Gatchalian calls for investigation on PSALM remitted dividends

gatchalian-calls-for-investigation-on-psalm-remitted-dividends

Senator Sherwin Gatchalian is calling for an investigation on Power Sector Assets and Liabilities Management Corp. (PSALM) and its failure to remit dividends to the government.

The amount in question reached P27.28 billion, covering a decade of remittance to the government.

“PSALM must provide a detailed accounting of its liabilities to the national government and give a satisfactory explanation as to why it has not complied with its clear-cut responsibilities under the law for more than a decade now,” Gatchalian said.

The company is mandated to declare and remit at least 50 percent of its annual net earnings as cash, stock, or property dividends to the Bureau of Treasury.

In its 2015 Annual Audit Report, PSALM had only remitted 2.11 billion from 2004 to 2015 despite a declaration of net earnings of P58.78 billion in the same period, the Commission on Audit (COA) reported.

The 93 percent shortfall in expected remittances must be investigated to reveal potential liabilities for poor corporate management – including corruption.

“We need to get to the bottom of this questionable misplacement of funds so that we can recover this money and have it delivered to its rightful place within the National Treasury,” the chair of the Senate Committee on Energy said.

PSALM is a government-owned and controlled corporation that manages and privatizes energy assets inherited from the National Power Corp. (NPC).

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