LWUA must pay govt P263M in unremitted dividends

The Local Water Utilities Administration must pay the government P263 million in unremitted dividends, instead of giving its officials perks and bonuses, Sen. Franklin Drilon said Tuesday. "They have refused to remit [those dividends] and yet they have declared bonuses," Drilon told reporters after the Senate hearing on alleged perks and bonuses received by executives of government-owned and -controlled corporations (GOCCs). The LWUA remitted P237 million to the national coffers from 2006 to 2007. But LWUA acting administrator Daniel Landingin said the board of directors issued a resolution suspending payments to the government after 2007. Republic Act 7656 requires GOCCs — like the LWUA — to declare and remit at least 50 percent of annual net earnings as cash and stock or property dividends to the national government. "This is not discretionary, this is mandatory," Drilon said during the hearing. Drilon, chairman of the Senate finance committee, said that the LWUA directors had no right to suspend payments to the national government. "The law is clear, no exemptions are granted." He would be forced to bring the matter to the Ombudsman should the LWUA refuse to pay the government, Drilon said. "[This is in] violation of the law causing prejudice to the government." Landingin said that he would have to take up the matter with the LWUA board. He received a P3.3 million compensation package in 2009, which includes P312,000 in representation allowances, a uniform allowance, an anniversary bonus, birthday cash gifts, and other assistance packages, Landingin said. Three company vehicles were issued to his office alone, he added. Landingin told the committee that Prospero Pichay Jr., head of the LWUA board of trustees, was receiving P10,000 for each board meeting he attended. —Kimberly Tan, GMANews.TV