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Bacolod City, Philippines Monday, March 20, 2006
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City will have to pay unpaid tax
if it takes over port, Monico says
BY CHRYSEE SAMILLANO

If the Bacolod City government is really bent on taking over the management and operation of the Bacolod port, it will have to assume the unpaid taxes of the Bacolod Real Estate Development Corp. with the government, Bacolod Rep. Monico Puentevella claimed yesterday.

He said he believes continued negotiation between BREDCO and the city is good, especially if both parties can come up with a win-win solution.

Puentevella said BREDCO has unpaid tax obligation running to hundreds of millions of pesos with the Bureau of Internal Revenue. Continued non-compliance by BREDCO with its tax obligation with the BIR would mean corresponding severe action under the law, he said. BIR promised to provide him with its report and assessment of BREDCO's outstanding tax obligation soon, he added.

Puentevella said the 10-point agenda of the administration calls for a more efficient and effective tax collection system. "If our government has been going after the likes of Richard Gomez, Regine Velasquez and Judy Ann Santos, I find no reason why BREDCO should be spared from paying its own liabilities," he said.

On the proposed takeover of the port operation and management, the city should also listen to the voice of the different sectors, particularly the businessmen, Puentevella said. He said the concerns raised over the city's decision to take over the operation of the port indicate the need to determine whether or not all legal and administrative avenues have been pursued and exhausted. The city should realize that if the matter is taken to the courts, the litigation can take many years, during which time, BREDCO will continue to manage the port, he said, a condition that might be disadvantageous to the city.

"I hope the city gets its rightful share as far as port rental is concerned, since the P1.4 million annual rental proposed by BREDCO is too low," Puentevella said.

Meanwhile, City Legal Officer Allan Zamora said Mayor Evelio Leonardia is asking the Sangguniang Panlungsod for an ordinance if it decides to take over the port operation so that when it does, there are already positions created.

Zamora was reacting to the letter of Councilor Ana Marie Palermo stating her reason for not signing the recommendation of the city negotiating panel to take over the port management and operation.

Palermo said the recommendation of endorsing to the SP for passage of an ordinance of take over may mean a request for approval from the SP for an act that is inherently executive in nature and a prerogative.

Should not the executive first propose the proper policy directions/guidelines for the takeover, considering that the option emanated from them? she asked.

Palermo said "we have seen through the years the exercise of governmental and corporate powers of the city through the City Mayor without going through the SP for approval or policy directions first in its implementation," citing the case of the Vendor's Plaza.

Zamora, however, said, "If you talk about a takeover, there should be a table of organization consisting of the people who will run the port operation, including their position. The only body in the city or even in other local government units that has authority to create a position is the SP and it would be illegal for the Mayor to create a position through an Executive Order".

If the SP will not create a position, who will run the port after the takeover? Zamora asked. "I believe Palermo understands that," he said.*CGS

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