The Governance Commission for Government Owned or Controlled Corporations (GCG) has approved the request of the Duty-Free Philippines Corp. (DFPC) to defer the implementation of its restructuring plan until next month.
In a statement over the weekend, GCG said it granted the request of DFPC to delay the implementation of the Implementing Rules and Regulation of the restructuring plan for 60 days from March 15, 2023.
The GCG, however, said the deferment may have a negative effect on the ongoing status of DFPC given its limited fiscal space.
GCG approved the restructuring plan via memorandum order no. 2022-08 issued in September last year, which said among other things “a reorganization of the DFPC is necessary to address the operational and financial challenges of the corporation due to the COVID-19 pandemic. calls for
“The restructuring plan of DFPC with 32 organizational units (including DFPC Stores) with a corresponding 345 plantilla positions is hereby approved,” the memorandum order said.
The memo said that as of April 11 last year, there were 1,180 positions in the DFPC, of which 748 are filled.
GCG said the implementation of its order shall comply with the following guidelines: filling up of vacant positions shall be programmed and subject to the approval of the Board to ensure the overall financial viability of DFPC operations, actual revenue collection and operating requirements; funding requirements for regular positions shall be included in the Corporate Operating Budget of DFPC; and the Governing Board, through the President, shall be accountable for the payment of separation benefits to the retirees/separates pursuant to existing laws.
GCG said the request for the deferment was made to enable DFPC to prepare for the transition of the implementation of the new organizational structure and staffing pattern.
“The Governance Commission understands that DFPC may need more time given that the restructuring plan may have certain repercussions in policies and core operations,” GCG chairperson Alex Quiroz said.
“GCG takes into consideration the inputs of the employees’ union and other government agencies concerned. The deferment will be granted to give way to a streamlined transition that will be beneficial to all concerned,” Quiroz added.
Pursuant to Section 5(a) of Republic Act No. 10149, the GCG is mandated to ascertain whether a GOCC should be reorganized, merged, streamlined, abolished or privatized, in consultation with the department or agency which the GOCC is attached. Angela Celis
