Capitol stands firm on P211-million settlement with Apo

Local

THE Cebu Provincial Government stood by its proposed P211.56-million compromise with Apo Land and Quarry Corporation (ALQC), stressing that the agreement follows established practices in resolving disputed tax assessments and comes after months of court-supervised mediation.

Assistant Provincial Administrator Aldwin Empaces said this is not the first time the province has entered into a compromise settlement with a large mining firm.

In an interview, Empaces cited a 2023 agreement with Dolomite Mining Corporation, which reduced a P855.9-million tax assessment to P56.31 million.

Empaces noted that Vice Governor Glenn Anthony Soco, who questioned the ALQC settlement, authored the resolution approving the Dolomite Mining Corporation agreement when he was a provincial board member.

Mediation with ALQC began in August 2025 through the Philippine Mediation Center.

During the process, ALQC submitted multiple offers: P6.18 million in August, P10 million in September, P51.56 million in October, and P150 million in December.

The provincial government rejected each offer and revised its billing statement to P645.29 million after removing extraction taxes, surcharges, and correcting Environmental Enhancement Fee computations.

The parties finally agreed on a settlement of P211,560,530.35 in January 2026.

Officials explained that the compromise excludes extraction taxes because ALQC operates on private land under valid Mineral Production Sharing Agreements and already pays excise taxes under the National Internal Revenue Code.

The Environmental Enhancement Fee was fully retained, and prescribed surcharges and interests were reduced by 80 percent, while unprescribed penalties remain payable.

Gov. Pamela Baricuatro’s legal counsel, Atty. Resituto Arnaiz, said mediation is a routine part of court proceedings to help both parties resolve disputes efficiently and avoid lengthy litigation.

He added that the compromise still requires approval from the Cebu Provincial Board.

Empaces emphasized that the settlement allows Cebu to recover a larger portion of its assessed claims compared with past agreements.

The P211.56-million compromise represents 17.36 percent of the original P1.218-billion assessment and 32.79 percent of the revised P645.29-million billing amount.

By comparison, the Dolomite Mining Corporation settlement recovered only 6.58 percent of its total assessment.

“This is a win for the environment and a win for Cebu,” Empaces said.

The Sangguniang Panlalawigan will review the settlement through a joint committee chaired by Board Members Nelson Mondigo and Michael Villamor.

Soco said the board will examine the legal basis, the computation method, and the potential impact on other quarry operators before making a decision.

Board Member Celestino Martinez III and other members stressed the importance of transparency and legal defensibility, noting the reduction from the original assessment—about 83 percent—must be carefully evaluated.

The dispute covers ALQC’s tax liabilities from 2009 to 2025, including monitoring fees, Environmental Enhancement Fees, surcharges, interest, and penalties under the Cebu Provincial Revenue Code.

Officials said the compromise allows the province to collect revenues promptly without waiting for a final court ruling.(MyTVCebu)