‘MCIAA not remiss in paying taxes’

CEBU — After last week’s failed auction of the properties of the Mactan Cebu International Airport Authority (MCIAA), its general manager denied allegations that the airport has been remiss in paying real estate taxes to the Lapu-Lapu City government.

Contrary to reports, MCIAA general manager Angelo Verdan clarified that the airport management has been paying substantial monthly installments to the city government since 1997.

"Out of our total real estate tax payables of P501 million, we have so far paid a total of P240 million," he said.

In 1997, Verdan said the MCIAA paid the city P10 million, followed by monthly installments of P2 million until 1998. These installment payments were raised to P4 million monthly in 1999 and increased further to P6 million monthly during Verdan’s term.

While the auction failed, Lapu-Lapu City officials said the city treasurer will issue a certificate of sale stipulating that the city government now owns the MCIAA properties.

But it has a relief clause stating that MCIAA can redeem the properties within a year, otherwise the city can already dispose of them.

As this developed though, Verdan said the MCIAA board of directors is negotiating with the city government for a compromise agreement on the tax obligations.

"We are now talking to local government officials for an amicable settlement that will not adversely affect airport projects," he said.

Last month, Mayor Arturo Radaza, Vice Mayor Norma Patalinghug and city councilors demanded that the MCIAA settle its tax dues since the city needed the funds for its pending projects.

But airport officials allegedly ignored it, arguing that MCIAA was not obligated to pay such a big amount.

City officials, however, countered that the P6 million the MCIAA has been paying on a monthly basis is just too minimal. — Freeman News Service