MANILA - The National Transmission Corp (Transco) is eyeing remitting all of its 2020 net earnings as dividends to the Bureau of Treasury to help fund the country's fight against COVID-19, the Department of Finance said Tuesday.
Transco will secure approval from its board to comply with Finance Secretary Carlos Dominguez III's directive on increasing dividend remittance for 2020 to 75 percent of its net earnings, the DOF said citing a letter from Transco president-CEO Melvin Matibag.
“Transco supports the DOF in its revenue generation efforts for the government’s programs to alleviate the impact of the COVID-19 pandemic, and in fact, it is exploring the possibility of remitting 100 percent from the 2020 net earnings,” said Matibag in his letter to the Finance Secretary.
Matibag said once board approval is secured, Transco would request for the approval of the additional budget from the Department of Budget and Management to support the dividend remittance to the national government.
Transco earlier remitted to the Bureau of Treasury P8.32 billion or 50 percent of its net earnings from 2016 to 2019, the DOF said.
For 2020, its dividend remittance is at P1.63 billion when computed at 50 percent, the agency said.
All government-owned and -controlled corporations (GOCCs) are mandated by law to declare and remit at least 50 percent of annual net earnings as cash, stock or property dividend to the national government.
From January to May 31, the total remittances of GOCCs reached P31.38 billion, the DOF said.
Transco owns the country's power grip, while the National Grid Corporation of the Philippines, a private company operates the grid under a government franchise.