The Iloilo City Government is set to auction off assets in Panay Electric Co. (PECO) to pay for P106 million property tax liabilities and penalties incurred by the power company since 2006.
Iloilo City Mayor Jerry Treñas said the December 12 auction would solve the city government's collection problem with the company.
He said that despite the several demand letters sent by the city government to the electricity company, PECO still refused to resolve its tax scales. As a result, PECO's business license was not renewed this year.
The public auction will focus on the small lands where PECO's electric poles stand, which tax administration department head John Landrillo at the city treasurer's office (CTO) said has a value of P21
CTO said bidding would start at P106,881,685.33. The calculation of the floor price was based on PECO's 13-year total tax liability amounting to P97,164,438. 81, the cost of the sale including documentary stamp tax estimated at P9,716,443.88 and the registration fee of P802.64.
Treñas said he was upset by the statement by PECO Administrative Manager Marcelo Cacho ignoring the complaint he made to the President and the Energy Regulatory Commission (ERC) in connection with the power company's dilapidated poles, some of which caught fire.
"[Cacho] should not address as a small issue the safety and security of the people of Iloilo and damage to state property," Treñas said in a statement.
ERC has sent a technical team to the city to verify Treña's complaint regarding the hazardous electric poles.