First Cavite Industrial Estate abolished for being ‘no longer relevant’

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First Cavite Industrial Estate abolished
Photo from FCIE website.
  • First Cavite Industrial Estate Inc., formed in 1990 by the National Development Co. and its partners, was abolished for being “no longer relevant to the State” after completing its original purpose in 1995
  • Duterte ordered the dissolution of FCIEI through Memorandum Order No. 62 dated June 23, 2022, issued by Executive Secretary Salvador Medialdea
  • The group developed NDC’s property in Dasmariñas, Cavite, into an industrial estate and economic zone” and had sold all lots in that estate to locators by 1995
  • FCIEI would have been dissolved after that, but the NDC board decided to keep it for future development of another NDC property, which did not materialize

The First Cavite Industrial Estate Inc. (FCIEI) was abolished for falling dormant and irrelevant after completing its original purpose in 1995.

President Rodrigo Duterte issued the dissolution order to Executive Secretary Salvador Medialdea, who declared FCIEI abolished on June 23. The corporation ceased to exist on the same day after the order was published in the Official Gazette.

The joint venture was formed in 1990 by the National Development Company and its partners.

FCIEI’s stated purpose was “to acquire, own, lease, hold, subdivide, construct, develop, equip, operate, maintain and generally deal in industrial estates,” Memorandum Order No. 62 issued by Malacanang said.

Basically, the group was created to “develop NDC’s property in Dasmariñas, Cavite, into an industrial estate and economic zone,” and had sold all lots in that estate to locators in 1995.

Having completed the development of the NDC property, FCIEI would have been abolished but the NDC board decided to defer its dissolution as it might be used to develop another NDC property.

The abolition was recommended after FCIEI failed to undertake another development project and its dissolution was approved in principle in 2015, on the condition that FCIEI’s liabilities, particularly to the Philippine Economic Zone Authority, were settled.

After FCIEI partially settled its liabilities to PEZA on March 7, 2016, the respective boards of NDC and FCIEI approved the dissolution of the company and the Governance Commission for Government-Owned or Controlled Corporations (GCG) order FCIEI deactivated on December 21, 2021.

The GCG thus recommended FCIEI’s abolition, citing that “its original purpose is no longer relevant to the State.”

In MO No. 62, Medialdea declared First Cavite Industrial Estate abolished and ordered its assets “shall be liquidated to settle the outstanding liabilities of the corporation, in accordance with applicable laws, rules and regulations” and its remaining assets and/or liabilities be assumed by its parent NDC.

A technical working group formed to implement the order’s provisions was tasked to submit an initial status report within 30 days from the order’s effectivity, which will be “immediately upon publication in the Official Gazette or in a newspaper of general circulation,” the memo states.

The memorandum order was uploaded to the Official Gazette on June 23, 2022.