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| Clark International Airport is tagged as the country's most inefficient aerodome losing almost $20 million US every year , according to latest report from the Commission on Audit. |
Clark International Airport is operating on losses for
eight years now at P831.9 million, prompting the Commission on Audit to
alarm the airport’s officials in urging the Securities and Exchange
Commission (SEC) for a P2.5-billion increase in its capital stock.
Government auditors revealed in its 2010 report that the
international airport based in Pampanga province has suffered a streak
of losses from 2003.
“For the past eight years, [the airport] has suffered losses that resulted in the accumulation of deficit to P831.9 million as of December 31, 2010. The corporation’s business income has not been sufficient to cover its expenditures,” the report read.
COA though did not disclose the exact amount of losses for the eight years.
It added that the airport’s expenses for personal services in 2010, which had a 61-percent share in its income, “adversely affected” the airport’s financial condition and “greatly contributed to a negative cash flow from its operations.”
Initially, the airport is a subsidiary of the Clark Development Corp. (CDC) but on April 2008, it was transferred under the Bases Conversion and Development Authority (BCDA) by virtue of Executive Order 716.
On October 2003, all transactions of the airport were separated from CDC and it thrived through CDC’s contributions in the form of advances, transferred assets, and payment of loan amortizations for capital projects.
“The authorized capital stock of [Clark Airport] was only P20 million, which was inadequate to meet its requirements,” COA disclosed.
Because of that, the advances from CDC (P2.43 billion) and BCDA (P37 million) “could not be converted into equity.”
Airport officials have already asked the SEC for a P2.5-billion boost in its capital stock but it is still “pending with the SEC.”
State auditors recommended for the airport officials to follow up the SEC to facilitate the approval on the application for the increase in authorized capital stock.
They also asked the airport management to adopt cost-cutting measures, while working out for strategies to enhance revenue generation.
“For the past eight years, [the airport] has suffered losses that resulted in the accumulation of deficit to P831.9 million as of December 31, 2010. The corporation’s business income has not been sufficient to cover its expenditures,” the report read.
COA though did not disclose the exact amount of losses for the eight years.
It added that the airport’s expenses for personal services in 2010, which had a 61-percent share in its income, “adversely affected” the airport’s financial condition and “greatly contributed to a negative cash flow from its operations.”
Initially, the airport is a subsidiary of the Clark Development Corp. (CDC) but on April 2008, it was transferred under the Bases Conversion and Development Authority (BCDA) by virtue of Executive Order 716.
On October 2003, all transactions of the airport were separated from CDC and it thrived through CDC’s contributions in the form of advances, transferred assets, and payment of loan amortizations for capital projects.
“The authorized capital stock of [Clark Airport] was only P20 million, which was inadequate to meet its requirements,” COA disclosed.
Because of that, the advances from CDC (P2.43 billion) and BCDA (P37 million) “could not be converted into equity.”
Airport officials have already asked the SEC for a P2.5-billion boost in its capital stock but it is still “pending with the SEC.”
State auditors recommended for the airport officials to follow up the SEC to facilitate the approval on the application for the increase in authorized capital stock.
They also asked the airport management to adopt cost-cutting measures, while working out for strategies to enhance revenue generation.
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