Ports authority remits P3.541B in dividends to national gov't to support pandemic response

The Philippine Ports Authority (PPA) has remitted to the national government P3.541 billion in dividends in bid to boost the national coffer’s capacity to respond to the COVID-19 pandemic.

In a statement on Thursday, PPA general manager Jay Daniel Santiago said the remitted dividends to the national government represents 56% of the agency’s net income in 2020.

Republic Act No. 7656 or Government-Owned and -Controlled Corporations (GOCC) Act mandates state-owned firms to declare and remit at least 50% of their annual net earnings as cash, stock or property dividends to the national government.

“We anticipate that the fight against this global health emergency is a long and winding road. As a response, we are increasing our dividend to P3.541 billion representing 56% of PPA’s 2020 net income to help the government in its fight against COVID-19,” Santiago said.

“This is just one of the ways that the agency is looking at, with the guidance of Department of Transportation Secretary Arthur Tugade, as we continue to veer away from the clutches of COVID-19.”

For his part, Tugade said the hike in PPA’s dividend remittance will help enable the government to procure the needed doses of COVID-19 vaccines as well as provide assistance to the vulnerable sectors of society.

“These remitted amounts to the Bureau of the Treasury will help in the procurement of the life-saving vaccines, as well provide the most vulnerable sectors of society with aid and financial support,” Tugade said. 

For 2020, the PPA posted a net income of P6.138 billion, down 16% year-on-year due to the challenging trade and business environment amid the pandemic.

Nonetheless, PPA’s net income last year surpassed its target of P5.557 billion.

The PPA said it has also not remitted a dividend lower than P3.1 billion.

Since 2016, the Ports authority has been consistent as the top-performing DOTr agency and was able to remit a total of P17.171 billion in dividend to help in the implementation of various government social and health programs. 

The PPA also posted a total of P14.87 billion in income tax to the Bureau of Internal Revenue since 2016 --the biggest tax paid was recorded in 2018 at a total of P5.90 billion. —Ted Cordero/KBK, GMA News