Sugbo News - PMSC EXECS APPEAR BEFORE GOV AMID LEGAL CONTROVERSY

PMSC president Satoshi Okamoto met with Gov. Gwen and the Capitol’s legal team in what appeared to be a gesture of reaching out to settle outstanding obligations.

PMSC EXECS APPEAR BEFORE GOV AMID LEGAL CONTROVERSY

May 15, 2024

In a significant turn of events, officials of the Philippine Mining Service Corporation (PMSC) appeared before Gov. Gwen Garcia to address long-standing tax and environmental disputes with the Provincial Government.

This development comes after years of legal battles and a recently issued cease and desist order that halted PMSC’s mining operations in Alcoy, southern Cebu.

PMSC president Satoshi Okamoto met with Gov. Gwen and the Capitol’s legal team in what appeared to be a gesture of reaching out to settle outstanding obligations. Governor Garcia expressed her frustration during the meeting, emphasizing that the company’s delayed approach had exacerbated the situation.

The governor likened it to a chess game where PMSC now finds itself in a checkmate position. She stressed that if PMSC had engaged with the Provincial Government in good faith earlier, the situation could have been resolved without escalating to the current level.

The latest cease and desist order for PMSC issued by Gov. Gwen came after as reinforcement to the Court of Appeals’ (CA) decision that upheld the validity of the Capitol’s previous executive orders halting the mining firm’s operation for failing to pay its tax obligations to the province and address environmental violations.

CA’s upholding of the order bolstered the Provincial Government’s position and added pressure on PMSC to comply with the legal demands of the Capitol.

Gov. Garcia highlighted the contrasting approach of Dolomite Mining Corp. (DMC), the supplier of raw materials to PMSC. DMC opted to settle its tax obligations with the Provincial Government, setting a precedent for cooperative resolution.

Had PMSC followed DMC’s example in negotiating with the Capitol, Gov. Garcia said the parties wouldn’t be in this impasse.

The meeting on Wednesday, May 15, marked a potential turning point in the prolonged conflict between PMSC and the Provincial Government. While it remains to be seen how the negotiations will unfold, the company’s willingness to engage could pave the way for a settlement that addresses both tax and environmental concerns.

Based on the data presented by provincial treasurer Roy Salubre during the meeting, PMSC owed the Capitol a total of P514.878 million in tax dues from 2008 to 2023. 𝐒𝐮𝐠𝐛𝐨𝐍𝐞𝐰𝐬 learned that due to discrepancies, this figure could still go up.

For now, Gov. Garcia’s Memorandum No. 24-2024 that reinforced the CA decision remains in effect.

“Considering the nullification of the order dated 26 April 2023, and the validity of Executive Orders 25-2020, 25-B-2020, and 7-2023, the Philippine Mining Service Corporation is hereby ordered immediately to cease and desist all processing, selling, and transporting of dolomite and associated quarry resources,” part of that May 2 memorandum reads.

The governor’s memorandum also ordered the Municipality of Alcoy, Philippine National Police, Mines and Geosciences Bureau, and DENR to strictly enforce its order. The Philippine Coast Guard was also tasked to ensure that no sea vessel docks at PMSC’s pier until further notice. | CL

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