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Thursday, January 19, 2006
Council ratifies pact with CPA, ends settlement case on taxes
The Cebu City Council yesterday ratified without objections the P120-million compromise agreement that Mayor Tomas Osmeña entered into with the Cebu Port Authority (CPA).
The amount was for the “full, final and complete settlement” of the CPA’s realty taxes for 2005 and prior years.
Claims and counterclaims between the two parties are now put to rest with the ratification, as the council wanted the City Attorney’s Office to be guided by the provisions and submit the compromise agreement in court.
Vice Mayor Michael Rama stressed they have not been sitting on the matter.
He told the council that he attended the turnover of the P120-million check and the signing of the agreement between Osmeña and CPA General Manager Mariano Martinez before President Arroyo last week.
But he clarified it was not to represent the City Council, and that his presence there should not be taken to mean that he already approved the agreement.
No one objected to the ratification, which was supported with a resolution authored by Councilor Sylvan Jakosalem. Councilors held a one-hour pre-session caucus to discuss the matter.
Amenable
Councilor Jocelyn Pesquera agreed with the compromise because nothing in it states that the City is waiving its right to tax CPA and collect penalties later.
Councilor Gerardo Carillo, for his part, said there was no need to include in the agreement that “taxes of succeeding years be subject for discussion.”
But Rama said the City Council could no longer amend the agreement, as this was already signed.
Councilor Hilario Davide III moved that they ask the City Attorney’s Office to furnish them copies of the pleadings it filed in court about the City’s case against CPA.
Pleadings
Pesquera said the council should read the pleadings first before the City lawyers submit a copy of the compromise in court.
CPA had offered P80 million as compromise settlement for its delinquent taxes for its properties. Osmeña had rejected the amount because he found it too small.
According to the City Treasurer’s Office, CPA is supposed to pay P297 million (P186 million in realty taxes and P111.5 million in interest).
The compromise agreement stated that the CPA, a government-owned and controlled corporation, shall pay the City Government P120 million as “full, final and complete” settlement of the realty taxes due for 2005 and prior years.
Both parties agreed that for the realty taxes due for 2006 and succeeding years, the same shall be subject for discussion between the two entities.
The agreement, shall in no way, “prevent the parties from raising legal issues, which may have been raised in the aforesaid cases in the determination of the realty taxes for 2006 and succeeding years.” (GAC)
For Bisaya stories from Cebu. Click here. (January 19, 2006 issue)
Write letter to the editor.Click here.
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