Cebu City vs. SM Group: Truth can be verified

In the dark years of martial law, when media was so controlled and cable TV was virtually non-existent, we must have missed several shows that were worth watching to. So that, we missed that very “influential 1973 BBC TV series”, The Ascent of Man. It was written and presented by Jacob Bronowski, a British mathematician, biologist, and science historian of Polish origin. Though he passed away in 1974, he is still well remembered to this day through his famous quotable quotes. One of which was, “We OUGHT to act in such a way that what IS true can be verified to be so.”Simply put, if it can’t be verified then it isn’t true.

As we look into the developments in Cebu City, this quote is remarkably apt and timely.  For instance, the verifiability of the facts and insinuations surrounding the controversy between BDO Unibank, Inc. and Mayor Tomas R. Osmeña are worth looking into. 

First and foremost, the ruling of Regional Trial Court Executive Judge Gilbert P. Moises. In a decision issued on March 28, Judge Moises said “there is merit in the bank’s motion for a writ of preliminary injunction.”  While the civil case filed by the bank against the Cebu City Hall is still pending in court, Judge Moises ruled that “To this day, the court deems it proper and imperative that the status quo be maintained and that the respondents be enjoined from doing any of the acts mentioned in the petition while the merits of the main case of Mandamus is being heard.” 

To recall, BDO sought refuge with the court after Mayor Tom threatened to close its branch on Magallanes Street on account of, allegedly, the under-declaration of its gross receipts and falsification of documents. It further sought the help of the court for City Hall’s inaction on its application for business permit renewal.

With regard to the alleged under-declaration of gross receipts, we have emphasized this in, at least, two instances in the past. As have always been reiterated, we shouldn’t condemn this bank’s branch outright. Remember, unlike stand-alone banks, those with several branches operate differently. If this has been a bank with only one operating unit, then, obviously, the bank is a tax evader. Then, Mayor Tom is right, the gross receipts will not even be enough to pay the salary of a janitor. Notably, however, BDO has several branches nationwide. Possibly, therefore, some branches must have contributed so much in deposit taking only while lending activities are undertaken by the others. Consequently, some branches will have so much revenue while others have none.

Moreover, Department of Finance‘s Local Finance Circular No.  1-93 dated June 16, 2003 clearly defines gross receipts to include only interest from loans and discounts – this represents interest earned and actually collected on loans (demand and time loans and mortgage contracts receivables) and discounts (on bills discounted); rental earned on leased premises; income earned and actually collected from acquired assets; and commissions from lending activities. Therefore, if a branch is so strong only in deposit taking, obviously, there is no gross receipt to speak about in the first place.

So, as Regional Trial Court Executive Judge Gilbert Moises ruled, the bank’s motion for a writ of preliminary injunction is meritorious. So that, as Jacob Bronowski puts it, truth is verifiable.That’s as clear as daylight. 

On the other hand, recently, Mayor Tom claimed that he is receiving threats for fighting “tax evaders”. Who are these tax evaders he is referring to?  There could be only two -- the SM Group (SM Prime Holdings Inc. and BDO Unibank Inc.- Magallanes Cebu Branch) and GDS Security and Detective Agency Inc. To recall, these are the only entities he filed tax evasion cases in court. 

In singling out that this initiative is well funded and that such tax evader has a "very large budget” and that “they have enough lawyers to keep everything in court until I die of old age” simply means that it should be the bigger of these two entities.  Well, the SM Group.

Absolutely, this insinuation is totally devoid of logic. Honestly, in all discourses we’ve witnessed, the SM Group seemed to be more factual and straightforward. The court, likewise, saw it the same way. So, why will the SM Group go for such dirty tactics dirty politicians are known for?

As usual, to make the so called “threat” real, Mayor Tom refused to name that someone who may be behind the move as he "would get in trouble." Unverifiable, therefore, more likely, is not true. Furthermore, he bravely said, he isn’t afraid of these threats. Of course, there is nothing to fear on threats that do not exist. That’s a no brainer.

Indeed, rather than concocting charges or spending time writing scripts portraying his heroism (in running after big-time “tax evaders”), why won’t he take steps on gathering everyone in one table and settle their differences. He must disarm himself of hate and stay noble and dignified just like what the SM Group displays. Truly, if he cares much about the Cebuanos (as he repeatedly been harping about), that should be the way to go to.