PSALM remits P46.07 million to 6 local governments
By Lenie Lectura -April 23, 2020
from Business Mirror
The Power Sector Assets and Liabilities Management Corp. (PSALM) said it has remitted SNW (Share in National Wealth) benefits amounting to P46.07 million to six local government units (LGUs).
PSALM directly releases the SNW to host LGUs as mandated by Sec. 66 of the Electric Power Industry Reform Act, pursuant to Article 10, Section 7 of the 1987 Constitution and Sections 289 to 294 of the Local Government Code.
The law requires that at least 80 precent of the SNW be utilized by recipient LGUs to lower the cost of electricity in their respective localities. Relevant provisions in the Local Government Code also allow LGUs discretion to use the SNW benefits for productive, developmental and welfare purposes.
“PSALM has fully remitted the amount of P46,077,239.87 as the Share in National Wealth for First Quarter 2020 to the LGUs hosting PSALM’s renewable power plants,” the state firm said Thursday.
Recipient LGUs were those in Benguet, Bukidnon, Laguna, Lanao del Norte, Lanao del Sur and Pangasinan.
“We did our best to process the releases immediately and we even coursed them through bank transfers in order for the LGUs to access the funds and perhaps utilize them for their Covid-19 [coronavirus disease 2019] response activities. The next quarterly release will be in July 2020,” said PSALM President and CEO Irene Besido-Garcia.
Per the Local Government Code of 1991, on top of the internal revenue allotment, an LGU is entitled to receive either 1 percent of the gross sales or receipts of the preceding calendar year, or 40 percent of the national wealth taxes, royalties, fees or charges derived by an entity engaged in the utilization and development of the national wealth, whichever is higher. The share is directly remitted to the provincial, city, municipal or barangay treasurer concerned.
