The policymaking council of the National Food Authority (NFA) has approved the sale of the agency’s P1 billion worth of idle property in Valenzuela City as part of efforts to improve its balance sheet.
Documents from the agency showed that part of its property at its north district office would be sold to the Department of Transportation (DOTr) for P1.025 billion—the first property divestment under the term of retired major general Jason Aquino, who took office in January last year. The lot will be used for a project of the DOTr-attached Philippine National Railways.
As a rule, proceeds of NFA’s property sales will go to its corporate funds for operations, which may be seen as a preparation for the agency’s expanded role in the country’s food security.
After President Duterte proposed that the agency handle the procurement and distribution of other agricultural commodities aside from rice and corn, NFA has been preparing a concept paper that would detail its participation. The paper is set to be submitted to the NFA council this month.
The move is expected to give the state-run organization additional budget and manpower to implement the program nationwide.
NFA is also still in the process of cutting down its billions of debt, which ballooned during the term of former President Arroyo mostly due to rice procurement operations.
As of December last year, NFA was able to reduce its debt by P5.9 billion to P152.64 billion from P158.62 billion in 2016 through cost cutting and collections from various regional offices.
Asked whether there would be more divestments in the future, NFA spokesperson Rebecca Olarte said no other plans were in the pipeline yet.