RE UPDATES ON REPLENISHMENT OF FUNDS
FOR SETTLEMENT OF DAMA CLAIMS
09 June 2022
As of this date, the Power Sector Assets and Liabilities Management Corporation (PSALM) has already remitted a total amount of Four Billion Four Hundred Forty-Five Million Eight Hundred Eighty-Two Thousand Nine Hundred Ninety Pesos and 10/100 (PHP 4,445,882,990.10) to the National Power Corporation (NPC) for the settlement of the NPC-Drivers and Mechanics Association (DAMA) claims. The funding for the payment of any additional claims is readily available and may be remitted by PSALM to NPC once there is compliance by NPC of the guidelines issued under the DAMA Business Process approved by the PSALM Board of Directors.
There are delays in the release of DAMA claims because of the issue with the Government Service Insurance System (GSIS). On 02 June 2022, PSALM and NPC met with key officials of GSIS, led by President Rolando L. Macasaet, in order to explain the challenges faced by NPC as regards remittance of the contributions of the DAMA claimants and completing the required employment records. It was agreed that NPC would promptly submit to GSIS the employment data and other necessary records of the DAMA claimants so that GSIS can revisit its computations and review the penalties it seeks to impose on NPC. GSIS also expressed openness to PSALM’s suggestion for GSIS to already accept the statutory contributions coming from NPC, pending the determination of other charges and impositions. To this end, NPC was tasked to draft the appropriate documentation for this arrangement between GSIS and NPC. NPC would need reasonable time to prepare said documentation and to coordinate with GSIS.
We wish to remind all DAMA claimants that the role of PSALM is only to provide the funding needed to settle the DAMA claims in accordance with the Business Process. While the said Business Process provides for the standard handling time of NPC’s requests for remittance of additional funding, this is still subject to various factors such as the completeness of the supporting documents submitted by NPC and the proper liquidation of previous disbursements. Rest assured that PSALM strictly follows the Business Process and will not unnecessarily delay the remittance of funds for the payment of DAMA claims.
We reiterate that NPC, being the former employer of the DAMA claimants, will handle all aspects of the processing of claims, including the receipt and review of supporting documents and the actual release of the payments to the DAMA claimants. We urge all DAMA claimants to direct their questions regarding the settlement of their specific claims or the timing of the release of the claims to the NPC.
PSALM will issue the necessary supplemental or amendatory advisories should there be further updates, or if there are instructions that will be issued by the PSALM Board of Directors relative to this PSALM Advisory.
PSALM MANAGEMENT
PSALM cuts financial obligations by P195-billion under Duterte administration
The Power Sector Assets and Liabilities Management Corp. (PSALM) has trimmed by more than a third its financial obligations as of June 30, 2022, the last day of President Rodrigo Duterte in office. Financial obligations amounted to P538 billion before President Duterte assumed office in June 2016, or a hefty reduction of P195.4 billion by the end of the Duterte administration. Its financial obligation is now estimated at PHP342.6 billion....