Why, the NGCP executive wonders, did making money become so 'demonized'? | Inquirer News

Why, the NGCP executive wonders, did making money become so ‘demonized’?

GRID CORPORATION VP DEFENDS HIGH DIVIDENDS AS EARNINGS SHARED AMONG INVESTORS
By: - Reporter / @MAgerINQ
/ 11:30 AM May 25, 2023
NGCP assistant vice president Cynthia Alabanza

NGCP assistant vice president Cynthia Alabanza (File photo)

QUEZON CITY, Philippines – When did making money become so “demonized?”

National Grid Corporation of the Philippines (NGCP) assistant vice president Cynthia Alabanza aired her sentiment on Thursday after she found herself in the hot seat Wednesday when senators grilled her about the company’s alleged obscenely high dividend payments.

ADVERTISEMENT

Alabanza though stressed it is not a “fat paycheck” given to NGCP executives but an earning shared among its investors.

NGCP hit over execs’ fat pay amid project delays

FEATURED STORIES

“You know that fat paycheck I thought was a little bit unfair because industry-wise, we’re just at the level,” she said over ABS-CBN News Channel’s “Headstart” TV program.

“Second of all, I don’t know when making money became so demonized,” she said.

“Again, when you talk about dividends, if you look at the prevailing law, you’re not supposed to retain dividends. You’re supposed to give it out. In fact, you will be penalized if you retain dividends beyond your paid-up capital.”

“But is it really a fat paycheck? It isn’t. It’s earnings,” Alabanza insisted.

At a Senate hearing on Wednesday, NGCP disclosed that billions of pesos earnings of the company were divided among its shareholders.

The NGCP official had explained during the hearing that their profits “are taken from retained earnings which have accumulated over the years.”

On the company’s billion-peso dividends, Alabanza said it is also essential to look at their capital expenditures.

ADVERTISEMENT

“If you just take out a couple of zeros, you put in P300 and you earn, let’s say, a P180, this is not so bad. But you know the connotation of billions that makes it seem so unacceptable. But in proportion, this is not unusual,” she claimed during the interview.

“And it’s because you know we operated the transmission system as best as [possible]. We make it efficient and we have run the business in a way that we’ve made it profitable from that time that government had it prior to privatization,” she explained.

RELATED STORIES:

NGCP says sorry for delayed projects

Marcos: Gov’t to reclaim control of NGCP if necessary

APL/abc
Your subscription could not be saved. Please try again.
Your subscription has been successful.

Subscribe to our daily newsletter

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.

Read Next
Don't miss out on the latest news and information.

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

TAGS: dividends, Earnings, income, NGCP, Probe, Senate
For feedback, complaints, or inquiries, contact us.
Your subscription could not be saved. Please try again.
Your subscription has been successful.

Subscribe to our daily newsletter

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.



© Copyright 1997-2023 INQUIRER.net | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.