SBMA turns over P185M in dividends to gov’t

State-owned  Subic Bay Metropolitan Authority (SBMA) has remitted P185 million in dividends to the national government—the first time in about a decade.

The amount remitted by SBMA was also the highest among the freeports and economic zones in the country, SBMA chair Roberto Garcia said in a statement issued on Friday.

Garcia explained that, from 2004 until 2013, the SBMA suffered financial losses and was unable to remit dividends. By undertaking major financial and operational restructuring over the last three years, the SBMA finally managed to recover.

According to data provided by the SBMA, the agency first complied with the dividends requirement in 1993 by remitting P5.23 million from its net earnings. In 2003, the SBMA remitted P75.6 million from the net earnings registered between 2000 and 2003. This was the result of the government’s decision to adjust the required dividends from 50 percent to only 10 percent of the net earnings of government-owned and -controlled corporations (GOCCs) generating very low profits.

Among the 50 GOCCs that remitted dividends to the government, the SBMA ranked 10th, topping eight other free ports and special economic zones, including Clark Development Corp., which remitted P110 million.

Citing reports from the Department of Finance, the SBMA said this year’s top contributors were the Philippine Amusement and Gaming Corp. (Pagcor), which remitted P9.791 billion, and Land Bank of the Philippines, with P6.298 billion.

Under Republic Act 7656, GOCCs are required to declare and remit 50 percent of their profits to the National Treasury as dividends. The government then uses the funds for its social services programs.