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Saturday, June 26, 2004
Pelco 2's closure deferred
By Rhay Navales
MABALACAT -- Town officials deferred Friday the scheduled closure of the Pampanga Electric Cooperative (Pelco) 2 sub-office in Barangay San Francisco here, giving the power coop more time to settle its alleged P15 million debt to the municipality.
The padlocking of the electric cooperative sub-office was set Friday by Municipal Treasurer Angelito Pelayo. However, it was rescheduled to Monday as Pelco II was given 10 "working days" instead of 10 "calendar days" to settle the account.
Mayor Marino "Boking" Morales said Pelco 2 officials should pay more than P15 million in national wealth accumulated shares of the municipality as provided for under the 1991 Local Government Code.
In a letter to Pelco 2 executive director Rodolfo Salas dated June 14, Pelayo has given the power coop 10 days to settle some P15,660,000 representing national wealth share in the utilization of Mabalacat's natural resources from 1999 up to 2003.
"Should you fail to settle the aforesaid amount within the period given, we will promptly initiate closure proceedings on your firm and file corresponding legal action in court," Pelayo told Salas.
Aside from the national wealth share, Pelayo stated, the Municipal Government is also demanding from Pelco 2 business tax amounting to P13,425,630 from 1992 to 2002.
Lawyer Pepito Torres, Morales' legal counsel, said the local government's tax claim is based on the provisions of the Local Government Code.
Salas however stated in his reply to Pelayo "Pelco 2 cannot comply with your demand to pay its alleged tax obligation to the municipality."
According to Salas, the electric cooperative was organized not for profit and that it is exempted from the payment of business tax being imposed by Municipal Government.
"The Municipal Government has no authority to collect business tax from Pelco II because its tax ordinance does not specifically impose such on the activity of the electric cooperative," Salas explained.
In a meeting with town officials on Thursday morning, Salas said they do not recognize the legality of the local government's tax claim and that electric cooperatives are exempted from paying business and other forms of taxes.
The tax exemption, Salas said, is provided for under Presidential Decree No 269 (Creation of Electric Cooperatives).
Consumers in this town express fear of an imminent blackout should the Municipal Government close down the Pelco 2 sub-office.
This, after Salas warned to stop their operations and cut off electricity here should the local government padlock their sub-office.
(June 26, 2004 issue)
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