(NAR) VOL. 11 NO.4 / OCT. – DEC. 2000
WHEREAS, Section 1 of Republic Act No. 7656 provides that:
“Section
1. Declaration of Policy. It is hereby declared the policy of the State
that in order for the National Government to realize additional
revenues, government-owned and/or controlled corporations, without
impairing their viability and the purposes for which they have been
established, shall share a substantial amount of there net earning to
the National Government.”
WHEREAS, to support the
viability and mandate of government owned and/or controlled
corporations (GOCCs) and the government financial institution (GFIs);
their liquidity, retained earnings position, capital position in real
terms and medium-term plans and programs were considered in the
determination of the reasonable dividend rates on the net earnings of
such corporations.
WHEREAS, pursuant to Section 5 of RA
7656, the Secretary Finance recommended the adjustment on the percentage
of annual net earnings that shall be declared by the Manila
International Airport Authority (MIAA), Public Estate Administration
(PEA) and Land Bank of the Philippines (LBP) in the interest of national
economy and general welfare.
NOW, THEREFORE, I, JOSEPH EJERCITO ESTRADA, President of the Philippines, by virtue of the powers vested in me by law, do hereby order:
SECTION 1.
The percentage of 1999 net earnings to be declared and remitted by the
MIAA, PEA and LBP as dividends to the National Government as provided
for under Section 3 of the Republic Act No. 7656 is adjusted from at
least fifty percent (50%) to at least the rates specified hereunder.
1. | Manila Internal Airport Authority (MIAA)
| 30% |
2. | Public Estates Authority (PEA)
| 20% |
3. | Land Bank of the Philippines (LBP) | 0% |
Provided,
however, that the dividend remittance of the MIAA and the PEA
corresponding to their 1999 earnings should not be less than Pesos Two
Hundred Fifty Five Million (P255M) and Pesos Six Million (P6M), respectively.
SEC. 2.
The percentages of dividend to be declared by the LBP on its 1996, 1997
and 1998 earnings are further adjusted from the rates specified under
Executive Order Numbers 227, 228 and 131 to the rates specified
hereunder:
1996 Net earnings
| 15.7% |
1997 Net earnings
| 9.7% |
1998 Net earnings | 0% |
Provided,
however, that the dividend remittances of LBP on its 1996 and 1997 net
earnings shall not be more than P465.44 and P446.56M to avoid the
impairment of the capital position of LBP in real terms.
SEC. 3. This Executive Order shall take effect immediately.
DONE in the City of Manila, this 27th day of September, in the Year of Our Lord, Two Thousand.
(Sgd.) JOSEPH EJERCITO ESTRADA
By the President:
(Sgd.) RONALDO B. ZAMORAExecutive Secretary