Misamis Oriental exec suspended for one year

OMBUDSMAN Conchita Carpio Morales has ordered the one-year suspension of Local Treasury Operations Officer IV Marilou Rivera of Misamis Oriental, after she was found guilty of Oppression and Neglect of Duty in connection with the anomalous issuance of warrants of garnishment against a private firm in 2014.

 Investigation disclosed that the provincial government issued an assessment against Pilipinas Kao, Inc. (PKI) for its unpaid real property taxes for the years 2002 to 2013 totaling P631.5 million.  In a letter dated 26 September 2013, PEZA Manager Procolo Olaivar explained that the Japanese firm is exempted from paying local taxes, including real property taxes pursuant to the Special Economic Zone Act (Republic Act No. 7916).  

Notwithstanding this, Rivera issued a warrant of levy against PKI in October 2013 in the total amount of P244.7million.  In addition, Rivera also issued warrants of garnishment in January 2014 against the firm’s bank accounts to cover the assessed amount of P631.5 million. 

 According to Ombudsman Morales, “respondent’s issuance of the Warrant of Garnishment against PKI’s bank accounts appear to be improper.” 

 In its Decision, the Ombudsman explained that “the records show that the provincial government of Misamis Oriental issued 152 warrants of levy on PKI’s properties that were considered as delinquent that could have readily and sufficiently satisfied the purportedly unpaid real property taxes” as “PKI’s industrial machinery alone had a market value of P2.9 billion.” 

 “Hence, there was no need to freeze PKI’s accounts and hamper its business operations,” the Ombudsman added in the Decision.  

 In a letter to the Office of the Ombudsman dated 07 August 2015, PEZA Director General Lilia De Lima mentioned that “PKI is liable only for P164.1 million under R.A. No. 7916 and that said amount was already remitted to the provincial government.” 

 Oppression is an act of excessive use of authority which has been defined as abuse of authority or misuse of one’s authority in a wantonly and capriciously excessive or extravagant manner contrary to the natural or legal rules. On the other hand, Neglect of Duty is the failure to act in a situation where there is a duty to act, not inadvertently but willfully and intentionally, with a conscious indifference to consequences.