A CEBU City Councilor requested Mayor Nestor Archival to address the tax “overcharging” concern of several taxpayers who were victimized by alleged “unauthorized override functions” in City Hall’s computer system.
This scheme inflated their tax assessments, resulting in them paying more than what is legally required.
On Aug. 19, 2025, in his resolution, Councilor Jose Lorenzo Abellanosa urged the mayor to issue a new executive order directing the City Assessor’s Office (CAO) and other concerned agencies to nullify all assessments done through the AS400 Override.
Several taxpayers and property owners have claimed to have been overcharged on their real property taxes from 2022 to 2023. These affected taxpayers and property owners are now awaiting the Archival administration to act upon their prior request to nullify and make necessary corrections to their overcharged tax assessments.
The values derived from the alleged “AS400 Stamp Override” do not reflect the actual and approved schedule market values of their properties under the Real Porperty Tax (RPT) Code.
In his resolution, Abellanosa also asked the mayor to revert to the duly approved schedule market values and to institute all necessary remedial measures to correct and address the immediate concerns of these owners affected and prejudiced by the said illegal activity.
He also directed the City Assessor, while waiting for the said directive, to start implementing initial measures to address the concerns and complaints of the affected real property owners.
For more than two decades, the City’s RPT Code has remained unchanged despite attempts by then-mayor Michael “Mike” Rama. The 17th Sanggunian Panlungsod approved a revised RPT Code in 2023, but Rama vetoed it, reportedly because he did not favor the City Council’s version of the tax increase.
The attempts to update the RPT Code were made to justify the proposed and approved P50 billion annual budget in 2023.
With the non-progress of the proposed RPT Code increase, the “AS400 stamp override” scheme was believed to have been used to deliberately increase the tax assessment of some property owners, which would provide cash flow for the City Government.
What is the AS-400 Stamp Override?
The scheme was first exposed when then-City Councilor Rey Gealon made a privilege speech to the Council on June 25, 2025, urging then-mayor Raymond Alvin Garcia’s administration to create a task force to investigate and nullify real property tax assessments allegedly issued through an “AS400 stamp override scheme.”
The AS400 is a midrange computer system from IBM, developed in 1988. It is known for its reliability and security in handling business applications. The Cebu City Assessor’s Office used the system to compute the tax assessment of its taxpayers annually.
Gealon’s exposé was based on a report by the City Legal Office (CLO), which alleges that some City Hall employees were coerced to overriding the AS400 system to implement unauthorized increase in tax assessments.
How does it affect the taxpayers?
Gealon reported that he was “stunned” by CLO’s findings, which showed market values increasing by as much as 700 percent, with some reaching 3,200 percent, all allegedly “without due process.”
The CLO’s report, released in May 2025 pointed to former City Administrator Collin Rosell and former Local Finance Committee chairman Jerone Castillo as being linked to the irregularities.
Allegedly, Rosell coerced IT staff from the Management Information and Computer Services (MICS) to override the AS-400 system, while Castillo approved LFC Resolution 7, which facilitated MICS’ upgrade of the RPT assessment system used by the CAO and City Treasurer’s Office.
The MICS staff reportedly had to select the highest value for tax assessment, under pressure by Rosell, for the tax assessment to issue a value that did not reflect the RPT Code.
Rosell denies any wrongdoing and described CLO’s investigation as malicious. He maintains that no RPT rate increase was implemented during his tenure. Rosell said any system changes under his watch were lawful. He argued that property valuation, declared by owners, should not be equated with taxation.
Has action been taken?
Archival believes the overrides may have been a way to increase the RPT to support the cash flow for the approved P50 billion annual budget in 2023.
Archival has tasked the CLO with suggesting actions to address the matter while ordering a review of the potential criminal liability of those involved. He has also directed a review of possible remedies for the taxpayers.
Days before his exit, Garcia issued Executive Order 20, where he declared all assessments or reassessments using the AS400 system from March 19, 2024, to May 8, 2024, as void ab initio, or void from the beginning.
Garcia also created a task force composed of representatives from the City Legal Office (investigation and case build-up), CAO (re-assessment operations), CTO (refund/credit implementation), Management Information and Computer Services (system audit), and Internal Audit Service Office (concurrent audit).
However, the executive order, endorsed to the City Council after the transition, is under review for its “enforceability” in nullifying real property assessments that were issued through an alleged fraudulent computer override system.
Some property owners have already urged the current administration to nullify their tax assessments. They also want corrections on their tax assessments. The City Council has voiced support for the taxpayers’ request. The City Government has yet to take action on this matter.
Acting City Assessor Nova Batiller told the council earlier that her office cannot process the requests without a directive from Archival. / EHP