CLARK FREEPORT- The Clark Development Corporation (CDC) has attained steady net income since 1999 up to 2009, CDC president Benigno Ricafort said Thursday.

Ricafort said it is contrary to reports that CDC is a "losing" Government Owned Controlled Corporation (GOCC), together with the Subic Bay Metropolitan Authority.

Updates on President Benigno Aquino III's presidency

But in a statement sent to Sun.Star Pampanga, Ricafort was quoted as saying: "The CDC has been in the 'black' or has attained a steady net income since 1999 up to 2009, based on audited figures by the Commission on Audit (COA) compared to 1998 where it posted a net loss of P96 million."

Based on the comparative audited income statements obtained by Sun.Star Pampanga, except for 1998, in the 12-year period to 2009, the income of CDC posted positive results, highlighted by P147.8 million in 2006 and P276 million in 2008, under the leadership of 2007 CDC president Levy Laus and Ricafort.

An increased investor-locator confidence was noted during Laus's term, and was boosted by Ricafort when he took CDC's helm, making Clark a full blown business and industry haven.

"The highest income was in 2008, where the CDC achieved a net income of P276 million. As of December 31, 2009, the accumulated retained earnings of CDC was at P640 million, compared to the deficit level of P19 million as of December 31, 1998," Ricafort's statement said.

Ricafort also belied reports that "CDC has not been receiving any subsidy from the BCDA (Bases Conversion Development Authority) since 2003."

"On the other hand, dividends due to BCDA are being withheld as required by the negative covenant conditions of Deutsche Bank, German Bank which extended the loan for the purchase of the Radar System at CIAC (Clark International Airport Corporation) amounting to US$9,987,302. The loan was undertaken and arranged by CDC."

Ricafort also said since CIAC was demerged from CDC in October 2003, cash advances to the CIAC amounted to P861 million as of December 31, 2009.

"These advances were used by CIAC to finance shortfalls in its operations, loan-related expenses and other capital expenditures," Ricafort said.

"Overall, therefore, CDC's profitability and financial position is very healthy," he added. (Jovi T. De Leon)