Memorandum Order No. 58

Abolition of NFC

SECTION 1. Abolition of NFC. The NFC is hereby abolished.

Liquidation of Assets and Settlement of Liabilities

SECTION 2. Liquidation of Assets and Settlement of Liabilities. The assets of the NFC shall be liquidated to settle the outstanding liabilities of the Corporation, in accordance with relevant laws, rules and regulations.

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. Department of Agriculture; c. Land Bank of the Philippines; d. Department of Budget and Management; and e. The Privatization and Management Office of the Department of Finance.

SECTION 4. Powers and Functions of the TWG. The TWG shall have the following powers, duties and functions: a. Settle the liabilities of the NFC, undertake steps necessary in the liquidation of its assets, and assist in the winding-up of its corporate affairs; b. Resolve issues on the transfer of equity investment in the NFC from the NLDC to the Land Bank of the Philippines in relation to Memorandum Order No. 85 (s. 2015); c. Implement the retirement plan for NFC personnel, subject to prior determination of its financial capacity to pay for the said benefit, in accordance with applicable laws, rules and regulations; d. Submit to the Office of the President a quarterly report on the disposition of the assets of the NFC, and the implementation of its abolition; and e. Perform such other actions as may be necessary to implement this Order.

Separation Pay of Affected Officials and Personnel

SECTION 5. Separation Pay of Affected Officials and Personnel. The TWG is hereby authorized to grant separation pay to affected officials and personnel of the NFC with the following maximum rates:   Length of Government Service Rate First 20 years 1.00 x MBS*x no. of years 20 years and 1 day to 30 years 1.25 x MBS x no. of years 30 years and 1 day and above 1.50 x MBS x no. of years * Monthly Basic Salary The separation pay authorized herein shall be charged against the available corporate funds of the NFC, and such other funding sources that the Department of Budget and Management may identify, subject to existing budgeting, accounting and auditing laws, rules and regulations.

Repeal

SECTION 6. 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.

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.

Effectivity

SECTION 8. 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 1st day of December, in the year of our Lord, Two Thousand and Twenty One.       By authority of the President:       (SGD.) SALVADOR C. MEDIALDEA     Executive Secretary