THE Monterrosa Development Corporation, a government-owned or controlled corporation with business address at 424 Capinpin Ave. inside Camp Aguinaldo, “has been operating without a business permit from the local government of Quezon City” since 2005, a violation of the Quezon City Revenue Code of 1993.
Based on the 2020 audit of this government firm, it also has no certification of registration with the Bureau of Internal Revenue in violation of the National Internal Revenue Code.
“Thus, possible legal actions may be filed against the MDC and fines and penalties may be imposed by concerned agencies,” the Commission on Audit warned.
The MDC, a wholly-owned subsidiary of the Armed Forces of the Philippines-Retirement and Separation Benefits System (AFPRSBS), has not started commercial operations and was supposed to be dissolved based on the recommendation of its Board of Trustees on October 24, 2000.
In a turnaround in 2013, the Senior Management Committee of the AFPRSBS approved the reactivation of the MDC and the reconstitution of its Board of Directors.
However, in a letter dated October 17, 2019, the Quezon City Business Permits and Licensing Department notified the MDC of its delinquent status and required it to submit the necessary documents for the issuance of an updated business permit.
The assessment of fees by the city government set the cost at P350,000 per year based on MDC’s total assets of P358.99 million.
However, the GOCC’s management said it will have to secure money to pay the required sum and that this would worsen the financial condition of the company.
It disclosed that the MDC has lost a court dispute over ownership of a 150-hectare property in Batulao, Nasugbu, Batangas against a private claimant as well as a bid for a reversal before the Court of Appeals.
The GOCC suggested that it would be more prudent to wait for the decision of the Supreme Court on the same case.
It added that the AFPRSBS has convened an investigation body to determine who among the company’s former officials were responsible for neglecting the renewal of permits.
The COA, however, insisted that the MDC negotiate with the QC government for a possible reduction in the amount of obligations it has to pay for failure to secure the business permit.
