PAGCOR’s P12B remittance to augment gov’t’s COVID-19 response fund

March 20, 2020

THE Philippine Amusement and Gaming Corporation (PAGCOR) has earmarked P12 billion for remittance to the National Treasury on March 24, 2020, as the government heightens its revenue generation efforts to cushion the economic impact of the Novel Corona Virus-2019 (COVID-19) in the country.

The amount, which comprises the agency’s 2019 cash dividends, is P5.67 billion higher than the P6.33 billion dividends that PAGCOR is required to remit, based on the agency’s 2019 financial report.

In 2019, PAGCOR recorded P75.75 billion in gaming revenues.

Pursuant to Republic Act 7656, government-owned and controlled corporations (GOCCs) like PAGCOR are required to remit at least 50% of their annual net earnings  as cash, stock or property dividends  to the national government.

PAGCOR Chairman and CEO Andrea Domingo said that with the P12 billion remittance, the agency’s 2019 cash dividends will be 44.74% higher than the required 50% annual net earnings of the agency.

“As one of the government’s biggest revenue generators, PAGCOR has always been trying to exceed its past achievements. While this is not an easy feat, we will always do our best to respond to our mandate and call of duty. We support the President’s war against COVID-19,” she said.

From 2011 to 2018, PAGCOR has already remitted a total of P33.33 billion cash dividends to the National Treasury, which solidified the state-run gaming agency’s standing in the GOCC Elite Circle or the Billionaires’ Club. These are the agencies that remit at least P1 billion cash dividends annually to the government.

In a letter to PAGCOR, Finance Secretary Carlos Dominguez said PAGCOR’s P12 billion remittance will “make a substantial contribution to the efforts of the national government to cushion the impact of severe drop in government revenues, brought about by the slowdown in business activities due to measures taken to contain the spread of COVID-19.”

Aside from the P12 billion cash dividends, PAGCOR has earlier donated total of P2.5 billion to the national government to help curb the transmission COVID-19 in the country.