Iloilo City gov’t files estafa raps vs Panay power firm execs for non-payment of taxes
BLUE BUILDING The headquarters of the Panay Electric Co. in Iloilo City. The company’s distribution system has since been taken over by More Electric and Power Corp. —CONTRIBUTED PHOTO
ILOILO CITY—The Iloilo City government has filed a syndicated estafa complaint against top officials of the Panay Electric Company (Peco) for alleged non-payment of franchise taxes.
In a complaint filed July 2 at the Iloilo City Prosecutor’s Office, the city government represented by city treasurer Jinny Hermano alleged that Peco failed to remit franchise taxes amounting to P52,254,819.38 as of July 1.
Reached Monday by the INQUIRER, Peco declined to issue comment as they have not received a copy of the complaint.
But in an earlier statement, Peco insisted that it had paid P42,086,751.68 in franchise taxes in 2019 and P11,058,840.08 in January 2020 for the first quarterly installment for 2020.
In a petition for declaratory relief pending before the Iloilo City Regional Trial Court, Peco also pointed out that the city government revoked its business permit on May 8, 2020, because its legislative franchise was not renewed.
Article continues after this advertisement“It appears therefore that the respondent City of Iloilo is imposing a franchise tax against Peco while at the same time contending that Peco is not entitled to a business permit because it has no franchise,” according to its petition.
Article continues after this advertisementNamed respondents in the complaint were Roberto Fernandez (chair), Luis Miguel Cacho (president and chief executive officer), Ma. Elena Cacho (vice president), Jon Mikel Lorenzo Afzelius (corporate secretary), Marcelo Cacho (assistant corporate secretary), Emmanuel Lubis (treasurer).
Also named respondents were Peco board of directors members Mariano Cacho Jr., Ma. Elvira Cacho-Tolentino, Jaime Fernandez and Francis Saturnino Juan.
Peco allegedly failed to remit the franchise taxes for the second to the fourth quarter of 2020 despite demand letters from the city government, according to the complaint.
The city government also filed a separate complaint about the alleged violation of Iloilo City Revenue Ordinance No. 2007-016 against Roberto Fernandez, Luis Miguel Cacho, Ma. Elena Cacho, Afzelius, Marcelo Cacho and Lubis.
Peco’s franchise expired on Jan. 18, 2019. On Feb. 14, 2019, President Duterte signed Republic Act No. 11212, granting More Power Electric Corp. a 25-year franchise to establish, operate, and maintain a power distribution system in Iloilo City.
More Power took over the distribution assets of Peco in February last year after the Iloilo City Regional Trial Court issued a writ of possession.
LZB
