Mandaue to check firm’s books-A A +A
Friday, March 1, 2013
THE Mandaue City Treasurer’s Office will look into the books of the company managing the Cebu International Convention Center (CICC).
Mandaue City Treasurer Regal Oliva said that based on the claims of the Office of the Acting Governor, the Philippine Exhibits and Theme Park Corp. (Petco) may have under-declared its revenues.
Lawyer Dara Acusar, spokesperson of Acting Cebu Gov. Agnes Magpale, said the Capitol paid Petco P3 million in 2012 for managing the CICC, which is located in the Mandaue City reclamation area.
Oliva said the company declared gross revenues of P1.25 million from CICC in the same year.
The city treasurer said they still have to investigate, but if they find that Petco has not been declaring its true revenues, they will send the company a notice of tax deficiency.
Oliva said he has not seen the CICC’s financial report since 2010.
In July 2011, after getting a demand letter from Mandaue City Hall, Petco secured a business permit and paid P100,000 in business taxes.
Sun.Star Cebu tried to contact CICC managing consultant Marisa Nallana and her staff for comment, but failed.
Acusar said the Provincial Board (PB) will also look into the contract between the Provincial Government and Petco. She said Petco’s contract with the Province, which was represented by Cebu Gov. Gwendolyn Garcia then, to manage CICCC did not have the PB’s approval.
She said the PB is yet to decide if it will approve the renewal of Petco’s contract with Capitol.
The PB reportedly plans to invite Petco officials when it deliberates on the renewal of the company’s contract.
Petco also manages the Cebu Cultural Center in Lahug, Cebu City.
Oliva said the CICC, and therefore Petco, should be earning. “They should declare earnings as we only get a discount of about 50 percent to use the facilities,” he added.
Acusar said CICC’s earnings were way below its expenses in 2011 and 2012.
She said that in 2011, CICC earned P14.07 million but spent P22.04 million. In 2012, it earned P13.17 million but its expenses reached P21.7 million.
Acusar said the CICC has its benefits but the Province is at a loss because of the convention center’s spending. Among the expenditures Acusar pointed out was CICC’s electricity bill of P10.18 million in 2012.
Sun.Star Cebu did not get a copy of the CICC’s financial reports for 2011 and 2012.
Meanwhile, Acusar said the Cebu Cultural Center is being considered as a venue for the Asian-Pacific Economic Cooperation summit in 2014.
The Department of Public Works and Highways, she said will fund the repair of the facility and has asked Capitol to submit a proposal.
Published in the Sun.Star Cebu newspaper on March 01, 2013.