Govt firms remit P29.25B to nat'l treasury in 2010

Some government-owned and -controlled corporations (GOCCs) and government financial institutions (GFIs) remitted to the national government a total of P29.25 billion in dividends last year, government records showed Friday. At Malacañang's Rizal Ceremonial Hall on Friday, President Benigno Aquino III received from 19 GOCCs and GFIs some checks representing unpaid cash dividends for 2009 and partial dividends for 2010. GOCCs and GFIs remitted just P9 billion last year, according to the President. With P14.23 billion, the Bangko Sentral ng Pilipinas contributed most to the national government. Land Bank of the Philippines and Development Bank of the Philippines turned over to the national treasury some P4 billion and P2.8 billion, respectively. Power Sector Assets and Liabilities Management Corp. remitted to the national government some P2 billion that represented payments for guarantee fees, dues, and other payables. Bases Conversion Development Authority contributed to the government's purse some P1.8 billion that represented largely to the proceeds of its assets' sale. Manila International Airport added some P1.49 billion to the government's pocket. Other government corporations that turned over dividends to the national government included: — Philippine Ports Authority (P650 million); — Philippine Deposit Insurance Corp. (P500 million); — Philippine National Oil Co. (P452.9 million); — Philippine Reclamation Authority (P335 million); — Philippine Economic Zone Authority (P221 million); — Trade Investment and Development Corp. (P150 million); — Philippine Leisure and Retirement Authority (P140.6 million); — Clark Development Corp. (P100 million); — National Development Co. (P49.4 million); — Cebu Ports Authority (P40 million); — National Electrification Administration (P14.5 million); — National Home Mortgage Finance Corp. (P3 million); and — Philippine Fisheries Development Authority (P2 million). More profits Finance Secretary Cesar Purisima said the Aquino administration will double its efforts to get more profits from government corporations to boost the country's fiscal position. "We endeavor to begin a tradition — a tradition of regular, sustainable, and increasing share of the national government in government corporations' profits," Purisima told Malacañang reporters in the same event. Purisima pointed out that the Finance Department will take a closer look in various government firms to ensure good corporate governance. Gone were those days when board decisions, compensations, and transactions were "crafted in secrecy, shielded from the glaring view of the public, and hidden from the watchful eyes of a vigilant citizenry," Purisima said. Under Republic Act 7656 or the Dividends Law of 1994, government-owned and -controlled corporations and government financial institutions are required to remit half of their income each fiscal year to the national government. The remittance should be in the form of cash or in real estate properties with clean titles. Commission on Audit records showed that there are 89 existing government corporations. Purisima believes that the government can still generate more revenues from the assets of government corporations. Citing data from US-based investment banking firm Goldman Sachs, Purisima said there is approximately $141 billion worth of assets government corporations can develop under a market-based operation. "Imagine what we can do if we make this a market-based operation. If we bring this public, imagine what kind of valuations we can generate and what kind of profits we can make to help support the agenda of the national government," Purisima said. Good governance In a speech, Aquino assured that the P29.25 billion dividends and other remittances turned over by 19 state firms will be given back to the people in the form of social services. "As you can see, we are working [harder] to bolster our abilities to give back to the Filipino people what they have given us," he said. "Uulitin ko po: Sila ang boss natin. We will do this not only because this is what we are mandated to do, but more importantly, because this is the right thing to do." Stressing that good governance is the cornerstone of his administration, Aquino said he is working on achieving a transparent and accountable government by undertaking reforms to enhance the ability of government corporations to act as stewards of people's resources. During Aquino's early days in his administration, he discovered that officials of some government firms receive exorbitant allowances, pushing him to issue Executive Order 7 that directs the rationalization of the compensation and position classification system in GOCCs and GFIs. "GOCCs will no longer be milking cows for politicians and their wards," he pointed. Road map Aquino said that officials of state firms will soon be required to sign a performance contract so that there will be basis to remove non-performing state executives. Finance Department is also developing an IT-based reporting system that will require full disclosure of several aspects of state firms' operations, he added. "The public will have access to the financial and operational results, renumeration policies, related party transactions, governance structures, and policies, among others," according to the President. A thorough review of government corporations will be conducted during the first quarter of this year, Aquino said. The government will eventually draft a road map for GOCCs and GFIs. Aquino pointed out that in line with the government's zero-based budgeting, the continued operation of government corporations has to be justified once the GOCC Governance Act of 2011 — introduced by Sen. Franklin Drilon — will be passed into law. "The time for patronage is over. Now is the age of professionalism, meritocracy, and government institutions that are committed to the people.... We will leave a country less poor, easier to invest in, and where people trust their government and all of its entities to work for their interests," Aquino said. — JE, GMANews.TV