CEBU CITY, PHILIPPINES — The executive department of the Cebu Provincial Government is set to pursue its legal battle with Apo Land and Quarry Corporation (ALQC) after the Provincial Board effectively rejected the proposed P211.56-million compromise agreement, returning it to the Office of the Governor for further evaluation and clarification.
The Sangguniang Panlalawigan (SP), during its regular session on Monday, voted to return the proposed resolution authorizing Governor Pamela Baricuatro to enter into a compromise deal with ALQC.
The resolution, which carried a proposed settlement amount of P211.56 million from an original assessment of over P1.2 billion, was formally received by the Executive Department on Tuesday.
Officials from the executive branch said the development effectively clears the path for the case to proceed in court.
“Actually, wala man gi-specify, pero this is already a rejection,” said Assistant Provincial Administrator Aldwin Empaces.
“Ang basa namo ani is from the side of the Governor, mao naman ni…so the case will continue. Padayon ang kaso,” he added.
Empaces said the lack of a definitive approval from the Board leaves the executive with little choice but to proceed legally.
“Ang problema man gud sa Sanggunian, wala man silay decision…ongoing man gud ni nga case, so technically unsa may position sa gobyerno,” he said.
He stressed that the compromise agreement was initially pursued to avoid prolonged litigation.
“Ni-enter gani tag ingon ani para dili na mo-irog ang case. Unya mao naman ni, so ipadayon na lang jud ang kaso then let the court decide,” Empaces said.
Meanwhile, Atty. Restituto Arnaiz explained that negotiations between the Province and ALQC were part of a court-mandated mediation process.
“Mandated ni nga the parties would enter into a negotiation sa Philippine Mediation Center,” he said.
He added that a series of discussions had already taken place between ALQC and the Provincial Legal Office (PLO).
With the compromise deal now in limbo, Arnaiz said the case timeline continues to run.
“Karon ang position ni Gov. Pam kay pending man ang kaso, then ang mga judge di pud maghuwat kay naa man silay deadline,” he said.
A representative from the PLO confirmed that court proceedings will continue as scheduled.
“Ang next hearing next week is ongoing presentation of evidence,” the PLO representative said.
Earlier, ALQC filed a civil case against the provincial government questioning the 2022 tax assessments amounting to P1.2 billion. The case is now pending before the Regional Trial Court (RTC) Branch 19 in Cebu City.
Vice Governor Glenn Soco clarified that the Board’s action was within its mandate to review contracts and agreements.
“It’s compelled already of the executive department how they want to proceed, but the action of the Board is limited to the proposed compromise agreement of P211 million—either we approve it or disapprove it. In this case, we returned it because we found it unacceptable to the Provincial Board,” Soco said.
Soco underscored the importance of safeguarding public funds.
“When you talk about taxes and fees, that’s a very delicate matter…kwarta man na sa katawhan,” he said.
He also emphasized the role of checks and balances between the executive and legislative branches in local governance.
The Committee on Ways and Means, chaired by Board Member Michael Villamor, identified key concerns that led to the return of the proposal. Among these was the absence of authority from the SP for the Governor to negotiate or enter into a compromise agreement.
Villamor said this raised procedural questions, especially given the magnitude of the amount involved.
“Nakalitan lang ta nga ni-come up silag amount…it could have been better if, at the start, nangayo lang silag authority to negotiate,” he said.
The committee also cited the significant gap between the original assessment of P1.218 billion and the proposed settlement of P211.56 million.
Villamor said some components of the computation—particularly monitoring fees, environmental enhancement fees, and penalties—were substantially reduced.
“Again, ato na lang giuli sa ilaha for further review and possible renegotiation,” he said.
The province’s claims against ALQC stem from quarry-related charges under the Cebu Provincial Revenue Code of 2008, including extraction taxes, monitoring fees, environmental enhancement fees, as well as surcharges, interests, and penalties.
The committee also highlighted the existence of pending court cases involving portions of the assessment. It noted that while compromise agreements are legally recognized, they must be carefully weighed against potential revenue losses and legal risks.
Villamor stressed that the Board’s action was not a rejection of compromise as a concept.
“Wala jud tay problema aning compromise…basta fair lang jud sa tanan,” he said.
He also dismissed allegations of political motivation behind the decision.
“Dili, dili gyud… we are just protecting the interest of the people of Cebu,” Villamor said.
‘Political circus’
For the executive branch, however, the Board’s action effectively shifts the focus back to litigation.
Empaces maintained that there was no requirement for prior authority to negotiate, unless specified by ordinance.
“No procedure for negotiation nga nag-require jud nga mangayo og authority,” he said.
He also criticized the process, warning that it risks turning into a “political circus rather than a legal matter.”
Still, he emphasized that the governor’s actions were grounded in law.
“Gibuhat ni Gov. what is legally bound, legally sound, and rightful,” Empaces said.
Garcia siblings’ reaction
Former governor Gwen Garcia publicly lauded Soco and members of the Sangguniang Panlalawigan for returning the proposed compromise agreement.
In a brief Facebook post, Garcia expressed support for the Board’s action, writing: “To the Cebu Vice Governor and members of the Provincial Board — bravo!” without further elaboration.
Her brother, former Third District congressman Pablo John Garcia, also issued a statement congratulating the Board for what he described as rejecting a “P1-billion tax break” in favor of ALQC.
“I congratulate my friends at the Provincial Board of Cebu for rejecting the P1-billion tax break…Nisinggit ang katawhan, ug kamo naminaw,” he said.
Pablo John questioned the fairness of granting a substantial discount to a large corporation.
“Ngano’ng hatagan man hinuon ang usa ka adunahan nga korporasyon og 80 percent nga diskwento, while ordinary taxpayers continue to pay their dues without relief?” he added.
He also warned that approving the deal could have exposed Board members to legal risks if the agreement were later deemed “grossly disadvantageous to the government.”
| Written by Jonnavie Villa, Staff Member/FPL
