Adjusting the Dividend Rate of Selected Government-Owned or -Controlled Corporations Pursuant to Section 5 of RA No. 7656

August 28, 2019

EXECUTIVE ORDER NO. 89

ADJUSTING THE DIVIDEND RATE OF SELECTED GOVERNMENT-OWNED OR -CONTROLLED CORPORATIONS PURSUANT TO SECTION 5 OF REPUBLIC ACT NO. 7656

WHEREAS, Republic Act (RA) No. 7656 requires all government-owned or -controlled corporations (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;

WHEREAS, RA No. 7656 provides that the President of the Philippines, upon the recommendation of the Secretary of Finance, may adjust the percentage of annual net earnings to be declared by a GOCC, in the interest of national economy and general welfare;

WHEREAS, to support the viability and mandate of the Land Bank of the Philippines (LBP) and the Development Bank of the Philippines (DBP), their liquidity, capital position, medium-term plans and programs were considered in the determination of their respective reasonable dividend rates on net earnings for selected years; and

WHEREAS, pursuant to RA No. 7656, the Secretary of Finance has recommended the downward adjustment of the percentage of the selected years' net earnings that shall be declared by the LBP and the DBP as dividends to the National Government, in the interest of national economy and general welfare; aScITE

NOW, THEREFORE, I, RODRIGO ROA DUTERTE, President of the Philippines, by virtue of the powers vested in me by the Constitution and existing laws, do hereby order:

SECTION 1. Adjustment of Dividend Rate. — Pursuant to Section 5 of RA No. 7656, the percentage of net earnings to be declared and remitted by the following GOCCs as dividends to the National Government for the years indicated below, is adjusted from at least fifty percent (50%) of their annual net earnings to the following rates:

 

GOCC	Year	Rate
1. Land Bank of the Philippines	2016	0%
2017	10%
2. Development Bank of the Philippines	2017	0%

 

SECTION 2. Coverage. — The adjusted dividend rates set forth in Section 1 of this Order are only applicable to the concerned GOCCs and the years stated above. DETACa

SECTION 3. Effectivity. — This Order shall take effect immediately.

DONE in the City of Manila, this 28th day of August, in the year of Our Lord, Two Thousand and Nineteen.

 

Published in the Official Gazette, Vol. 115, No. 42, p. 11617 on October 21, 2019.