After bunkhouse mishap: Firm faces closure over business tax woes

CEBU, Philippines — Following the bunkhouse accident Tuesday that killed five construction workers, Cebu City Mayor Tomas Osmeña has threatened to shut down the construction firm because of several violations, including alleged non-payment of business taxes.

Osmeña accused JE Abraham C. Lee Construction and Development Inc. as another “tax evader.”

“We are going to stop his business, not only bunkhouse, we are going to stop his business. They have not filed any building permit… These are the tax evaders,” Osmeña told reporters.

City Treasurer Veronica Morelos said the construction firm has renewed its business permit this year. However, the record shows that it has tax delinquency amounting to P351,000 but has already  made a partial payment of P87,000.

Morelos could not give the period of which the delinquency is covered because their computer system automatically adds the amount. She said they are also verifying the other existing account of the company, which was not renewed nor retired since 2001 up to present.

“Actually, there is another record under JE Abraham C. Lee Construction Inc. unya lahi ang address, so kini amoa pani i-verify if different bani sa JE Abraham C. Lee Construction and Development Inc.,” Morelos said.

She said if the other account is already retired, the company should have informed the city government.

“Actually, if that business is no longer holding office in the business or ilaha na ning gi-retire, they should inform the city and since 2001 duna na sila’y penalties kay mahulog naman ni og late retirement,” she added.

Osmeña announced yesterday that his office is drafting the closure order. He said the owner of the company may continue doing business in the city but not construction firm.

Cebu City Attorney Joseph Bernaldez said the mayor has the discretion to close business establishments that are violating the law.

“It is the discretion of the mayor to order the closure of a particular business if the permitee violates conditions under which the permit was issued,” he said.

The Freeman tried to get the reaction of the company but no official was authorized to issue a statement. The company, however, posted on Facebook a picture of its business permit and receipt showing it has renewed its permit as real estate developer and paid P436,124.83.

Last Tuesday, five construction workers died and 55 were injured after the bunkhouse, which housed the workers of JE Abraham C. Lee Construction and Development Inc. and its subcontractors, had collapsed.

The Office of the Building Officials discovered that the bunkhouse did not have building permit. Building officials said bunkhouses are also required to secure temporary permits.

It was also found out by the Department of Labor and Employment that the company has violated several labor standards like non-payment of mandatory benefits for its workers, including SSS, Pag-IBIG, and PhilHealth. (FREEMAN)