CLARK FREEPORT, Pampanga—The Clark International Airport Corp. has remitted over P38.1 million in dividends to the Bureau of Treasury and its stockholders after three years in the red.
Alexander Cauguiran, CIAC president, said the dividends represent the years 2014 and 2015 where CDC incurred a deficit or negative retained earnings.
Cauguiran said that CIAC is now remitting 50 percent dividends to the government after annual earning of P76.35 million.
“We are attributing the earning or cash flow to the increase of airline companies in Clark, which now total 134 international and 104 domestic flights, and we’re expecting that passenger traffic will reach 1.5 million by the end of 2017,” he said.
Under Section 3 of Republic Act 7656, all government controlled or owned corporations are required to declare at least 50 percent of their annual net income as cash, stock, or dividends to the national government.
However, Cauguiran said CIAC was not able to do so from 2014 to 2016 as it incurred retained earnings deficit.
He said the revised implementing rules of RA 7656 stipulate that GOCCs with net income but have negative retained earnings may be exempted from declaring remittance following a proper request to the Secretary of Finance.
CIAC’s net income in 2014 reached P45.5 million, P29.7 million for 2015, and P77 million for 2016, for a total of P152.7 million, Cauguiran added.
Earlier this year, President Rodrigo Duterte, in the name of efficiency, signed Executive Order No. 14 bringing back the CIAC into the fold of the Bases Conversion and Development Authority.
Signed on Tuesday, February 28, the EO basically overturns an order signed by former President Benigno Aquino III in 2011, which placed CIAC under the Department of Transportation and Communication (now the Department of Transportation or DOTr).