AFTER filing a criminal case against them, Cebu City Mayor Tomas Osmeña issued a show cause notice against Banco de Oro (BDO) Magallanes-Plaridel branch yesterday.
Osmeña showed to reporters a copy of the notice asking Joseph Lao, manager of the bank, to explain in writing within five days why their business permit should not be revoked and their business establishment closed.
The notice dated Jan. 6 also states that the bank executives should personally serve their explanation to the office of Osmeña.
“Records from the City Treasurer’s Office (CTO) show that the BDO-Magallanes branch, through Branch Manager Joseph Lao, has deliberately and maliciously under-declared and falsified its gross sales in its business permit dated Feb. 3, 2016 and its corresponding application form,” reads the portion of the notice.
As of 2 p.m. yesterday, Lao said they have not yet received a copy of the notice.
Lao begged off from giving a statement on the matter since the case filed by the City against them was referred to their legal department for appropriate action.
“No comment. We will just let the legal department handle it,” he said.
The mayor believes BDO violated Article 171, Paragraph 4 (falsification) and Article 318 (other deceits) of the Revised Penal Code, and Section 5 (false statements) of the Cebu City Tax Ordinance.
Last Wednesday, Osmeña filed a criminal complaint before the Office of the Cebu City Prosecutor against the BDO executives and board of directors.
Osmeña said the bank “deliberately and maliciously under-declared and falsified” its gross sales last year at P400,057.
The mayor said the city treasurer shared the view that it was impossible for a private bank to have gross sales of only P400,000.
A stall owner at the Carbon Public Market, he said, declared a gross revenue of more than P1 million.
The mayor accused the bank officials of tax evasion, which he said is a crime.
Aside from BDO, Osmeña also filed criminal complaints against four officials of SM Prime Holdings, Inc. on Nov. 23 last year for allegedly misrepresenting the size of SM Seaside City to reduce its tax obligations to the City, amounting to about P23 million.
BDO is an SM Group affiliate.