Padlock order vs. KFC recalled

CEBU, Philippines – Mayor Tomas Osmeña yesterday recalled his order to padlock the four branches of Kentucky Fried Chicken in Cebu City and its sister establishment, Mister Donut, because while their business permits were found to be fake, they are paying taxes to the city.

The City Hall personnel were already preparing to close the KFC chain of stores when Osmeña recalled his order at shortly before noon yesterday, minutes after a representative of the food stores met with him at his office.

The four KFC branches are located near the Redemptorist Church in Ramon Aboitiz St., Ayala Center, SM City and at the Coco Mall. The other establishment is the Mister Donut at Salinas Drive.

Nanette “Tata” Sungahid, head of the city’s tax mapping team, said City Hall records show that KFC paid P414,276 in business taxes for first two quarters this year, while the remaining P323,000 taxes are to be paid on staggered basis until the end of the year.

But while Osmeña recalled the closure order against KFC, he said City Hall will continue to investigate in coordination with the management to identify the persons who faked the business permits.

The tax mapping team discovered the fake business permits when they inspected the business documents of KFC.

“Maayo kaayo pagkabuhat ang fake nga business permit nga maora’g tinuod g’yod tan-awon gawas lang sa klase sa papel nga ilang gigamit,” Sungahid said.

Sungahid said while they were examining KFC’s business permits, they noticed that while it was allegedly issued on February 2, 2009, it still carried the signature of one of their personnel whose assignment to prepare the document only up to January 31.

The City Hall’s policy is that even if the management of an establishment has already paid taxes to the city, it will not issue a business permit unless they can completely secure the required clearances from other government offices, among them are the Social Security System, PhilHealth and Pag-IBIG.

Initial information showed that the KFC management hired an agency to work for them to secure the business permits.

Sungahid suggested to the KFC management to verify with SSS, PhilHealth and Pag-IBIG because it might be possible that the agency that they hired to secure the required clearances and to pay the premiums for their employees just pocketed the money and fabricated the fake permits.

But Osmeña said as long as the business establishments pay taxes to the city, he will allow them to continue to operate their business and it is up to the other government agencies to run after them.

Seven other business establishments were closed down by City Hall yesterday for failure to pay the correct amount of taxes. — Rene U. Borromeo/BRP (THE FREEMAN)