BANCO de Oro (BDO) has secured an injunction order from the Regional Trial Court (RTC), enjoining Cebu City Mayor Tomas Osmeña from performing any act that would lead to the closure of its branches in Cebu City.
The court also prevented the mayor from making public statements or comments related to the case.
In a statement sent to SunStar, the BDO management said the court issued the writ of preliminary injunction Tuesday, March 28.
"With this injunction order, BDO looks forward to having its pending business permit applications in Cebu City be acted upon by the city mayor, considering that BDO has submitted all the required documents needed by the City Government," it said.
BDO has about 28 branches in Cebu City. Osmeña earlier threatened the bank that he will close 26 of its branches for violating the City Tax Ordinance by under-declaring and falsifying the bank’s declaration of gross sales of only P400,000 for 2016.
The mayor filed a criminal complaint against BDO executives and Board of Directors before the Office of the Cebu City Prosecutor last December 4.
But BDO assured its Cebu City branch personnel and clients on Wednesday that it has complied with legal requirements in ensuring continuing business and uninterrupted service in Cebu City.
"This injunction order is an affirmation of its compliance," it said.
The BDO applied for the issuance of the writ of preliminary injunction before the sala of RTC Branch 18 Judge Gilbert Moises. It also filed before RTC last February 13 a mandamus petition against Osmeña and City Treasurer Tessie Camarillo.
It said in its mandamus petition that the City Hall refused to accept payments for 2017 local taxes and fees of its 27 branches, including the one on Magallanes St.
The inaction, it said, is “without just and valid cause” and meant to “proceed with his unlawful design to ultimately close all branches of BDO in Cebu City.”
Citing the Anti-Red Tape Act of 2007, BDO argued that Osmeña, as the city mayor, “has a positive legal duty to fairly, without bias and partiality, and timely resolve BDO’s business permit applications for 2017.” (LMY/With SunStar Cebu/SunStar Philippines)