Transco will secure approval from its board to comply with Finance Secretary Carlos Dominguez III's directive on increasing dividend remittance for 2020 to 75 percent of its net earnings, the DOF said citing a letter from Transco president-CEO Melvin Matibag.
Matibag said once board approval is secured, Transco would request for the approval of the additional budget from the Department of Budget and Management to support the dividend remittance to the national government. Transco earlier remitted to the Bureau of Treasury P8.32 billion or 50 percent of its net earnings from 2016 to 2019, the DOF said.All government-owned and -controlled corporations are mandated by law to declare and remit at least 50 percent of annual net earnings as cash, stock or property dividend to the national government. Transco owns the country's power grip, while the National Grid Corporation of the Philippines, a private company operates the grid under a government franchise.