BDO complying with Cebu City requirements

MANILA, Philippines - Listed BDO Unibank Inc., the country’s largest bank, yesterday said the city government of Cebu has refused to accept the bank’s payments for local taxes and fees amid its long standing feud with Mayor Tomas Osmeña.

In a statement, the bank owned by retail and banking magnate Henry Sy said it has complied with all the requirements of the city government.

“We have complied with the requirements but, despite that the city government has refused to accept payments for local taxes and fees, and issue the permits contrary to what they did in the past. We have made the necessary arrangements for the clients to be serviced in alternative locations,” BDO said.

The listed bank apologized to affected clients of the 26 BDO branches in Cebu City.

“We would like to apologize for whatever inconvenience the recent threat of branch closures in Cebu City has created,” it added.

Early last month, Osmeña filed a complaint against BDO – Magallanes branch for alleged tax fraud before the Office of the City Prosecutor.

According to Osmeña the gross annual revenue of P400,000 by the BDO – Magallanes branch was not even enough to pay its bank manager. This means, the mayor said, the establishment is only earning around P30,000 per month.

The complaint against the country’s largest bank include “other deceits” and falsification by private individuals” under the Revised Penal Code and violation of the City Tax Ordinance.

BDO said the issue has no bearing on the bank’s operations.

“This is a local issue and has no bearing whatsoever on the operation of the Bank as a whole,” BDO said.

BDO has one of the largest distribution networks, with more than 1,100 operating branches and over 3,600 ATMs nationwide. It also has 26 overseas remittance and representative offices in Asia, Europe, North America and the Middle East.

The bank successfully raised P60 billion from a recently concluded stock rights offering.