Fate of Panelco III uncertain

By October 20, 2014Headlines, News

BANK DEPOSITS GARNISHED

 

LINGAYEN—After the Court of Tax Appeals recently decided to allow the Bureau of Internal Revenue to garnish assets of the Pangasinan Electric Cooperative (Panelco) to cover the latter’s unpaid taxes, the ability of the electric cooperative to serve

16 towns and one city in eastern Pangasinan has become uncertain.

A proposal for the National Electrification Administration (NEA) to take over the management of the cooperative has already been raised after BIR has started garnishment process of its bank deposits to pay for its accumulated tax liability estimated at P400 million.

The situation has prompted the sanggunian panlalawigan to invite Panelco III officials in their Question Hour Monday to shed light on this matter.

Sixth District Board Member Ranjit Ramos Shahani said the plan to ask the National Electrification Administration (NEA), with the consent of BIR, to take over the management and operation of Panelco III based in Urdaneta City is already being discussed.

Panelco III has proposed to BIR to pay P5-million a year but Shahani has expressed doubt that the government collection agency would accept the compromise but the issue that must be resolved soon is whether the current leadership is still capable of managing the situation or should NEA be asked to take over to restore the financial viability of Panelco III.

“This is a big problem and we don’t want our consumers to be affected,” Shahani said.
Meanwhile, Sixth District Board Member Alfonso Bince Jr. said the BIR has already reportedly garnished P30-million of Panelco accounts from the Land Bank of the Philippines.

He said the garnishment of Panelco III’s bank assets will inevitably affect its operations

Fourth District Board Member Mojamito Libunao Jr. said he could not understand how Panelco III could have accumulated P400-million in tax liability.

Engr. Allan Casem, officer-in-charge Panelco III general manager, said their legal counsel raised questions on the accuracy of the computation of the liabilities but these were ignored.

He, however, assured the provincial board that the management will settle its tax obligations while continuing to serve its member-consumers.

Bince said a private corporation is eyeing to acquire Panelco III but Casem denied knowing anything about it.

He told the board the capital assets of Panelco III is P160-million with total receivables of about P500-million. He, however, could not say how much is Panelco III’s total payables and other financial obligations.

Panelco III’s unpaid tax woes started in 2009 yet, sources said.

Panelco III has been operating since 1978 or about 36 years and serves part of third district and the fifth and sixth districts of Pangasinan. The provincial board also invited BIR officials based in Urdaneta City but Revenue District Officer Nasrollah Conding begged off and said he has been directed by the regional office not to discuss the case. (Tita Roces)

Back to Homepage

Share your Comments or Reactions

comments

Powered by Facebook Comments