OLIVAREZ And City Hall Officials: No Basis On Corruption Charges

PARANAQUE City Mayor Edwin Olivarez has maintained that the compromise agreement they entered two years ago with D.M. Wenceslao Group involving the latter's tax obligations was lawful and advantageous to the city government.

Mayor Olivarez issued the statement in reaction to reports that a graft case was filed against him and other officials of Paranaque city before the Office of the Ombudsman relative to the issue.

He also pointed out that the Supreme Court has already resolved the matter on its February 24, 2014, ruling in G.R. No. 198281 entitled “City of Parañaque vs Wendel Holdings Company, Inc. and D.M. Wenceslao and Associates, Inc., approving the compromise agreement on November 12, 2013.

In its ruling, the SC said, “thus the compromise agreement dated November 12, 2013 is hereby APPROVED. Herein parties are ORDERED to strictly and faithfully comply with said Compromise Agreement. This case is deemed TERMINATED.”

The case stemmed from the Memorandum of Agreement on October 13, 2008, entered by then Mayor Florencio M. Bernabe Jr. with the developers.

It can be recalled that prior to the execution of the compromise agreement, numerous civil and administrative cases were filed by both parties against each other before the different courts.

To put an end to the disputes, the parties executed the MOA, the salient points of which the parties agreed to credit fifty percent (50%) of Php390,361,661.62 overpaid by the Wenceslao Group in their future real property tax liabilities , or until the said 50%, or Php195,180,830.81, shall have been consumed and fully applied.

The parties also further agreed that the Wenceslao Group shall avail of the tax holidays provided for in City Ordinance No. 07-11.

The MOA signed on October 13, 2008 was subsequently approved by the Court of Appeals in a decision on May 25, 2011 or almost three years later.

However, the city government moved to reconsider said decision on the ground that said MOA was not approved by the SangguniangPanlungsod of Parañaque.

The city government’s motion was denied by the CA in its resolution last August 23, 2011 after which the decision was elevated to the SC.

During the pendency of the appeal before the Supreme Court, the city government now represented by incumbent Mayor Edwin L. Olivarez, and the Wenceslao Group came up with a proposed amicable settlement which agreement was then submitted to the SangguniangPanlungsod of Parañaque for approval.

On November 7, 2013, the SangguniangPanlungsod approved the proposed Memorandum of Agreement through Resolution No. 13-076, and authorized Mayor Olivarez to sign the same.

In compliance to said resolution, Mayor Olivarez signed the compromise agreement on November 12, 2013 which has essentially the same terms and conditions with the original MOA, except that the parties agreed that the provisions granting the Wenceslao Group tax holidays under Ordinance No. 07-11 should no longer be effective.

In approving the compromise agreement, the SangguniangPanlungsod, on whom the duty to levy and collect taxes to raise revenue is vested, determined that the same is advantageous to the government.

Thus, Mayor Olivarez stressed that the approval of the Supreme Court on the subject Compromise Agreement totally belies any and all allegations of corruption charges and disadvantageous undertaking against the government.