Criminal and administrative complaints have been filed against Pasig City Mayor Victor Ma. Regis "Vico" N. Sotto and two others before the Office of the Ombudsman (OMB) for allegedly giving a 100 percent tax discount to Converge ICT Solutions, Inc.
Complainant Ethelmart Austria Cruz asked the OMB to charge Mayor Sotto, together with Business Permit and Licensing Department (BPLD) head Melanie B. De Mesa and City Administrator Jeronimo U. Manzanero with violations of Section 3(e) of Republic Act No. 3019, the Anti-Graft and Corrupt Practices Act, and Section 4 Paragraphs (a) and (b) of RA 6713, the Code of Conduct and Ethical Standards for Public Employees.
Cruz also asked the OMB to hold them liable for the administrative offenses of grave misconduct, gross neglect of duty, conduct prejudicial to the best interest of the service, and dishonesty.
The complaints stemmed from the reported misdeclaration of the internet and digital services provider Converge ICT Solutions, Inc. of its property and employees, since the firm declared in 2018 that its office space is only five square meters and that it had only four employees.
But the complaints stated that based on inspection reports of the BPLD dated July 18 and Sept. 19, 2022, it was learned that Converge had been misdeclaring the actual size of its office and the number of its employees. Converge actually has 1,901 employees and occupies four floors of office space with a total of 9,037.46 square meters, the complaints alleged.
The complaints claimed that BPLD then issued notices dated Aug. 18 and Sept. 8, 2022, and a Tax Order of Payment was issued on Oct. 18, 2022 requiring Converge to pay a total amount of P3,670,340.11 with a total surcharge of P447,106.77 and a total interest amount of P979,570.27 representing deficiencies in the payment of fees and licenses.
However, the complaints alleged that the Office of the Mayor sent a letter on Oct. 26, 2022 addressed to Solomon R. Joya, head of Work Premises and Fleet Management Group of Converge, granting the company 100 percent discount on the penalties. This letter essentially removed all the tax penalties due to the city government of Pasig, the complaints also claimed.
Cruz alleged that the circumstances surrounding the approval of the tax discount in favor of Converge constitutes unwarranted benefits, and Sotto and the other respondents were accused of patently showing preference to the company in the discharge of their duties.
Cruz added that Sotto's authority only extended to the grant of a deduction from Converge's amount of obligation, and he and the other respondents were only authorized to compromise 75 percent of a delinquent taxpayer's assessment based on Section 359 of Ordinance 51.
The complainant said the ordinance states that the city mayor or city treasurer or their duly authorized representative are authorized to enter into a Compromise Agreement with delinquent taxpayer provided at least 25 percent of the total delinquency including interest, surcharges, and penalties are to be paid on the date of the execution of the Compromise Agreement.
But in this case, Cruz alleged that Converge was granted 100 percent discount and, thus, Mayor Sotto and the other Cruz said that Sotto and the others' actions "should be seen for what it is, a blatant support to a private company's fraudulent acts against the local government."
"Clearly, respondent Mayor Sotto illegally went beyond his authority as he does not have the authority to grant a full waiver of penalties, but may only grant discounts on the surcharges and penalties," Cruz alleged.
"In fine, respondent Mayor Sotto, in connivance with the other respondents connived to reward an erring company - instead of being punished for its fraudulent acts, the respondents deemed it proper to grant additional benefits to Converge, in the process of defying logic, and violating the law which they themselves swore to uphold," she further alleged.
None of the respondents could be contacted for comments at the time of posting of the story.