MISAMIS Oriental Governor Yevgeny Emano called the complaint of the Ombudsman against a Capitol employee as harassment meant to derail the Provincial Government’s tax collection efforts against the Japanese firm.
Emano said the case stemmed from the Provincial Government’s efforts, through former treasurer and now acting accountant Marilou Rivera, to represent the local government of Jasaan town in collecting real property taxes against Pilipinas Kao, Inc.(PKI).
"Nagduda ko nga kining maong sumbong para ma-harass ang provincial government nga dili kami makakolekta og buhis sa ila (I doubt that this allegation was meant to harass the Provincial Government, for us not to collect tax against [PKI])," Emano added.
The Office of the Ombudsman has ordered Rivera to be suspended for one year after it found her guilty of oppression and neglect of duty in connection with the issuance of warrants of garnishments against PKI in 2014.
Rivera was suspended after she assessed PKI's unpaid real property tax for 11 years from 2002 to 2013 in the total amount of P631.5 million.
The Ombudsman decision said Rivera continued to issue warrants of levy against PKI in the amount of P244.7 million and warrants of garnishment against the firm's bank accounts to cover the P631.5 million assessment despite claims by PKI that it is exempted from paying local taxes including RPT since it is covered by the Special Economic Zone Act, otherwise known as Republic Act 7916.
Part of the Ombudsman decision reads that "respondent's issuance of the warrant of garnishment against PKI's bank accounts appear to be improper."
"Hence, there was no need to freeze PKI's accounts and hamper its business operations," the decision added.
Emano said the Ombudsman decision could become a precedent and prevent local government units (LGU) from collecting the right taxes from multinational companies.
"Gikasubo ko pag-ayo kay isa ni sa akong gituohan nga pagpitol sa mga LGU nga mahadlok sa mga multinational corporation sa pagkolekta buhis tungod kay mahimo man diay nga masumbong (I am saddened because I thought that in this way LGU’s will not be afraid to collect taxes against multinational corporation through a proper complain)," Emano said.
Emano said the Capitol is collecting taxes to fund and support the projects of the Provincial Government for the welfare of the people and Rivera's actions is in line with her duties and in accordance with the law.
Emano added no violations has been committed as the Capitol only attempted to collect what is supposed to be collected.
"Sa dugay nga panahon nakapahimulos sila (PKI) sa yuta ug mga trabahante sa lalawigan (It’s been so long since they [PKI] took advantage of the land and workers in the province)," Emano said.
PKI, a company that supplies high quality, biodegradable chemical products from coconut oil for both local and international markets, started its operation in 1979 and the Philippine government declared the plant site as economic zone in 2001.
Emano said they are still studying the legal remedies to take, whether to ask the Ombudsman to reconsider its decision or to appeal the decision to the Court of Appeals.
"Nagtuo ko walay bisan gamay sayop o pag-abuso nga gihimo ang treasurer. Nagtuo mi nga dili angayan pasagdan ang pagduot sa treasurer. We will exhaust legal remedies para maabswelto siya sa kaso (I believed that the treasurer [Marilou Rivera] made no mistake or abuse. We believed that we should not taken for granted the harassment against the treasurer. We will exhaust legal remedies for her to be dismissed in the case)," Emano said.