Vitas operator told: Pay P3.3-M back taxes

Manila Mayor Alfredo Lim has won against Manila Councilor Dennis Alcoreza after a Manila court ordered the Alcoreza-owned Dealco Farms Inc. to pay the city government about P3.3 million in back taxes.

Dealco Farms had operated the 22,000 square-meter, city-owned Vitas Slaughterhouse in Tondo until it was evicted on orders of Lim.

In his order, Judge Silvino Pampilo Jr. of the Manila Regional Trial Court Branch 26 said Dealco Farms must pay the city government the total of P384,012.26 in unpaid real property taxes, and a fourth quarterly installment of back taxes of P2,946,037.50.

Its total obligations to the city government is P3,330,049.76.

The city government had filed before the court a motion for execution after Dealco Farms failed to pay the back taxes upon demand.

In defense, Dealco Farms said it had “religiously paid” its monetary obligations under a compromise agreement until the city government took over the Vitas Slaughterhouse on July 10, 2008.

Dealco Farms said Lim and his co-defendants have no right to be awarded the relief they had asked for in their motion as is not in any way obligated to pay the amount due under the compromise agreement.

However, the judge said after a “careful and judicious evaluation of the pleadings and arguments,” the court found Lim’s motion for execution to be “meritorious.”

 “It should be noted that what is being collected by the defendant (Lim, et al) is not the monthly rentals for the slaughterhouse, but the unpaid real property taxes, wherein the balance of P6,912,220.62 was agreed to be payable in three years at P192,006.13 a month and the rentals in arrears, wherein the fourth quarterly installment of P2,946,037.50 became due on Aug. 29,” read the court decision.

Lim’s motion for execution was in accordance with stipulation in the agreement that the court could not change, the decision added.

The court said under compromise agreement, if Dealco Farms fails to pay any of the amounts when due, the city government shall be entitled to obtain a writ of execution for the agreement’s enforcement.

“When a compromise agreement is given judicial approval, it becomes more than a contract binding upon the parties,” read the court decision. “Having been sanctioned by the court, it is entered as a determination of a controversy and has the force and effect of a judgment.”

“Courts do not have the power to relieve parties of obligations voluntarily assumed,” Pampilo added.    

Earlier, Lim said authorities found out that Dealco Farms “illegally subleased” the Vitas slaughterhouse to another Alcoreza-owned firm without informing the city government.

Lim said Alcoreza’s actions will send the wrong message that it is all right “to rob the city government since one can use that money to get elected and then go scot-free or continue protecting illicit activities.”

Inspections by the City Veterinary Inspection Board and the National Meat Inspection Commission showed that the Vitas slaughterhouse was in the “most repugnant state of degradation” and lacking in sanitation and hygiene with the stench of animal manure scattered all over the place, flies swarming inside and outside while under the management of Dealco Farms and later Meatworld.

Dealco did not upgrade the wastewater facility that City Hall put in place in the slaughterhouse, opting to dump wastewater into Manila Bay, according to the two agencies.