State-run Clark Development Corp. is set to remit more than P300 million in dividends to its mother company, the Bases Conversion and Development Authority (BCDA).
In a statement, CDC chairman and officer-in-charge Eduardo Oban Jr. said the state-run firm is now capable of paying its remittances for 2009 to 2011 to the BCDA after the management decided to forego construction work of the proposed corporate building.
The planned CDC building was aimed at consolidating all CDC offices and recreational facilities.
“In fact, we have requested the BCDA to extend the deadline for our remittances since we are expecting more capital expenditures in the future. But since we will forego construction work of the proposed CDC corporate headquarters, we can now use the funds to pay our obligations to our mother company,” Oban explained.
CDC public relations department manager Angelo C. Lopez, Jr. disclosed that in February 2012, the CDC turned over dividends amounting to P100 million to the Bureau of the Treasury (BTr) of the Department of Finance.
The remittance of dividends is in compliance with Republic Act 7656, which requires government-owned or -controlled corporation to declare and remit at least 50 percent of their annual net income to the national treasury.
On Jan. 27, 2012, the CDC Board approved the remittance of 50 percent of the expected P200-million profit made in 2011.