Economy


Palace provides relief to NDC on 2015 dividends




Posted on August 10, 2017


PRESIDENT Rodrigo R. Duterte issued Executive Order (EO) No. 37 “adjusting downward” the dividend rate of the National Development Company (NDC) on its 2015 net earnings following the transfer of shares of an NDC-owned company to the government to settle its obligations.

The transfer of Semirara Mining and Power Corp.’s shares to the government was intended to pay for National Development Company’s “unremitted dividends” amounting to P2.11 billion as of Dec. 31, 2013, together with other obligations. -- BW FILE PHOTO
The NDC is an agency of the Department of Trade and Industry tasked to manage investment portfolios. Under Republic Act No. 7656, government-owned and -controlled corporations (GOCCs) are required to declare and remit at least 50% of their annual net earnings as cash, stock or property dividends to the state.

Approved by Mr. Duterte on Aug. 7, EO 37 authorized the reduction in percentage of net earnings to be declared and remitted by NDC as dividends to the national government, which is now adjusted downward to 1.0982% or an estimated P48.567 million for 2015.

The new EO said the adjustments were made upon the recommendation of the Secretary of Finance, who took into consideration “the transfer of 34,093,974 NDC-owned Semirara Mining and Power Corp. [SMPC] shares to the National Government in payment of various liabilities.”

“To support the viability and mandate of the NDC, its liquidity, retained earnings position and medium-term plans were considered in the determination of the reasonable dividend rates on its net earnings,” the document read in part.

“The adjusted dividend rate set forth is only applicable to the NDC and the year stated therein.”

According to NDC’s 2015 annual report, the transfer of SMPC’s shares to the government was intended to pay for NDC’s “unremitted dividends” amounting to P2.11 billion as of Dec. 31, 2013, together with other obligations.

NDC said a total of P2.015 billion was settled in 2015, representing dividends due from 1996 to 2014 net earnings, through the transfer of SMPC’s shares. -- Ian Nicolas P. Cigaral