A MASSIVE proposed tax break for a major quarrying company has hit a roadblock in Cebu. On Monday, April 6, 2026, the Cebu Provincial Board (PB) returned a proposed P211.56-million compromise agreement with Apo Land and Quarry Corp. (ALQC) back to the Executive Department. The board is demanding a stricter legal and financial review before any deal involving public funds gets the green light.
A massive 82 percent reduction
The sheer size of the discount raised eyebrows during the board's regular session. Records show the Provincial Government originally assessed ALQC a staggering P1,218,630,650.84 in taxes, monitoring fees, environmental enhancement fees and surcharges from 2009 to 2025.
However, negotiations led by the Executive Department resulted in a proposed settlement of just P211,560,530.35. This massive 82 percent reduction would be payable in a one-time lump sum.
The drop was achieved by removing the tax on extraction, recalculating monitoring fees and granting an 80 percent discount on surcharges and penalties between 2009 and 2019.
Why the board sent it back
The committee on ways and means flagged several issues, noting the deal was negotiated without the PB's prior authority and pursued even though court cases involving ALQC are still pending.
“The committee acknowledges and appreciates the efforts of the Executive Department in seeking to resolve a long-standing dispute and recognizes that compromise agreements are acknowledged in law as legitimate means of resolving disputes, particularly when prolonged litigation may involve uncertainties, delays and additional costs,” the committee report stated.
“However, any agreement involving public funds, property, or claims of the Province necessarily requires not only careful review but also prior authorization and approval of the Sangguniang Panlalawigan, pursuant to the Local Government Code. Accordingly, no compromise should be undertaken without due regard to this preliminary requirement,” the report continued.
The committee stressed that the board's participation is “essential to ensure that any settlement or agreement entered into by the Province involving public funds are legally sound, fair and protective of the interests of the Province of Cebu and its constituents.”
Missing voices and rising tensions
The hearing also sparked debate among board members. Second District PB Member Stanley Caminero questioned if the review was thorough enough since ALQC representatives were not present to share their side.
“May I just inquire… if the committee hearing… was considered already sufficient… in the absence of hearing from the side of the Apo Land or the ALQC,” Caminero said.
Fifth District PB Member Michael Joseph Villamor, the committee chairman, replied that hearing from the company wasn't needed right now since they were returning the deal to the executive branch.
“I believe this is no longer necessary as the recommendation of the committee on ways and means is to have this returned to the Executive Department and if there should be a renegotiation or reassessment, I think it's up to the executive to deal with ALQC because our focus with the committee hearing was specific to the compromise agreement and resolution of the board member of laws,” Villamor said.
The blocked deal comes amid rising political tensions. On March 11, Gov. Pamela Baricuatro declared she was “prepared for war” and called Vice Gov. Glenn Anthony Soco a “hypocrite” over his stance on the issue. Soco had previously assured the public that the board would carefully review the settlement's impact on ordinary taxpayers.
What happens next
The committee is now advising the Executive Department to secure proper authority, conduct a comprehensive legal and financial reassessment and seek guidance from the Commission on Audit. With billions of pesos originally on the line, the final decision on this dispute will set a major precedent for how Cebu handles massive corporate tax collections in the future. / CDF