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GOCCs commended for record-high P40-B remittance

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By Genalyn Kabiling

President Duterte has called on government firms to sustain efficient operations and public service after commending them for another record-high remittance to the national coffers.

President Rodrigo Roa Duterte (ALFRED FRIAS / PRESIDENTIAL PHOTO / MANILA BULLETIN)

President Rodrigo Roa Duterte (ALFRED FRIAS / PRESIDENTIAL PHOTO / MANILA BULLETIN)

The President said the dividend contributions of the government-owned and controlled corporations (GOCCs) would help bankroll the government’s vital infrastructure programs and social services.

“Let me take this opportunity to thank our GOCCs for the P40 billion remittance for 2018 – a 32 percent increase from the 2017 figure and the highest in 25 years. Bilib…  saludo ako sa inyo [I’m impressed, I salute you],” Duterte said during the celebration of GOCC Day in Malacañang.

“I encourage you to further intensify your efforts towards efficiency, effectiveness [and] responsiveness in your respective organizations,” he said, citing the “hardworking” officials and employees of the GOCCs.

Duterte also praised the Department of Finance for ensuring the financial health of the GOCCs and other entities. He recognized that the success of the GOCCs was crucial to the achievement of the national development agenda.

“Through the years, their remittances have gone a long way in helping us fund our most important infrastructure projects and social programs,” he said.

“As we pursue these endeavors, I expect [you] to embody excellence, integrity, and accountability of us here in government as we journey towards inclusive and sustainable growth,” he said.

At the Palace ceremony, Finance Secretary Carlos Dominguez III reported that total dividend collections from 53 GOCCs have reached a “record amount” of P61.3 billion as of July 2019.

The Philippine Amusement and Gaming Corporation (Pagcor) has the highest dividends at P16.117 billion so far, followed by the Philippine Deposit Insurance Corporation (PDIC), P4.583 billion.

Other top contributors are Bangko Sentral ng Pilipinas (BSP), P4 billion; Philippine Ports Authority (PPA), P3.515 billion; Civil Aviation Authority of the Philippines (CAAP), P3.509 billion; Manila International Airport Authority (MIAA), P3.424 billion; Land Bank of the Philippines (LBP), P1.960 billion; and National Power Corporation (NPC), P1.437 billion.

The Finance department has allowed the Land Bank and Development Bank of the Philippines (DBP) to retain the dividends amounting P15.6 billion to boost their capital requirements.

For 2018, Dominguez said 56 GOCCs have remitted dividends amounting to P51.24 billion, compared to the P36.46 billion collected in 2017. Eight GOCCs contributed at least P1 billion in cash dividend remittances last year.

The DBP and Land Bank were permitted to keep their P3.24 billion and P7.82 billion dividend contributions, respectively, to augment their capital last year.

The top GOCC contributors in 2018 are the Philippine Deposit Insurance Corporation, P8.844 billion; CAAP, P6.224 billion; BSP, P3.637 billion; PPA P3.103 billion; Pagcor, P2.5 billion; Philippine Charity Sweepstakes, P2.535 billion; MIAA, P2.251 billion and NPC, P1.410 billion.

Dominguez said the GOCC dividends collected by the government would help offset the subsidies to pay out to state enterprises performing crucial social missions. The funds would also help the government hold down the budget deficit, and fund the administration’s infrastructure and social programs.

He also said that 2019 dividend collections help provide funding for the pensions of the uniformed personnel and augment funding for the Rice Competitiveness Fund created by the rice tariffication law.

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