Martinez defends rejection of P211-million tax settlement

Local

A MEMBER of the Cebu Provincial Board fired back at critics questioning the body’s decision to reject a P211.56-million compromise with Apo Land and Quarry Corporation (ALQC), calling the proposed deal “grossly disadvantageous” to the province.

Celestino “Tining” Martinez II on Wednesday, April 8, Martinez explained that while compromises can be practical, settlements involving public funds require “the utmost caution and a heightened sense of responsibility.”

He stressed that any agreement must be equitable, legally defensible, and backed by complete documentation, especially when government money is at stake.

Martinez criticized the proposed settlement, which would have slashed the province’s P1.218-billion tax claim by 82 percent.

He highlighted key reductions under the deal, including the extraction tax from P200 million to P0, monitoring fees from P225 million to P8 million, environmental enhancement fees from P199 million to P157 million, surcharges from P147 million to P10 million, and interest from P472 million to P36 million.

He specifically pointed to Section 4.1 of the proposal, which would bind the province to the compromise regardless of future court rulings.

“A compromise is intended to settle existing obligations. It should not curtail the Province’s ability to fully enforce its rights in the future,” Martinez said, warning that the provision could favor ALQC while limiting the province’s ability to recover legally owed funds.

Martinez also cautioned that approving such a deal could set a dangerous precedent, encouraging other entities to delay compliance in hopes of negotiating similar reductions.

Acknowledging that litigation may be prolonged if a compromise fails, Martinez said the principles of accountability and fiscal responsibility must take priority.

“Ultimately, our duty is not merely to resolve disputes expediently, but to ensure that our decisions uphold the law, and withstand public scrutiny,” he wrote, explaining his vote to return the measure for further review.

The dispute centers on alleged unpaid taxes and underreported quarry output, including extraction taxes, monitoring fees, environmental enhancement fees, surcharges, interest, and penalties under the Cebu Provincial Revenue Code of 2008.

A 2025 drone survey suggested that ALQC may have extracted more limestone than previously declared.

Earlier settlement offers, including one as low as P6.18 million, were rejected.

The P211.56-million figure emerged through court-mandated mediation, aiming to avoid prolonged litigation.

With the Board declining to approve the agreement, Governor Pamela Baricuatro confirmed the case will now proceed in court, where the province seeks to recover the full amount of assessed taxes.

Acting Governor Glenn Anthony Soco defended the Board’s authority to review agreements, stressing that the Executive retains discretion over legal matters.

He noted that the legislature’s scrutiny was collegial, not personal, and approving the settlement without proper review could weaken the province’s tax collection position.

“When you talk about taxes and fees, that’s a very delicate matter… kwarta man na sa katawhan,” Soco said, emphasizing the importance of protecting public funds.

Committee on Ways and Means Chair Michael “Mike” Villamor clarified that the Board does not oppose compromise in principle but returned the resolution due to procedural concerns and the steep reduction in fees, penalties, and environmental enhancement charges.

Former congressman Pablo John Garcia, brother of former Governor Gwendolyn Garcia, also criticized the settlement for favoring a wealthy corporation.

He described the deal as “grossly disadvantageous to the government,” warning that Board members could have faced legal liability if they approved it, and noting that ordinary taxpayers would continue paying dues without relief.(MyTVCebu)