Marcos stated that BCDA has to pay the separation incentive pay of the affected officials and staff of the dissolved company from the liquidated assets of NorthRail.
All affected staff and officials of NorthRail can avail the following separation benefits: for the first twenty years of service in the company, they will receive one month's salary multiplied by the number of years of their service.
Those who have served for 20 years and one day up to 30 years will receive separation pay equivalent to 1.25 x monthly basic salary x number of years.
Those who have served for 30 years and one day or more will receive a separation pay amounting to 1.50 x monthly basic salary x number of years.
The BCDA directors are to be assisted by the Department of Transportation (DOTr) in liquidating the properties of NorthRail and dealing with matters related to the corporation.
BCDA and DOTr are also tasked with inventorying the current programs and projects of NorthRail that can be completed or transferred to other government agencies.
Malacañang stated that Marcos ordered the dissolution of NorthRail as it no longer meets its objectives and aspirations based on its formation. This was previously a project of the Arroyo administration.
The directive for NorthRail's abolition is contained in Memorandum Order 17, signed by Executive Secretary Lucas Bersamin on behalf of the President.
Established in 1995 and registered with the Securities and Exchange Commission, NorthRail was created as a subsidiary of BCDA to develop, construct, operate, and manage a railroad system serving Metro Manila, Central Luzon, and Northern Luzon.
The NorthRail project was set to connect Caloocan and Malolos, Bulacan.
However, the National Economic and Development Authority Board approved the North-South Commuter Railway Project in 2015, to be funded by official development assistance from Japan, thereby rendering the NorthRail project void.
(Photo by NorthRail)
