TAMPAKAN, South Cotabato (MindaNews / 16 September) – The local government unit (LGU) of Tampakan, South Cotabato revoked the mayor’s permit of Sagittarius Mines, Inc. (SMI), developer of Southeast Asia’s largest untapped copper-gold reserve, due to alleged fraud and misrepresentation of its business status.
Mayor Leonard Escobillo cancelled the mayor’s permit he issued to SMI that serves as a business permit to operate in the locality.
SMI has been pursuing the controversial $5.9 billion Tampakan project, a near-the-surface minefield which was launched here in January 2003.
In a press conference on Friday, the mayor stressed he was implementing the Municipal Tax Code of 2012, which allows the local chief executive to revoke or deny business permits if the applicant deliberately makes false statements in its application.
“There’s nothing personal in this case. We are just doing our obligation, which is to implement our tax ordinance (to increase local revenues),” he told reporters.
The notice of revocation of SMI’s mayor’s permit has been served to the company’s offices here and in Polomolok, South Cotabato by the local government on Thursday, Escobillo said.
The core farm of SMI in Barangay Liberty here was padlocked as a result of the cancellation of the firm’s business permit, Escobillo said.
The revocation came on the heels of a petition filed by SMI against the Tampakan LGU before a local court asking for a review and issuance of a temporary restraining order against the collection of P397 million worth of accumulated taxes and surcharges demanded by the local government from the company.
Stressing that the LGU is not zeroing in on SMI, Escobillo said that all business establishments have been subjected to a tax audit in a bid to increase local revenue generation.
Last month, some business establishments with deficiencies already settled their tax obligations with the local government, he said.
Nena Santos, legal counsel of the Tampakan LGU, stressed the revocation of SMI’s mayor’s permit “has nothing to do” with the case filed by the firm against the local government.
SMI made a false statement in its application for mayor’s permit that’s why the local government cancelled it – the tax case is a different matter, Santos said in the same press conference.
“The company falsely claimed that they are already into manufacturing,” she said, noting the firm has not yet gone into commercial mining operations.
Santos said the company’s gross receipts it declared with the LGU were based on the sales of unserviceable assets such as tables, computers, vehicles and other equipment, which can be considered as other income but not due to the company’s mining operation.
MindaNews sought a comment from SMI but the firm has yet to reply as of early evening on Friday.
From 2004 to 2011, SMI classified itself as a general engineering contractor but changed its status to a manufacturer in 2012, Santos said.
But according to Escobillo’s revocation notice, the assessment of the Municipal Treasurer’s Office classified the firm as still a general engineering contractor and not a mineral exploration manufacturer as claimed by the company.
The mayor said that there are available remedies for SMI under the law and the local ordinance for the lifting of its cancelled mayor’s permit, but he did not elaborate.
Escobillo declined to give further comments on the P397 million taxes and surcharges the LGU is demanding from SMI, saying the firm already brought it before the court.
Santos said the LGU has 30 days from September 8 to answer the petition lodged by SMI. (Bong S. Sarmiento / MindaNews)