MALACAÃANG
MANILA
BY THE PRESIDENT OF THE PHILIPPINES
EXECUTIVE ORDER NO. 289
AMENDING EXECUTIVE ORDER NUMBERS 183 AND 246 AND PROVIDING FOR THE ADJUSTMENT IN THE DIVIDEND RATE OF THE PHILIPPINE PORTS AUTHORITY AND THE DEVELOPMENT BANK OF THE PHILIPPINES ON THEIR 1999 NET EARNINGS PURSUANT TO SECTION 5 OF REPUBLIC ACT NO. 7656
WHEREAS, Section 1 of Republic Act No. 7656 provides that:
“Section 1. Declaration of Policy. It is hereby declared the policy of the State that in order for the National Government to realize additional revenues, government-owned and/or controlled corporations, without impairing their viability and the purposes for which they have been established, shall share a substantial amount of their net earnings to the National Government.”
WHEREAS, Section 5 of RA 7656 provides that:
“Section 5. Flexible Clause. In the interest of national economy and general welfare the percentage of annual net earnings that shall be declared by a government-owned and/or controlled corporation may be adjusted by the President of the Philippines upon recommendation by the Secretary of Finance.”
WHEREAS, Executive Order No. 183 was issued on 10 December 1999 providing for the adjustment in the dividend rate of the Philippine Ports Authority from fifty percent (50%) to fifteen percent (15%) on its 1999 net earnings.
WHEREAS, Executive Order No. 226 was issued on 03 April 2000 providing for the adjustment in the dividend rate of the Development Bank of the Philippines from fifty percent (50%) to ten percent (10%) on its 1999 net earnings.
WHEREAS, Executive Order No. 246 was issued on 20 May 2000 amending Executive Order No. 226 and providing for the adjustment in the dividend rate of the Development Bank of the Philippines from ten percent (10%) to thirteen percent (13%) on its 1999 net earnings equivalent to an amount not lower than P233M.
WHEREAS, in order to raise additional revenue for the National Government, there is a need for PPA and the DBP to remit additional dividends to the Bureau of the Treasury.
NOW, THEREFORE, I, JOSEPH EJERCITO ESTRADA, President of the Philippines, by virtue of the powers vested in me by law, do hereby order:
SECTION 1. The percentage of net earnings to be declared and remitted by the PPA as provided in Executive Order No. 183 is adjusted from fifteen percent (15%) to fifty percent (50%) provided that total remittance of PPA should not be lower than Six Hundred Eleven Million Pesos (P611 M).
SEC. 2. The percentage of net earnings to be declared and remitted by the DBP as provided in Executive Order No. 246 is adjusted from thirteen percent (13%) to thirty percent (30%) provided that total remittance of DBP should not be lower than Five Hundred Thirty Million Pesos (P530 M).
SEC. 3. The adjusted dividend rates provided for under Sections 1 and 2 hereof are only applicable on 1999 net earnings of the PPA and DBP.
SEC. 4. This Executive Order shall take effect immediately.
DONE in the City of Manila, this 22nd day of September, in the Year of Our Lord, Two Thousand.
(Sgd.) JOSEPH EJERCITO ESTRADA
By the President:
(Sgd.) RONALDO B. ZAMORA
Executive Secretary
Source: CDAsia
