QuestionsQuestions (EXECUTIVE ORDER NO. 59)
EO No. 59 is issued pursuant to Section 5 of Republic Act (RA) No. 7656, which authorizes the President, upon recommendation of the Secretary of Finance, to adjust the percentage of net earnings to be declared and remitted by GOCCs.
RA No. 7656 requires all GOCCs to declare and remit at least fifty percent (50%) of their annual net earnings as cash, stock, or property dividends to the National Government.
The President may adjust the percentage of annual net earnings to be declared and remitted, upon the recommendation of the Secretary of Finance, in the interest of national economy and general welfare.
The Power Sector Assets and Liabilities Management Corporation (PSALM).
From at least 50% of annual net earnings, it is adjusted to 3.3030407% of net earnings for calendar years 2004, 2007, 2008, 2013, 2014, and 2015.
Section 1 sets the adjusted percentage for the stated years; Section 2 clarifies that the adjusted rate applies only to PSALM’s net earnings for those specific years.
It estimates an amount of P2.11 Billion.
To justify that reasonable dividend rates—lower than the general 50%—were determined by considering PSALM’s liquidity and capacity for debt servicing.
The Secretary of Finance must recommend the adjustment.
2004, 2007, 2008, 2013, 2014, and 2015.
No. EO No. 59 only adjusts the dividend rate for PSALM and only for the specific years stated; it does not indicate a universal or permanent change for other GOCCs or years.
The interest of national economy and general welfare.
It takes effect immediately upon issuance (dated July 25, 2018). Practically, this means the adjusted dividend rate can be applied without waiting for a delayed effectivity date.
It is signed by President Rodrigo Roa Duterte and countersigned by Executive Secretary Salvador C. Medialdea.