President Benigno S. Aquino III has issued an order abolishing the Philippine Veterans Assistance Commission (PVAC) and the Philippine Veterans Investment Development Corp. (PHIVIDEC), transferring their functions to other agencies.
The President issued Memorandum Order No. 87 last February 11 for the abolition of the PVAC and the PHIVIDEC, which will be undertaken by the Governance Commission for Government-Owned and -Controlled Corporations (GCG), in coordination with the Department of National Defense (DND).
The PVAC's function of providing services to veterans will be absorbed by the Philippine Veterans Affairs Office (PVAO), while its commercial function will be given to the PHIVIDEC Industrial Authority (PIA).
The DND, PVAO and the Privatization and Management Office will undertake the disposition of PHIVIDEC assets.
The Department of Finance (DOF), on the other hand, will pay for the outstanding financial obligations of PVAC and PHIVIDEC from the proceeds of the assets sale based on government budgeting and auditing regulations.
The President's memo also mandates the creation of the technical working group for the implementation of the order. This group will be composed of the DND, PVAO, PIA, DOF, Bureau of Treasury and PMO.
The PVAC, created by Presidential Decree 244, was mandated to draw, invest and manage private financial contributions for the employment, medical care and education of veterans and their dependents.
The PHIVIDEC meanwhile was established through Presidential Decree 243 for the purpose of formulating and executing policies for the full and continued employment of the productive capabilities and investment of military veterans and retirees.
However, the unabated losses sustained by PVAC and PHIVIDEC made them no longer financially viable.
The President said in the order that in line with Sections 6 and 8 of Executive Order 43 and the Philippine Development Plan 2011-2016, the abolition of the two government-owned entities will serve the best interest of the state to improve national productivity and reduce ineffective spending of government money. (PCOO News Release)