Iloilo City government to auction off Peco’s assets to cover P106-million tax liability

By Lenie Lectura -November 12, 2019
from Business Mirror

THE City Government of Iloilo on Monday said it will auction off next month the assets of Panay Electric Co. (Peco) to pay for the company’s P106-million real-estate tax liability and penalties since 2006.

Iloilo City Mayor Jerry Treñas said, in a statement that this move would address government’s collection problem with Peco, an issue that has persisted under three mayors despite multiple demand letters to Peco.

Up for auction are Peco’s posts, with total market value of P214.9 million, according to City Treasurer Office Tax Enforcement Division chief John Ladrillo.

The CTO said it will put a floor price of P106,881,685.33 as the lowest bid when it puts up for bidding Peco’s land where its thousands of wood electricity posts stand.

Peco’s tax liability arose from its refusal to pay the real-estate tax assessed by the City Treasurer’s Office on the land where its electricity posts stand on. These small pieces of land beside the streets of Iloilo City will be the subject of the December 12 auction.

Ladrillo said the P106.8-million floor price was computed based on Peco’s total tax liability since 2006 amounting to P97,164,438. 81, the cost of the sale including documentary stamp tax estimated at P9,716,443. 88 and a registration fee of P802.64.

Unable to collect since 2006, the city government ordered the Iloilo City Business Permit and Licenses Office not to renew Peco’s business permit this year.

As of press time, Peco has yet to comment on this. However, Peco lawyers have scheduled a news conference on Thursday to discuss the recently concluded probe of the Energy Regulatory Commission (ERC) on the maintenance of Peco’s distribution lines.

Treñas also said he was disappointed at the statement of Marcelo Cacho, Peco’s administrative manager, belittling as “not a big issue” the City Mayor’s complaint with the Office of the President and the ERC against Peco’s failure to replace the dilapidated electricity poles.

“Cacho should not treat as a small issue the safety and security of the people of Iloilo and damage to government property,” said Treñas.