P7M CPA tax payment eyed for relocation of squatters

The City council yesterday approved a proposed resolution authorizing Mayor Tomas Osmeña to enter into a memorandum of agreement with the Cebu Port Authority for the relocation of illegal settlers and vendors from the vicinity of the CPA.

The CPA has agreed to settle in advance the P7.1 million of the taxes it owes to the city government.

Under the memorandum of agreement, P2.5 million of the P7.1 million will be used in the relocation of over 150 squatters that occupied the sidewalks of Baclig Street, which is adjacent to Sergio Osmeña Avenue and along T. Padilla Street to the boundary of Cebu City and Mandaue City. While the remaining P4.6 million will go to supply and installation of traffic signal facilities.

The CPA has reportedly long been planning to remove the illegal occupants to speed up economic development at the Cebu ports and its adjacent private lots. The removal of the occupants would decongest the traffic on S. Osmeña Avenue.

Councilor Jocelyn Pesquera, the proponent of the resolution and chairman of the committee on budget and finance, said that the advance payment would not preclude the CPA from raising legal issues on the Manila International Airport and Parañaque City.

The Supreme Court's July 20 ruling on the case involving the Manila International Airport Authority and Parañaque City has been described as favorable to the CPA and MCIAA because they have similar cases with MIAA.

The High Court ruled that Manila International Airport is considered a government instrumentality, meaning its properties are owned by the national government and could not be subjected to tax by the local government unit.

SC ruled that the law allows real property owned by the Republic to be titled in the name of the government agency. "Such real properties remain owned by the Republic and continue to be exempt from real estate tax."

Last month, the management of SM City-Cebu decided to pay its P53.9-million taxes for real property, amusement and business for 2007. SM specifically asked City Hall to allocate P1 million of its advance payment for the relocation of squatters and vendors in their area.

The payment, according to a council resolution approved last month, will be used to fund various projects the city will prepare for the summit. The projects, mostly in the North Reclamation Area, include the rehabilitation of roads and drainage systems, street lighting, creation of traffic and road signs, pedestrian railings, center island fencing and repainting, landscaping and planting of Indian trees in undeveloped areas. - Garry B. Lao