MANILA, Philippines – The city government of Mandaluyong has declared ownership of three Metro Rail Transit (MRT) stations in its jurisdiction on the strength of a writ of possession granted it by a local court Wednesday.
Mayor Benjamin Abalos Jr. said the city now has the authority to demand rent from MRT Corp. and collect taxes from firms that own commercial stalls and advertising billboards at the three stations.
Judge Carlos Valenzuela of the Mandaluyong Regional Trial Court Branch 213 Wednesday issued a writ placing the MRT’s Boni Avenue, Shaw Boulevard and Ortigas Avenue stations in the name of Mandaluyong City.
“We therefore command you to place petitioner Mandaluyong City government in possession of the subject real properties forming part of the Edsa Metro Rail Transit 3 covered under tax declaration No. D-013-10636, in the name of Mandaluyong City…,” Homer Peñada, acting branch clerk of court, said in the order addressed to the branch sheriff.
He also directed court sheriff Gerardo Umali to “eject the Metro Rail Transit Corp. and all persons or entities claiming rights under it who are physically occupying the same.”
MRT Corp., a private company, built and equipped the overhead train system under a build-lease-transfer deal. In return, the firm would receive from the government monthly rent and maintenance fees through the Metro Rail Transit Authority, a unit of the Department of Transportation and Communications.
Abalos, meanwhile, assured the public that the city government would not intervene in MRT operations nor initiate moves that could drive up train fares. “What we’re after is the right of local governments to collect taxes from commercial booths and advertising firms. We can also collect rent from MRT,” the mayor said.
Abalos said MRT Corp. owes the city P2 billion in real property taxes since the trains began operations. He said the MRT, as a private entity, should have paid real estate taxes from the start, but the Department of Transportation and Communication (DOTC) said it would take care of that responsibility.
The DOTC later indicated it would not pay taxes since, as a government agency, it is tax-exempt, Abalos said.
For now, the city shall not make any immediate demands on the P2-billion liability of MRT, he added, citing concerns that such a move may lead to an increase in fares.
Abalos said the city government does not wish to burden the riding public any further, and that it only wanted to compel MRT Corp. and establishments leasing space at the stations to pay current taxes.
Sought for comment, MRT General Manager Roberto Lastimoso said the Office of the Solicitor General, which is handling the case for the government, would file a motion for reconsideration to the writ of possession.
He added that they were considering temporarily ceasing operations at the three stations, thus limiting trips from North Avenue to Santolan, and from Baclaran to Guadalupe “if they physically block the trains.”