Newly abolished GOCC ends year 2021 P908M in the hole

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RECENTLY abolished Northern Foods Corporation (NFC) finished 2021 with a deficit of P908.371 million after years of uninterrupted operational losses, according to the audit report released yesterday by the Commission on Audit.

According to its 2021 Financial Statements, the NFC posted service and business income totaling P150.348 million but incurred operating expenses of P221.034 million for a net loss of P70.687 million — its worst record ever.

At the time of its abolition, the NFC had seven management officials,70 regular employees, one consultant, and 91 seasonal employees whose services are engaged during the processing season.

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Under the abolition plan, displaced workers were offered separation pay to be computed based on the years of service they have rendered.

Also adversely affected were more than 1,500 Ilocano farmers who depended on the government-owned or controlled corporation (GOCC) for regular income as tomato contract growers.

The NFC, whose plant is based in Sarrat, Ilocos Norte, was a major supplier of tomato paste to food chains, sardine makers, and tomato sauce/catsup manufacturers.

As of yearend 2021, it had a production area covering 365 hectares, produced 12,914 tons of tomato fruit, and sold 2,849 tons of tomato paste.

It also had 146.7 kilograms of hybrid tomato seeds and was conducting studies on natural control of tomato pests and development of more climate-resilient hybrids.

Way back in 1992, the NFC was being eyed for privatization but three public biddings conducted in 1995 all fell through.

An attempt to dispose of the company through negotiated sales in 1996 and 2000 also failed.

President Duterte approved the recommendation of the Department of Finance to abolish the NFC last December 1, officially terminating the corporate life of the government firm.

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