Gov't wants more from GOCCs

MANILA, Philippines - The national government wants to get more revenues from state corporations.

In a statement on Wednesday, the Department of Finance (DOF) said it revised the implementing rules and regulations (IRR) of Republic Act (RA) 7656 regulating dividends remitted by government-owned and -controlled corporations (GOCCs).

Included in the revisions is the raising to "more than 50 percent" of annual net earnings the dividends remitted to the government.

This will apply "in cases of excess cash or windfall of revenues" of a GOCC, with respect to its viability to operate as a government institution.

"This will consolidate government funds and will prevent any excess or idle cash among GOCCs," the DOF said.

Previously, GOCCs and government financial institutions are only required to remit half of their yearly earnings as cash, stock, or property dividends.

The DOF regulates GOCCs' financial operations. The Governance Commission on GOCCs (GCG), meanwhile, oversees the over-all management of state firms.

The GCG was created under RA 10149, enacted in 2011, after President Aquino lambasted some GOCC officials for their huge bonuses despite poor performance.

Since then, the DOF said there has been a reversal in the way GOCCs conduct business.

It cited a 33.37-percent increase in dividends from 2010. Last year, GOCCs remitted P38.68 billion as against 2010's P29 billion.

"The revised IRR makes it simpler and easier to be a good GOCC. They should be encouraged to find that we are starting to expect more from them, owing to their good progress," finance secretary and GCG ex-officio member Cesar Purisima was quoted as saying.

Other revisions in the IRR include a specific schedule when GOCCs should remit part of their earnings every year. Before, no schedule has been provided.

Full payments must be made "on or before May 15," the statement said.

The DOF said revisions were a product of consultations with GOCCs themselves, GCG, the bureaus of the Treasury and Internal Revenue as well as the Commission on Audit.

"Good performance rests on good laws and regulatory environments. We look forward to seeing GOCC performance further improve," Purisima said.