Aboitiz seeks TRO on auction of assets

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    Aboitiz Power Corp. said its subsidiary Luzon Hydro Corp. (LHC) filed another petition to enjoin the local government of Alilem in Ilocos Sur from auctioning its real properties in the municipality.

    In a disclosure to the Philippine Stock Exchange, Aboitiz Power said the second petition seeks for the issuance of a temporary restraining order (TRO) and preliminary injunction on the notice of real property tax (RPT) delinquency from Alilem seeking to collect a total of P82.3 million in unpaid RPT and accrued penalties for seven properties, covering the period 2004 to September 2019.

    Earlier this month, LHC secured a TRO against the same municipality for a different case of alleged RPT delinquency worth a total of P446.02 million in unpaid taxes and accrued penalties from 2002 to August 2019.

    The company is challenging the local government unit’s valuation, citing the enforcement of the executive orders issued by the Office of the President directing the reduction of RPT on property, machinery and equipment actually and directly used by independent power producers under build-operate-transfer contracts.

    They argue the provision cover all liabilities for RPT, including any special levies accruing to the special education fund for calendar year 2017 and prior years.

    LHC also said  the Power Sector Assets and Liabilities Management Corp. has issued a letter to the municipality of Alilem urging it to reconsider the auction of the levied assets, in consideration of the ownership rights and interest of the government over the assets.

    At present, the Aboitiz Group and its partners produce 4,471 megawatts of total net sellable capacity of electricity from both thermal and renewable power sources.