First was the grim pronouncement by SM Prime Holdings that it will pay its taxes directly to the Bureau of Internal Revenue (BIR) after the Cebu City government failed to secure a tax exemption as part of their deal in securing prime lots in the South Road Properties (SRP).
That’s millions of pesos in revenue that should be going to city coffers instead of the national government.
Now the Philippine Amusement Gaming Corp. (Pagcor) has sent word it will will suspend its P4-million monthly share to Cebu City until an audit is done and the city government submits a full account of how it spent the funds.
In both cases, a full accounting must be made from both former and incumbent officials. While Rama pledged to make a report of the SRP status to the public, one had to ask whether his predecessor, Rep. Tomas Osmeña of Cebu City’s south district, and his team worked to secure the tax exemptions from the BIR or simply made assurances without follow-ups.
Whatever they did, the BIR certainly didn’t agree with the thought of the city receiving revenues from companies occupying SRP lots without giving something to the national coffers.
A different principle operates in Pagcor, which is under investigation for alleged corruption under its former board. Due to an ongoing Senate investigation, the Pagcor is requiring all its beneficiary local government units (LGUs) to make full audits as they should be under the law.
While the city government in both cases should fight for its rightful share of the funds, again full accounting should be done to justify the city’s demand.
In the case of the SRP, Mayor Rama said he will push for an exemption of the area as a special economic zone that, while intended for industries, had been reworked into a mixed-commercial and tourism use destination to earn profit.
It remains to be seen whether the BIR sees it that way.
At the same time, greater transparency should be seen in the use of Pagor’s P4-million monthly contribution to Cebu City through the mayor’s office.
In light of the expose of cash envelopes bearing Rama’s photo and name, city residents should demand how the mayor’s has been spending the Pagcor aid rather than learn it from his opponents and critics.