Monday, July 24, 2017

NPC commits to pay, settle dividends — DOF



Published June 30, 2017, 10:01 PM By Chino S. Leyco

State-run National Power Corp. (NPC) has committed to remit additional dividends to the Bureau of the Treasury and payoff its arrears, the Department of Finance (DOF) announced yesterday.
In a statement, Finance Undersecretary Antoinette C. Tionko said NPC will remit additional P472 million to state coffers and settle the company’s P2.97 billion dividends in arrears for the 2012 to 2015 period payable in five years.
In a report to Finance Secretary Carlos G. Dominguez III, the DOF’s Corporate Affairs Group (CAG) said the NPC agreed to remit P594 million per year, starting in the third quarter for its unpaid dividends.
The payoff is on top of the regular dividends due the national government for the forthcoming years, the DOF said.
Tionko said the government stands to gain, starting this year and for the next four years, an additional P3.44 billion in revenues that will be spent for infrastructure and social spending.
The finance official, who heads the CAG, said the NPC had remitted P333 million to the national government in May.
“We told NPC that even if we collect they will still be left with sufficient cash for their operations,” Tionko said.
Dominguez said earlier that the DOF’s target is to collect a total of P114 billion in arrears from government-owned and controlled corporations (GOCCs), including the NPC, the Power Sector Assets and Liabilities Management Corp. (PSALM) and Philippine Deposit Insurance Corp. (PDIC).
The bulk of these arrears are due from five GOCCs, namely, the PDIC with unpaid dividends of P46.5 billion; PSALM, P29.87 billion; NPC, P20.66 billion; Philippine Charity Sweepstakes Office (PCSO), P6.89 billion; and the Civil Aviation Authority of the Philippines (CAAP), P6.31 billion.
Under Republic Act 7656, GOCCs are required to declare their annual income after tax and other deductions, and to remit 50 percent of their net income to the Bureau of Treasury (BTr).

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