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PRESIDENT Arroyo said on Tuesday that the government’s
“successful and complete exit” from the Philippine
National Bank (PNB) with the sale of its remaining stake
worth P4.24 billion proves the viability of its
privatization program.
In a
speech shortly before she rang the bell for the PNB’s
listing ceremony at the Philippine Stock Exchange in
Makati City, the President also affirmed the
government’s commitment to attain a balanced budget next
year, which she said would be partly aided by an
accelerated privatization program.
The
government is proud of the outcome of its P6.1-billion,
six-year financial rehabilitation of the PNB, noting
that not a single centavo was lost, even as the national
coffers stand to gain P350 million in dividends as the
rescue drew to a close.
Officials said Finance Secretary Margarito Teves backed
the remittance of dividends generated by the involvement
of the Philippine Deposit Insurance Corp. (PDIC) in the
bank’s full financial recovery.
PNB came
out of rehabilitation in June, and paid in full its dues
to PDIC four years ahead of the original 10-year
program.
“Finance
Secretary Margarito Teves has recommended the remittance
of P350 million as advance dividends to the national
treasury after the successful offering of PNB shares. .
. in response to the memorandum of President Arroyo to
all government-owned and -controlled corporations and
government financial institutions to advance their
dividend payments to the national treasury this year to
support the government’s fiscal consolidation program,”
PDIC executive vice president Cristina Q. Orbeta said in
a statement sent by e-mail.
At the
PNB listing ceremony, the President said, “This is a
successful and complete exit by the national government.
This exit affirms the soundness of the government’s
policy to uphold the private sector as the primary
engine of national growth. PNB’s successful
rehabilitation and full privatization overturn the
cynic’s view that privatized companies are white
elephants,” the President said.
Mrs.
Arroyo cited as further proof of her statement the fact
that “privatized firms are now turning in neat profits
while providing crucial services such as Manila Water,
Maynilad and PNOC-EDC.”
She said
the government will earn P4.24 billion from the
transaction, P1.4 billion more than the value last year,
and used this figure as a springboard for the
government’s pledge to stick to its targeted
zero-deficit next year.
As
concerned agencies improve tax-collection efficiency,
the government is “accelerating privatization,” she
added.
“Our
strategy is working. From EDC to PNB, we are among the
best values in Asia,” she said.
Other
steps, she said, include “reorganization while tapping
career officials to bypass the learning curve,”
apparently referring to her decision to tap Bureau of
Internal Revenue Commissioner Lilian Hefti as BIR
officer in charge, instead of hiring someone from
outside the BIR to take over the vacancy left by Jose
Mario Buńag.
The
President also cited the government’s “more aggressive
pursuit of tax-evasion cases.”
Meanwhile, in lauding PNB, among the biggest commercial
lenders in the country, PDIC’s Orbeta praised its full
observance of all governance and other performance
parameters while the rehabilitation was in place.
“The
faithful compliance of all parties with their respective
commitments, proper disclosure and prudent monitoring of
the bank’s financial performance and viability, and a
professional management team were key to PNB’s
successful rehabilitation,” Orbeta said.
“The
bank has steadily gained financial strength since then,
enabling it to fully pay its P6.1-billion loan to the
PDIC in June this year, four years ahead of the
scheduled maturity date.
“Moreover, the value of shares appreciated by close to
50 percent from a par value of P40 per share to public
offer sale price of P59 per share,” she added.
Orbeta
meant the increase in the value of PNB shares by the
time these were sold to the public, allowing the
government to benefit from the price increase.
The
recently concluded sale involved PDIC’s remaining
9-percent stake and the NG’s 3-percent stake in PNB of
P3.2 billion and P1.0 billion, respectively.
Proceeds
from the sale contributed positively to the government’s
fiscal position by way of direct gains from the sale of
NG shares, as well as taxes and dividends from the sale
of PDIC’s shares.
It also
signaled the government’s final exit from the bank,
reinforcing government’s privatization efforts, Orbeta
said. |
