State-run National Transmission Corporation (TransCo) has topped the list of government-owned and controlled corporation (GOCCs) in terms of heftiest remittance to the national government with its P8.32 billion worth of dividends.
The company said its dividend turnover to the national treasury represented 50-percent of its earnings within the 2016 to 2019 period.
Beyond the amount already handed over to the national treasury, the Department of Energy (DOE) divulged that TransCo is also “exploring the possibility of committing an additional amount of P1.6 billion in the coming months.”
The remittance of funds to the State coffers by the GOCCs is sanctioned under Republic Act 7656, which require these government-owned entities to remit at least 50-percent of their income as dividends.
With that scale of dividend contribution, it was emphasized that TransCo was able to beat other state-run firms and agencies, such as the Philippine Deposit Insurance Corporation (PDIC) with P7.1 billion dividends; and Philippine Ports Authority (PPA) with P3.541 billion turnover to the national government.
Atty Melvin Matibag, president and CEO of TransCo, said “we are just doing our part to help our government address the needs of the people in this time of crisis.”
The dividend-remittances of GOCCs, including TransCo, hovered at P21.44 billion, according to a report issued by the Department of Finance.
Matibag emphasized that the dividend share of TransCo, “helped secure the resources for the important infrastructure projects of the government,” which has been packaged under the Build, Build, Build economic development paradigm of the country.
Energy Secretary Alfonso G. Cusi said the dividends remitted by TransCo to the national government are imperative for the completion of a number of infrastructure projects lined up by the Duterte administration.
“Infrastructure projects are key drivers toward economic recovery and resiliency…TransCo’s income share will help cover the resources needed for government’s social amelioration efforts,” the energy chief said.
Matibag indicated that the company has also been “proactive in supporting the battle against Covid-19 and has realigned its corporate budget to provide immediate financial assistance to government hospitals in Quezon City and the Philippine Red Cross,” especially at the height of the enhanced community quarantine (ECQ) last year.
That was in addition to the relief efforts carried out by the state-run firm, including actions taken to help locally stranded individuals (LSIs) to get back to their home-cities or provinces.