ADJUSTING THE DIVIDEND RATES OF SELECTED GOVERNMENT OWNED AND/OR CONTROLLED CORPORATIONS ON THEIR 1994 EARNINGS PURSUANT TO SECTION 5 OF REPUBLIC ACT NO. 7656

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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 (NG)
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 (NG).”

WHEREAS, to support the viability and
mandate of the government owned and/or controlled corporations (GOCCs), the
liquidity, retained earnings position and medium-term plan and programs of
these GOCCs were considered in the determination of the reasonable dividend
rates of such corporations on their 1994 net earnings;

WHEREAS, pursuant to Section 5 of RA
7656, the Secretary of Finance recommended the adjustment on the percentage of
annual net earnings that shall be declared by various government owned and/or
controlled corporations in the interest of national economy and general
welfare.

NOW, THEREFORE, I, FIDEL V. RAMOS,
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 following government owned and/or controlled
corporations as dividends to the National Government (NG) as provided for under
Section 3 of Republic Act No. 7656 is adjusted from at least fifty percent
(50%) to the rates specified therein:

In the case of Philippine National Oil Company
(PNOC), a 50% dividend rate should be applied on its net earnings after
deducting the remittance made to NG from the PETRON privatization proceeds
equivalent to 50% thereof under Executive Order No. 37; provided further that said
dividend should be paid in cash.

SEC. 2. The adjusted dividend rates
provided for under Section 1 are only applicable on 1994 net earnings of the
concerned government owned and/or controlled corporations.

SEC. 3. This Executive Order shall take
effect immediately.

DONE in the City of Manila, this 14th day
of July, in the year of Our Lord, Nineteen Hundred and Ninety-Five.

(Sgd.) FIDEL V. RAMOS
President of the Philippines

By the
President:

(Sgd.) RUBEN
D. TORRES
Executive Secretary

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