Senate resolution seeks probe into PSALM dividend non-remittance
THE Senate has asked state agency Power Sector Assets and Liabilities Management Corp. (PSALM) to explain the non-remittance of P27.28 billion in dividends to the national government, which it said covered the “past decade.”
“PSALM must provide a detailed accounting of its liabilities to the national government and give a satisfactory explanation as to why it has not complied with its clear-cut responsibilities under the law for more than a decade now,” said Senator Sherwin T. Gatchalian, chairman of the Senate committee on energy, on Monday.
Mr. Gatchalian has filed Senate Resolution No. 234, calling for an inquiry into PSALM’s non-remittance.
He cited a 2015 annual audit report of PSALM submitted to the Commission on Audit that showed the stateowned and controlled corporation had remitted P2.11 billion from 2004 to 2015, even if it had declared net earnings of P58.78 billion during the period.
Mr. Gatchalian said the 93% shortfall in expected remittances “must be investigated to uncover potential liabilities for poor corporate management or even malversation and corruption.”
“We need to get to the bottom of this questionable misplacement of funds so that we can recover this money and have it delivered to its rightful place within the National Treasury,” he said.
Republic Act No. 9136, or the Electric Power Industry Reform Act (EPIRA) of 2001, the law that restructured the power industry, created PSALM to take over ownership of all the generation assets of the National Power Corp., independent power producer contracts, real estate and all other disposable assets including the transmission business.
Mr. Gatchalian’s statement said PSALM is mandated by RA 7656 — or the Government Owned and Controlled Corporations Dividend Law — to declare and remit at least 50% of its annual net earnings as cash, stock, or property dividends to the Bureau of the Treasury. —