STATE-RUN National Power Corp. (NPC) will settle its arrears totaling P3.44 billion in additional remittances from last year, as well as unpaid dividends from 2012 to 2015, the Department of Finance (DoF) said on Friday.
In a statement, the Finance department said the power company has committed to remit P472 million more in dividend remittances for 2016 and P2.97 billion in arrears covering 2012 to 2015 payable in five years.
According to the DoF Corporate Affairs Group, the NPC has agreed to remit P594 million per year, starting in third quarter of 2017 and settle its unpaid dividends from 2012 to 2015 totaling P2.97 billion.
The amounts are on top of the regular dividends falling due in the coming years, the Finance department said.
The P3.44 billion in additional revenue from the NPC dividends will be spent on social and infrastructure projects, Finance Undersecretary Antonette Tionko said.
In May, the NPC remitted P333 million to the national government.
“We told the NPC that even if we collect they will still be left with sufficient cash for their operations,” Tionko said.
Finance Secretary Carlos Dominguez 3rd said earlier that the DoF targeted to collect a P114 billion in arrears from government-owned and -controlled corporations (GOCCs), including the NPC, the Power Sector Assets and Liabilities Management Corp. (Psalm) and the Philippine Deposit Insurance Corp. (PDIC).
The bulk of the arrears were due from five state-run firms, namely, the PDIC with unpaid dividends of P46.5 billion; Psalm with P29.87 billion; NPC with P20.66 billion; Philippine Charity Sweepstakes Office (PCSO) with P6.89 billion; and the Civil Aviation Authority of the Philippines (CAAP) with P6.31 billion.
Under Republic Act 7656, GOCCs are required to declare their annual income after tax and other deductions, and remit 50 percent of net income to the Bureau of the Treasury.
“There are arrears with PDIC, PSALM, NPC, PCSO and CAAP. But, fortunately, we are making progress in these dividends,” Dominguez said.
Dominguez said GOCCs with unpaid dividends have cited legal concerns and poor collections the kept them from paying their dues on time.
“Many of these have to do with legal discussions and some of them have to do with the fact that the collections of PSALM, for instance, are quite low. So they have a lot of receivables and they haven’t moved as quickly as they should have,” he said.
As of the end of May, the national coffers received P18.34 billion in total remittances from the Development Bank of the Philippines, Philippine Ports Authority, Philippine National Oil Co., Manila International Airport Authority, Philippine Amusement and Gaming Corp., Philippine Economic Zone Authority, and Clark Development Corp. The amount represented dividends from net earnings last year.