Wednesday, July 09, 2008 Lapu to garnish P663M airport funds
MACTAN-Cebu International Airport Authority (MCIAA) owes Lapu-Lapu City P662.8 million in real property taxes, said city treasurer Elenita Catagcatag.
If MCIAA doesn’t pay soon, the amount will further increase, she said during yesterday’s 888 News Forum at Waterfront Hotel.
City Administrator Teodulo Ybañez said MCIAA must pay now or they will be paying more in the future.
Lapu-Lapu City’s option is to garnish airport properties.
Assistant City Attorney Michael Dignos said MCIAA used to pay P3 million a month since 1991 when it became an international airport.
Dignos said MCIAA has stopped paying in 2003 and filed a case for injunction before the Regional Trial Court (RTC). This was denied for lack of merit. The MCIAA brought the case to the Court of Appeals (CA), which sustained the RTC decision.
MCIAA elevated the case to the Supreme Court, where it is pending.
Dignos said that though the airport is taxable on real property tax, they cannot levy on MCIAA’s real property, meaning they can’t sell it.
“What we are given as an option is to do garnishment on their personal properties as well,” Dignos.
He said they will not sell the airport through public auction even if MCIAA will not pay taxes because this is a vital facility, not only to Lapu-Lapu City but to the entire Cebu Province.
Attempt to sell
Records showed that the Lapu-Lapu City Government attempted to sell the airport properties in December 2003 to cover the unpaid taxes which, at that time, amounted to P237 million.
But the auction did not push through.
Based on records, the original tax obligation of MCIAA was about P250 million. It ballooned to more than P500 million in 2003, the year the airport became an international facility.
Catagcatag could not recall how much the MCIAA had already paid the City Government until it stopped paying in 2003.
But MCIAA records showed that it has already paid a total of P258 million based on the P3 million monthly installment for four years.
Dignos said they will implement the writ of execution in such a way as not to disrupt services at the airport.
Dignos said MCIAA failed to elevate the ruling to the SC on time and instead asked it to decide on whether the authority was a government agency or a corporation.
He said MCIAA did not petition the CA and pray for a restraining order so the authority cannot stop the implementation of the writ once it is issued. (EOB/OCP)
