Pagcor chairman and chief executive officer Cristino Naguiat INQUIRER file photo
MANILA, Philippines — The Philippine Amusement and Gaming Corp. has been asked by the Department of Finance to remit to state coffers P5.8 billion worth of unpaid dividends during the term of President Gloria Macapagal-Arroyo.
The unpaid dividends covered the period 2005 to 2010.
Cristino Naguiat Jr., president and chair of Pagcor, said in a press briefing Monday that the state-owned firm would pay the liabilities. However, he said the corporation would first check the accuracy of the amount demanded from them.
“I’m not sure if we [Pagcor] can pay it in full in one tranche. Perhaps we can settle it within two to three years,” Naguiat said.
He said Pagcor might have failed to remit dividends annually to the Bureau of the Treasury in the few years prior to the Aquino administration.
“I was not yet the head of Pagcor during that time. I will ask our accounting department to reconcile figures [with the DOF],” he said.
Government-owned and –controlled corporations are required by law to remit at least half of their income to the national government as dividends.
Naguiat said, Pagcor, which has been tasked by law to operate its own casinos and regulate privately owned ones, earned P3 billion in net income in 2013. This was up from the P2.8 billion registered in 2012.
At least half of last year’s net income would be remitted as dividends for 2013, Naguiat said, while the rest could be used to partly settle the unpaid liabilities for 2005 to 2010.
He expressed confidence the state-owned firm could remit its entire P3-billion net income to the state coffers and afford not to have retained earnings.
This is on account of a favorable outlook on the gaming industry that is expected to boost the sector’s revenues.
Investment bank Credit Suisse earlier published a report saying the Philippine gaming industry would surpass that of Singapore by 2018.
It expects Philippine gaming industry revenues to post an annual compounded growth rate of 28 percent up to 2018.
Naguiat said usually, the performance of the gaming industry would be significantly influenced by that of the overall economy. The positive outlook on the Philippine economy, therefore, supports projections that the gaming industry’s revenues would grow substantially over the medium term.
The government expects the Philippine economy to grow between 6.5 and 7.5 percent this year, and by at least 7 percent in the next few years. At such growth rates, the Philippines is expected to remain as one of the fastest-growing economies in Asia.