PBBM orders abolition of North Luzon Railways Corp.
PBBM orders abolition of North Luzon Railways Corp.
PBBM orders abolition of North Luzon Railways Corp.
by Ellicia Del Mundo22 October 2023
Photo courtesy: NORTHRAIL website

President Ferdinand ‘Bongbong’ Marcos Jr. has ordered the abolition of North Luzon Railways Corp. (NORTHRAIL).

Under Memorandum No. 17 dated Oct. 19 but released only on Oct. 21, it was cited that the Governance Commission For GOCCs (GCG) had “ordered the deactivation of NORTHRAIL” in May 2019 because it met the standard for abolition.

The standard for abolition that NORTHRAIL met includes “not producing the desired outcomes”, “no longer achieving the objective and purpose for which it was designed and created”, and “not cost efficient and does not generate the level of social, physical, and economic returns vis-a-vis the resource inputs.”

“The NORTHRAIL is hereby demolished,” the order reads.

The Bases Conversion and Development Authority (BCDA) Board of Directors has been tapped to “act as the administrator of NORTHRAIL” and “settle” its liabilities, “undertake steps necessary for liquidation”, “assist in winding-up corporate affairs”, “conduct an inventory of all NORTHRAIL existing programs and projects”, and among others.

"The GCG shall monitor the implementation of the abolition of NORTHRAIL," the order said, adding that the Department of Transportation (DOTr) would serve as NORTHRAIL's supervising agency.

Meanwhile, the Securities and Exchange Commission (SEC) "shall assist the BCDA in ensuring that the dissolution of the Corporation is conducted in accordance with the provision of RA No. 11232 or the Revised Corp. Code of the Philippines."

“The Office of the Government Corporate Counsel shall provide the necessary legal assistance to the BCDA relative to the dissolution and winding-up of the affairs of NORTHRAIL," it said.

According to Memorandum No. 17, separation incentive pay must be awarded to all affected NORTHRAIL officials and personnel.

"The Order shall take immediately upon publication in the Official Gazette or in a newspaper of general circulation," it stated.

Registered with the SEC in July 1995, NORTHRAIL's principal mandate is to "develop, operate, manage a rairoad system to serve Metro Manila, Central and Northern Luzon."

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