Gov’t to abolish HGC
MANILA, Philippines - The Duterte administration is looking to abolish the Home Guaranty Corp. (HGC), similar to its action on the Quedan and Rural Credit Guarantee Corp. (Quedancor).
In a chance interview on the sidelines of a recent tax forum, Finance Secretary Carlos Dominguez said guarantee agencies such as HGC have too many overlapping functions with other agencies.
Dominguez said the government hopes to be able to abolish or merge the HGC with other agencies into a single guarantee corporation. “We hope to do it this year,” he told The STAR.
Dominguez hopes to be able to do it under the Governance Commission, which had recommended the abolition of Quedancor.
It is for this reason, Dominguez said that the government is no longer actively looking for a new head of the HGC, one year into the administration of President Duterte.
HGC is a state-owned housing guarantee agency. Since its creation in 1950 as the Home Financing Commission, HGC has institutionalized a system of credit guaranties that has become an integral component of the government’s shelter program.
The Commission on Audit (COA) has found HGC incurring billions in losses due to alleged mismanagement and corruption.
Last month, Duterte also ordered the abolition of Quedancor, citing operating losses in the last five years.
Quedancor is no longer allowed to continue its guarantee function under its charter, according to Memorandum Order 13 that the President signed.
The Governance Commission for state corporations recommended the abolition, saying Quedancor had been dormant and non-operational and was performing functions that duplicate or unnecessarily overlap with functions of other government agencies.
“It is not producing desired outcomes or no longer achieving the objectives and purposes for which it was originally designed and implemented,” according to the order.