DUTY Free Philippines Corporation (DFPC) and three other government failed to remit some P214.67 million in dividends due the national treasury as of yearend 2020.
A 642-page summary report released by the Commission on Audit last December 20 identified the three other state-owned firms with undeclared or unremitted dividends as the John Hay Management Corp. (JHMC), Philippine Aerospace Development Corporation (PADC), and Northern Luzon Pacific Coastal Services Inc. (NLPCSI).
Auditors said DFPC’s withholding of the P174.132 million profit share is a violation of RA 9593 of the Tourism Act of 2009 which requires turnover of said amount to the Department of Tourism.
The same report tagged JHMC for having failed to declare P27.217 million in unpaid dividends dating back to 2016.
Auditors said as of December 31, 2019, JHMC has excess cash of P115.5 million while it is the Bases Conversation and Development Authority (BCDA) that provide 100 percent of its corporate operating budget each year.
The COA also pointed out that the Department of Finance has ordered the remittance of P22.5 million unpaid dividends counting back to 2016.
On the other hand, auditors said the PADC had unremitted dividends totaling P13.176 million and NLPCSI owes the Bureau of Treasury P145,000.
Auditors said the action of the three government-owned or controlled corporations (GOCCs) was in conflict with RA 7656 or the GOCC Dividend Law, which requires said companies to turnover 50 percent cash dividend to the BTr.
