Gatchalian mulls Senate probe on unremitted PSALM dividends

Sen. Sherwin Gatchalian is considering a probe into the Power Sector Assets and Liabilities Management Corp.’s failure to remit dividends to government amounting to P27.28 billion.

The amount in question covers a decade of remittance to government.

PSALM is the government-owned and controlled corporation tasked with the management and privatization of energy assets inherited from the National Power Corp. (NPC).

Under Republic Act 7656, PSALM is mandated to declare and remit at least 50 percent of its annual net earnings as cash, stock, or property dividends to the Bureau of Treasury.

“PSALM must provide a detailed accounting of its liabilities to the national government and give a satisfactory explanation as to why it has not complied with its clear-cut responsibilities under the law for more than a decade now,” said Gatchalian, who chairs the Senate Committee on Energy.

PSALM has yet to comment on the issue as of press time.

In PSALM’s 2015 Annual Audit Report, the Commission on Audit (COA) revealed the state-run agency had only remitted P2.11 billion from 2004 to 2015 despite declaring net earnings of P58.78 billion over the same period.

Gatchalian said the 93-percent shortfall in expected remittances must be investigated to uncover potential liabilities for poor corporate management or even malversation and corruption.

“We need to get to the bottom of this questionable misplacement of funds so that we can recover this money and have it delivered to its rightful place within the National Treasury,” the lawmaker said.