Purisima confirmation stopped over unpaid power plant taxes
MANILA, Philippines—Finance Secretary Cesar Purisima’s confirmation by the Commission on Appointments (CA) was held hostage on Wednesday by lawmakers supporting a campaign by one of them to collect at least P6.1 billion in taxes allegedly owed by a power plant in Quezon province.
Malacañang is treading cautiously on the matter because payment would set a precedent and pave the way for the settlement of more than P16 billion in tax liabilities for other provinces hosting power plants.
Members of the House of Representatives showed up two hours late into the 9 a.m. proceedings of the CA in apparent solidarity with Quezon Rep. Danilo Suarez.
<strong>Held hostage</strong>
When they came, the interpellation of Purisima dragged into mid-afternoon. Since some lawmakers wanted to further question him, the body approved a motion to decide on his fate on March 16.
“I think they just wanted to know what my position is on national issues,” Purisima later told reporters.
The CA committee on finance, chaired by Sen. Ralph Recto, convened at around 10:30 a.m. for Purisima’s appointment without any congressmen present, except for Suarez who came to oppose Purisima’s confirmation.
Quezon Gov. David Suarez, Representative Suarez’s son, on Monday again issued an ultimatum to Team Energy, operator of the 735-megawatt coal-fired power plant in Pagbilao town, to pay the P6.1 billion in taxes or face auction of pieces of its property.
Governor Suarez said the bidding on March 9 would proceed unless the plant operator pays.
The 200-hectare power plant is in Isla Grande in Barangay Ibabang Polo in Pagbilao facing Tayabas Bay.
<strong>Glaring absence</strong>
Representative Suarez said Purisima’s policies were detrimental to the country’s fiscal situation because he opposed the payment of realty taxes to Quezon for the Pagbilao plant.
Sen. Joker Arroyo noticed the congressmen’s absence. “I notice that there is no congressman around here,” said Arroyo.
At past 11 a.m., Representatives Roilo Golez, Rosendo Labadlabad, Simeon Datumanong, Luis Villafuerte, Antonio Alvarez, Ferjenel Biron, Antonio del Rosario, Rex Gatchalian, Erineo Maliksi, Rodante Marcoleta, Pedro Romualdo and Rodolfo Antonino strode into the room.
Representative Suarez said the Quezon provincial government was open to a compromise on the taxes.
“What we’re asking for is fairness,” said the elder Suarez, who had claimed responsibility for paying for a P1-million dinner in New York for ex-President Gloria Macapagal-Arroyo.
The Pagbilao plant was built under a build-operate-transfer agreement between Team Energy Corp. and Napocor in which Napocor agreed to assume the plant’s tax obligations.
Napocor, however, later claimed it was exempt from paying local taxes. The Supreme Court has ruled against it.
