Gov’t rakes in over P77 B from GOCCs

MANILA, Philippines - Government-owned and controlled corporations have turned over P77 billion in dividends and other forms of contributions to national coffers in the first three years of the Aquino administration, as against the P96 billion recorded for the entire nine-year term of former President Gloria Macapagal-Arroyo.

President Aquino made the announcement in a speech during ceremonies marking “GOCC Dividends Day” at Malacañang yesterday.

“It’s far apart, right? What we know is that a losing corporation may draw from limited government funds. In the end, it’s our ‘boss’ the Filipino people who will end up losers. We will never allow that to happen,” Aquino said in Filipino.

For this year alone, GOCC contribution reached P28 billion from P19 billion recorded last year. 

He said his administration’s commitment to good governance has enabled more GOCCs to remit to the national government – from 22 in 2012 to 38 in the first months of this year.

He cited as example the Philippine Reclamation Authority (PRA) which had turned over “more than P2 billion” – the first time in its 33 years in operation.

Under Republic Act No. 7656, GOCCs are required to “declare and remit at least 50 percent of their annual net earnings as cash, stock or property dividends to the national government.”

Aquino also disclosed that salaries of officials and employees of GOCCs are now very competitive, and “almost equivalent to their counterparts in the private sector.”

In 2011, Aquino signed Republic Act No. 10149, or “The GOCC Governance Act of 2011.” The law aims to reform the operations of state-owned enterprises. The reforms include eliminating the practice of granting excessive bonuses and allowances to executives.

In the same year the law was enacted, GOCCs remitted  P19.2 billion to the national government.

Eight GOCCs belonging to the elite circle of the so-called “Billionaire’s Club” are PRA, Philippine Ports Authority (P1.03 billion), Manila International Airport Authority (P1.54 billion), Philippine Amusement and Gaming Corp. (P7.18 billion), Power Sector Assets and Liabilities Management Corp. (P2 billion), Bases Conversion Development Authority (P2.30 billion), Development Bank of the Philippines (P3.16 billion) and Land Bank of the Philippines (P6.24 billion).