GOCC dividends hit P117 billion in September

MANILA, Philippines — A total of P116.84 billion has been remitted to the Bureau of the Treasury (BTr) as part of the national government’s revenue share from government-owned or controlled corporations (GOCC) as of September, the Department of Finance announced yesterday.

DOF Secretary Ralph Recto said the full-year projection of the dividend remittance could reach more than the agency’s “conservative” expectation of P117 billion to P157 billion. Once attained, it is equivalent to a 34 percent increase.

“Every peso will be put to its rightful use, growing the economy and uplifting the lives of our people. It is incumbent upon every GOCC head to heed the directive to uphold integrity at all times,” Recto said.

State-owned financial institution Land Bank of the Philippines led all GOCCs by remitting the highest contribution of P33.53 billion to the national government, which Landbank had promised to remit in May this year.

Last year, Landbank also topped all GOCCs with the highest remittance to the Treasury at P32.12 billion.

The Bangko Sentral ng Pilipinas followed by remitting P18.9 billion and the Philippine Amusement and Gaming Corp., P12.7 billion.

Philippine Deposit Insurance Corp. contributed P10.1 billion, followed by energy company Power Sector Assets and Liabilities Management Corp., which contributed nearly P9 billion.

All GOCCs are required to declare and remit at least half of their annual income to the Treasury, whether in cash, stock or property dividends, in line with the Dividends Law of 1994.

These dividends provide non-tax revenues that support the government’s infrastructure, social and economic initiatives. The DOF may also require GOCCs to remit more than the 50 percent minimum if they have surplus cash or windfall profits.

“And while in the private sector the measure is shareholder value, in GOCCs and across the entire government, it is Filipino value. The welfare of every Filipino must always be at the heart of everything we do,” Recto said.

Meanwhile, the Bases Conversion and Development Authority contributed P5.3 billion; the Philippine Ports Authority, P5.2 billion, the Manila International Airport Authority, P3.3 billion and the Clark Development Corp., P2.49 billion.

Also remitting significant amounts were the Philippine National Oil Company, Philippine Charity Sweepstakes Office, Subic Bay Metropolitan Authority, Philippine Economic Zone Authority, Philippine Guarantee Corp. and Civil Aviation Authority of the Philippines.

A total of 32 GOCCs have either been approved to be abolished, according to the Government Commission for GOCCs (GCG) chairperson Marius Corpus.

During a Senate finance hearing, GCG reported that 25 state-owned corporations are still under various stages of liquidation, including submission, review or finalization of a liquidation plan, winding down and dissolution of activities. The remaining seven GOCCs were completely abolished as of August.

As of July, there are 116 existing GOCCs, 28 of which are government financial institutions.