lots, house and lots, memorial lots, raw lands and all acquired assets in accordance with the existing internal policies of AFP-RSBS; 2. Sell its golf and country club shares, and all other personal properties; 3. Manage, preserve and maintain its buildings, facilities and equipment in line with the winding down activities; 4. Complete deliverables to subdivisions, and turn over completed subdivisions to LGUs and homeowners association; and 5. Maintenance and preservation of existing projects and properties, including security services, insurance, etc. g. Pursue activities necessary to perfect the ownership of its real estate assets such as, but not limited to, Land Use Conversion, Comprehensive Agrarian Reform Program (CARP) Exemption, Reconveyance, Segregation, and Transfer of TCTs; h. Continue, abrogate, and/or re-negotiate existing Joint Venture (JV) Agreements/Contracts, subject to the revised National Economic and Development Authority (NEDA) JV Guidelines; and i. Maintain full power to sue and file complaints for the protection of the rights and interests of the corporation and engage the services of lawyers, accountants and other professionals, in accordance with existing laws, as may be necessary for the AFP-RSBS to protect its interest, wind-down its corporate affairs and carry out its mandate of preserving, managing and disposing its remaining assets. The foregoing are without prejudice to supplemental guidelines from the Governance Commission in implementing this Order.

SECTION 4

Separation Pay for Affected Personnel

SECTION 4. Separation Pay for Affected Personnel. Affected officials and personnel of AFP-RSBS may avail the separation benefits below in addition to retirement or separation benefits allowed under existing laws: YEARS IN SERVICE RATES First 20 years 1.00 x Basic Monthly Pay (BMP) x No. of years 20 years and 1 day to 30 years 1.25 x BMP x No. of years 30 years and 1 day and above 1.50 x BMP x No. of years The payment of separation pay shall be sourced from its corporate funds.

SECTION 5

Creation of Technical Working Group

SECTION 5. Creation of Technical Working Group. To implement the provisions of this Order, the GCG shall be assisted by a Technical Working Group composed of representatives from the following departments, agencies, and GOCCs: Department of National Defense (DND); Department of Finance (DOF); Department of Budget and Management (DBM); Privatization Management Office (PMO); AFP-Retirement and Separation Benefits System (AFP-RSBS); and Armed Forces of the Philippines (AFP).

SECTION 6

Implementing Guidelines

SECTION 6. Implementing Guidelines. The Governance Commission shall issue such implementing rules and regulations as may be necessary to supplement this Order.

SECTION 7

Separability

SECTION 7. Separability. If any provision of this Order is declared invalid or unconstitutional, the other provisions not affected thereby shall remain valid and subsisting.

SECTION 8

Repeal

SECTION 8. Repeal. All other orders, rules, regulations, and issuances or parts thereof which are inconsistent with this Order are hereby repealed or modified accordingly.

SECTION 9

Effectivity

SECTION 9. Effectivity. This Order shall take effect immediately. DONE, in the City of Manila, this 8th day of April, in the year of our Lord, Two Thousand and Sixteen. By Authority of the President: (Sgd.) PAQUITO N. OCHOA, JR. Executive Secretary