The Office of the President has started to flesh out its promised policy of rightsizing of the government bureaucracy with its recent Memorandum abolishing the North Luzon Railways Corporation (NORTHRAIL).
Malacañang decided to scratch the North Luzon Railways Corp. “for not producing the desired outcomes and not generating the level of social, physical, and economic returns.”
Executive Secretary Lucas Bersamin signed Memorandum Order No. 17 by the authority of President Ferdinand Marcos Jr. on Oct. 19.
Based on the Memorandum, the Governance Commission for GOCCs (GCG) determined that NORTHRAIL has met the standards for abolition which include not producing the desired outcomes, no longer achieving the objectives and purposes for which it was designed and created, not being cost-efficient, and does not generate the level of social, physical, and economic returns vis-a-vis the resource inputs.
Isko Moreno Domagoso
It may be recalled that NORTHRAIL was formerly headed as Chairman and CEO by former Manila Mayor Isko Moreno Domagoso who was appointed there by former President Rodrigo Duterte.
Moreno received his appointment from President Duterte in July 2017 but he resigned in October of the same year for personal reasons.
Isko Moreno was unable to do any substantial reform or achievement in that agency. NORTHRAIL has become a huge and moribund government agency that failed terribly in its mission.
Domagoso was appointed chairman and CEO of Northrail by President Rodrigo Duterte in July 2017 but resigned in October of the same year for personal reasons.
In his letter to President Duterte, Domagoso said: “Due to personal reasons, I would like to tender my irrevocable resignation as a member of the board of directors and as chairman and CEO of Northrail effective immediately.”
Domagoso said he is grateful for the opportunity given to him to serve under the Duterte administration.
“The experience I have gained is indeed enriching and has taught me valuable knowledge about the dynamics of national government, specifically running a government-owned and controlled corporation,” he said
Isko’s railways dream
When Moreno was campaigning for the presidency, he told the people of Albay about his desire to complete the task given to him in NORTH RAIL.
“As a general program of governance, one thing na nangyayari ngayon dito is yung diversion road, minor yun sa buong Bicol. Pangalawa yung tren, pumanatag kayo kasi I used to be the chairman of NorthRail, this, Clark-Malolos, Malolos-Tutuban Tutuban-Calamba, Calamba-Bicol, yun matutuloy yun, may awa ang Diyos palarin ako (that is happening here is the diversion road, that is minor in the whole of Bicol. Second is the train, I used to be the chairman of NorthRail, this, Clark-Malolos, Malolos-Tutuban Tutuban-Calamba, Calamba-Bicol, I will continue those if I will be given the opportunity, God willing),” Domagoso said.
BCDA subsidiary
NORTHRAIL is a subsidiary of the Bases Conversion and Development Authority and an attached agency of the Department of Transportation.
The corporation’s primary purpose is to develop, construct, operate, and manage a railroad system to serve Metro Manila, Central Luzon, and Northern Luzon.
The directive of Malacañang also ordered the Bases Conversion and Development Authority (BCDA) board of directors to act as the administrator and liquidator of NORTHRAIL and settle its liabilities, including the payment of separation incentive pay to affective officials and personnel.
The BCDA directors, with the help of the Department of Transportation (DOTr), shall undertake the necessary steps in liquidating NORTHRAIL's assets and assist in the winding up of its corporate affairs.
They shall also conduct an inventory of all NORTHRAIL's existing programs and projects and either terminate or transfer them to concerned government agencies and a list of NORTHRAIL's assets and liabilities and how to dispose of or settle them.
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