NFA assets may be sold to pay ₧145-B debts
THE Department of Finance (DOF) is looking into selling some of the assets of state-run National Food Authority (NFA) to cover part of the agency’s debt, which has already ballooned to P145 billion.
Finance Assistant Secretary Antonio Joselito G. Lambino II told the BusinessMirror on Tuesday that the assets that may be sold are those that are no longer necessary to the
food agency’s buffer stocking role.
“NFA has assets which should be carefully examined. What among those assets are still necessary under the emergency buffer stocking role and what may be not necessary anymore? So those that are considered not necessary anymore can be considered to pay those debts,” Lambino said in a mix of English and Filipino.
The “buy high, sell low” policy of the government to ensure food security and stabilize rice prices— which are mandates of the NFA— has caused the food agency to incur debts.
While the DOF has yet come up with their estimates on how much the government can get from selling some of NFA’s assets, Lambino said the value of the assets that may be sold may not reach P145 billion. The food agency has assets all over the Philippines, including warehouses.
However, Lambino said the government will have to make sure that the buffer stocking role function of NFA is fulfilled before determining which assets should be sold or retained.
Aside from selling NFA’s assets, Lambino said the national government will have to figure out other measures that should be implemented during meetings with the NFA and the Governance Commission for Government-Owned and -Controlled Corporations (GCG).
Given the debt problem of the agency, Budget Secretary Benjamin E. Diokno said the GCG will also make an assessment of the separation pay and pension of workers that may be displaced by the NFA’s restructuring.
“If the agency does not have enough corporate funds, it will eventually have to run to the national government for assistance,” Diokno told the BusinessMirror via SMS.
This comes after the NFA Council has approved a motion instructing the food agency to submit a restructuring plan within 30 days, from the initial proposal of 180 days, as the government will implement a tariffied regime for rice starting March 5.
According to the DOF, the meeting was called to immediately discuss the Implementing Rules and Regulations of RA 11203, or the Rice Tariffication Act, following its signing into law by President Duterte on February 14.