MECO deposits P2.8M with RTC

CEBU, Philippines - Amount represents contested tax assessment; act averts auction of its electric poles and transformers.

The Cebu Provincial Government has shelved the sale at public auction the electrical poles and distribution transformers owned by the Mactan Electric Company Inc. (Meco) after the company deposited P2.8 million with the court.

Provincial Legal Officer Marino Martinquilla said that the payment has ward off the planned auction of Meco’s properties.

“No auction will be conducted after Meco deposited P2, 842,430.35,” he said.

Martinquilla, however, clarified that although Meco deposited P2.8 million, the case for nullification of notice of assessment and tax declarations and injunction with prayer for writ of preliminary injunction would still continue.

“The court will determine the legality of the issue,” he said.

The auction was supposedly scheduled for July 2, 2012.

Aside from the Provincial Government, also named defendants were the Municipality of Cordova, the municipal assessor of Cordova and the provincial treasurer.

Meanwhile, during the hearing of the writ of preliminary injunction last June 6, 2012, the defendants manifested before the court their willingness not to pursue the auction if Meco will pay “under protest” the real property tax assessment worth P2.8 million.

However, Meco opposed as to the nature of payment but agreed to deposit the amount in court.

“Plaintiff Meco did not agree to a payment under protest, but it agreed to deposit such amount in court without prejudice to its position on the illegality of the assessment and provided defendants would not conduct such auction,” the report reads.

With that arrangement, the defendants agreed.

The court will no longer issued a writ of preliminary injunction citing it will become moot and academic after parties had reached an agreement. Martinquilla said there will be no auction while the case is still pending before court.

Meco deposited P2,842,430.35 through the Allied Banking Corporation Manager’s Check dated June 11, 2012 payable to the order of RTC Clerk of Court.

Earlier, Meco filed a civil case against the defendants seeking the court’s assistance to stop them from conducting the sale at public auction.

Meco claims that if the auction pushes through, it will cause a serious damage not just for them but for the residents and businesses in Cordova.

“Without electric power, the local economy would definitely collapse,” they said. However, the defendants said there’s nothing to worry.

“Plaintiff’s unfounded fear that the auction sale will be detrimental to the consuming public as it will result in prolonged disruption of the electric service to its customers is clearly a speculation and unfounded,” they said.

Defendants added there will be no blackout in Cordova. (FREEMAN)