NextGen Day

MANILA, Philippines — The Department of Finance (DOF) continues to enforce fiscal discipline on government-owned or controlled businesses (GOCCs), resulting in actual dividend remittances of PHP57.55 billion in 2021, which is 9.4 percent higher than the pre-pandemic collection of PHP52.59 billion in 2019.

The Land Bank of the Philippines (Landbank) and Development Bank of the Philippines (DBP), which retained their dividend contributions to continue boosting their capital requirements, are not included in the 2021 remittances, according to the DOF’s Corporate Affairs Group (CAG) report to Finance Secretary Carlos Dominguez III.

Total dividend collections for 2021 are PHP84.72 billion, up 22.5 percent from PHP69.17 billion in 2019. This includes dividend relief offered to select GOCCs such as Landbank and DBP.

Total dividend collections, including dividend relief, averaged PHP68.7 billion per year under the Duterte administration (July 2016-December 2021), more than double the level of the previous government (July 2010-June 2016), which only collected PHP27.5 billion per year on average.

The CAG’s Assistant Secretary Soledad Emilia Cruz said the GOCCs’ high level of compliance with Republic Act 7656, or the dividends law, was the result of the DOF’s ongoing efforts to ensure that even state-run firms with dividend deficiencies and arrears are able to remit through staggered remittance arrangements or other payment options that may be warranted.

GOCCs are obligated to submit at least 50% of their net earnings to the national government under the dividends law (NG).

By the end of the Duterte administration, Cruz estimates that the CAG will have collected at least PHP32 billion in dividend remittances from GOCCs.

The CAG, led by Finance Undersecretary Antonette Tionko, also checked the financial situation of GOCCs using the web-based GOCCs liability and monitoring system (GLAMS).

The GLAMS, formerly known as the GOCC Debt Reporting and Monitoring System (GDRAMS), was passed to the DOF by the Governance Commission for GOCCs (GCG) in July 2021 and reintroduced by CAG in August 2021 with additional functionality.

In 2021, Cruz stated that the CAG was successful in ensuring full compliance by the various government insurance institutions (GIIs) – the Social Security System (SSS), Government Service Insurance System (GSIS), and Philippine Health Insurance Corp. (PhilHealth) – with internationally accepted insurance accounting standards known as the Philippine Financial Reporting Standards (PFRS) 4 so that these entities can correctly report their social benefit liabilities.

PFRS 4 establishes principles for properly accounting for insurance contracts.

While full compliance with these criteria has no impact on the GIIs’ financial situation or stability, it will assist the government in making informed judgments and policies about them.

Dominguez praised the CAG for these and other achievements, saying that they should be continued and sustained by the next administration.

“Continuity is the most crucial element in these projects that we’ve all begun to ensure that they don’t just fade away, but are institutionalized, since you guys have done such a fantastic job,” Dominguez told the CAG.

The CAG also completed its responsibilities, which included analyzing the financial and fiscal impact of decoupling the functions of the Philippine Amusements and Gaming Corp. (PAGCOR); evaluating the borrowings and funding requirements of the Power Sector Assets and Liabilities Management Corp. (PSALM); PSALM drawing from the Malampaya fund for its stranded contract costs and stranded debts, rather than imposing a universal charge, as required by the Murang Kuryente Act; and

Save/Share this story with QR CODE

---

Disclaimer

This article is for informational purposes only and does not constitute endorsement of any specific technologies or methodologies and financial advice or endorsement of any specific products or services.

📩 Need to get in touch?

📩 Feel free to Contact NextGenDay.com for comments, suggestions, reviews, or anything else.

---

We appreciate your reading. 😊Simple Ways To Say Thanks & Support Us:
1.) ❤️GIVE A TIP. Send a small donation thru Paypal😊❤️
Your DONATION will be used to fund and maintain NEXTGENDAY.com
Subscribers in the Philippines can make donations to mobile number 0917 906 3081, thru GCash.
3.) 🛒 BUY or SIGN UP to our AFFILIATE PARTNERS.
4.) 👍 Give this news article a THUMBS UP, and Leave a Comment (at Least Five Words).

---

AFFILIATE PARTNERS

World Class Nutritional Supplements - Buy Highest Quality Products, Purest Most Healthy Ingredients, Direct to your Door! Up to 90% OFF.
Join LiveGood Today - A company created to satisfy the world's most demanding leaders and entrepreneurs, with the best compensation plan today.

---