BSP set to remit P14.2B to NG

By Lawrence Agcaoili (The Philippine Star) Updated December 19, 2010

MANILA, Philippines - The Bangko Sentral ng Pilipinas (BSP) is set to remit P14.2 billion to the National Government (NG) early next year representing unpaid dividends for 2003 to 2006 as well as the remaining unpaid dividends for its earnings last year.

BSP Gov. Amando Tetangco Jr. announced during the launching of the “New Generation Philippine Currency” that the central bank would remit P9.312 billion to the Bureau of Treasury representing the disputed dividends for the period 2003 to 2006 in January.

“And since National Treasurer Roberto Tan is here with us, I also wish to volunteer another bit of good news: the Bangko Sentral is ready to remit to the National Government dividends and taxes worth P14.2 billion in 2011. Of this amount, Bangko Sentral is ready to remit P9.312 billion by January 2011… representing additional dividends for 2003 to 2006,” Tetangco stressed.

The Senate Committee on Finance earlier conducted an inquiry on the findings of the Commission on Audit (COA) about the alleged failure of the BSP to pay P16 billion in additional dividends to the National Government for the years 2003 to 2006. The BSP reiterated it has already filed an appeal with COA last May regarding the alleged unpaid dividends.

He pointed out that the amount of disputed unremitted dividends was settled after a meeting initiated by Sen. Franklin Drilon who heads the committee on finance of the Senate that was attended by Finance Secretary Cesar Purisima, Budget Secretary Florencio Abad, and COA chairman Reynaldo Villar.

Furthermore, Tetangco said the BSP would also remit another P4 billion representing the remaining dividends for its 2009 earnings.

“In addition, the BSP will remit at least P4 billion more in dividends and additional taxes to the National Government…. subject to the completion of COA’s audit of our 2009 operations…representing the remaining 50 percent of our estimated 2009 income,” the BSP chief added.

Last July, the BSP remitted P4.475 billion as well as P450 million in property dividends to the National Government during its 17th anniversary celebration.

Based on its unaudited financial statement, the BSP’s net income reached about P13.16 billion last year or about 47 percent higher than the P8.93 billion it earned in 2008. The amount of dividends to be remitted by the BSP to the National Government grew by more than 46 percent this year after the central bank posted higher earnings.

The central bank would remit about P9.8 billion worth of dividends to the National Government for its 2009 earnings or about P3.1 billion higher than the P6.7 billion it remitted last year for its 2008 earnings. The amount of dividends for 2009 earnings would be the second biggest with the highest being the P10.1 billion dividends declared in 1997.

The BSP has declared P59.5 billion worth of dividends in favor of the national government since it was created in 1993 and paid more than P50 billion in taxes over the past 11 years.

The central bank continued to remit dividends religiously despite the failure of the national government to complete its P50 billion capital infusion to the BSP.

The BSP was back in the red after booking a huge foreign exchange loss of P34.4 billion in the first half of the year in light of the sharp appreciation of the peso against the US dollar. The BSP’s foreign exchange losses from January to June this year was more than 42 times the P790 million losses it booked in the same period last year due to the volatile foreign exchange market.

The BSP recorded a net loss of P17.43 billion in the first six months of the year due to the huge foreign exchange losses, a complete reversal of the P3.09 billion net income it booked in the same period last year.