GOCC dividend remittance reaches P21.6 B

State-owned corporations remitted P21.62 billion in dividends to the national government in the first nine months, according to the Department of Finance (DOF).

In an interview, Finance Assistant Secretary Soledad Emilia Cruz said the government collected P21.62 billion in dividends from 50 government-owned andcontrolled corporations (GOCC) as of end-September, 20 percent lower than the P27 billion in the same period in 2016.

GOCCs are required to remit at least half of their net profit to the Bureau of the Treasury (BTr) pursuant to Republic Act 7656 or the GOCC Dividend Law. Dividends from state corporations form part of the national government’s nontax revenue.

According to Cruz, the decrease in dividends can be attributed mainly to base effects brought about by the exemption given to the Land Bank of the Philippines this year and a one-time payment made by MactanCebu International Airport Authority (MCIAA) last year.

“Last year, we had a collection from LandBank. For this year, because of the capitalization requirement, we had to (exempt) the collection for this year,” Cruz told reporters.

The LandBank was excused from paying dividends this year to help the bank strengthen its financial profile and enable it to comply with the capital adequacy ratio and Basel III leverage ratio required by the Bangko Sentral ng Pilipinas.

“Also, (last) year there was a collection from Mactan-Cebu (International Airport). It was a substantial amount because they had a windfall collection as a result of the privatization,” Cruz said.

According to Cruz, the Philippine Deposit Insurance Corp. was the largest contribution with P2.6 billion in remittance.

The Development Bank of the Philippines followed with P2.5 billion in dividends, Manila International Airport Authority with P2.2 billion, Civil Aviation Authority of the Philippines with P1.9 billion, Philippine Ports Authority with P1.9 billion and the Bangko Sentral ng Pilipinas with P1.8 billion.