GOCC commission freezes industrial estate’s power to engage in contracts

THE “deactivation” of First Cavite Industrial Estate, Inc. (FCIEI) moved forward with a freeze on its power to enter into contracts or conduct other transactions in preparation for its eventual abolition, the Governance Commission for Government-owned or -controlled corporations (GCG) said.

In Memorandum Order 2021-14 signed Dec. 21, the GCG said the government-run industrial estate has officially entered the “deactivation” stage of its winding-down process.

“In accordance with the declared policy of the state that government assets and resources are used efficiently, the GCG has determined it is in the best interest of the state to deactivate FCIEI in the interim, pending its formal abolition,” according to the order.

In 2015, President Benigno S. Aquino III approved in principle the abolition of the industrial estate provided that it settles liabilities with the Philippine Economic Zone Authority (PEZA).

The GCG in 2016 filed with the Office of the President the agreement between the industrial estate and PEZA to settle payables.

The deactivated organization’s governing board is tasked with preserving the organization’s assets before the estate is finally shut down.

It will no longer be allowed to hire and receive benefits as a government-owned or -controlled corporation. — Jenina P. Ibañez