LGUs eye raps vs Casecnan Dam operator

CABANATUAN CITY, Philippines – The provincial governments of Nueva Ecija and Nueva Vizcaya are poised to file a civil suit and seize the personal and real properties of the American operator of the $600-million build-operate-transfer component of the Casecnan Multipurpose Irrigation and Power Project next month when the deadline imposed by the two LGUs for the company to settle its unpaid tax obligations amounting to P4 billion over the past six years has lapsed.

Jose Carreon Jr., assistant provincial assessor of the Nueva Vizcaya provincial government, told reporters during a press conference at the Acropolis Clubhouse here Thursday night, that officials of the two LGUs led by Gov. Aurelio Umali of Nueva Ecija and Gov. Luisa Lloren-Cuaresma of Nueva Vizcaya are bent on seeking three remedies to compel the California Energy Casecnan Water and Energy Co., Inc. to pay real property taxes it owes the two provinces since 2003.

Carreon said these remedies are the filing of a civil suit before the court, seizure of the personal property and sale at public auction and levy on real property and sale of delinquent property or a usable portion of it for public auction.

“There is no stopping our respective provincial governments from pursuing these three legal remedies if CECWECI fails to pay its tax arrears,” he said.

Carreon met with Nueva Ecija provincial treasurer Edilberto Pancho and local officials from both sides to discuss ways of taking over the operations of the BOT project in case of CECWECI’s failure to pay.

Also present during the meeting were Pantabangan (Nueva Ecija) Mayor Romeo Borja Sr. and Alfonso Castañeda Mayor Jerry Pasiguian.

Under the RPT payment scheme, CECWECI has to pay to the Pantabangan municipal government 40 percent of tax due, 35 percent to the provincial government and 25 percent to Barangay Villarica (Pantabangan) where its properties are located.

In the case of Nueva Vizcaya, the company will have to pay two percent of tax due divided into basic tax and special education fund. Of the one percent SEF, 35 percent goes to the Nueva Vizcaya provincial government, 40 percent to the municipal government of Alfonso Castañeda and 25 percent to Barangays Abuyo, Cauyan, Lipuga and Pelaway. – Manny Galvez