Firm settles tax dues to avoid closure

CEBU, Philippines — Construction firm J.E. Abraham C. Lee Construction and Development Inc. (JEALCDI), the owner of the bunkhouse in Barangay Lahug, Cebu City, has reportedly settled its tax liabilities for 2014 to 2016 amounting to over P300,000 yesterday afternoon.

The firm, in its Facebook post, said it paid P300,568. 50 in taxes to the Cebu City government.

City Treasurer Veronica Morelos earlier 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.

The firm attributed the tax delinquency to its records’ “error and discrepancy.”

"With errors and discrepancy in computation of taxes due in 2014 to 2016, we have had these reviewed by a new external auditor since (fourth quarter of last year) 2017Q4 . The audit and subsequent reassessment have yet to be completed,” the firm’s Facebook post read.

Mayor Tomas Osmeña tagged JEALCDI as “tax evader.”

The mayor threatened to shut down the construction firm because of several violations, including the non-payment of business taxes.

Bunkhouse ‘ban’ slammed

Meanwhile, Osmeña’s plan of banning the construction of bunkhouses did not sit well with some Barug Team Rama councilors.

Councilor Jocelyn Pesquera said construction firms build bunkhouses to provide workers, who are from the far-flung areas, temporary shelter.

“That’s where ang ilahang mga tawo, ilahang temporary papuy-on. You know, dili lalim with the present situation that we have a traffic problem, importante kaayo sa construction company nga ang ilahang mga tawo inig alas 8 or the start of work naa na dayon,” she said.

Aside from shelter, she said, it would help reduce the daily expenses of construction workers.

“And then dako na kaayong tabang sa empleyado. Just imagine pila nag cost pauli and kung mag-abang, dako kaayo na nga tabang,” she said.

Pesquera said though construction firms must follow the safety standards and comply with the necessary construction permits to avoid a repetition of last Tuesday dawn’s incident when a four-story bunkhouse on Archbishop Reyes Avenue in Barangay Lahug collapsed, leaving five people dead and 55 others injured.

Osmeña said Wednesday that he is considering banning the construction of bunkhouses in the city, saying “it’s a real danger.”

For his part, Councilor Raymond Alvin Garcia said it is not a solution to the problem.

“Dili sad na madala, the solution is not to ban bunkhouses, the solution is to ensure that these bunkhouses are safe for occupancy,” he said.

Ex-officio Councilor Phillip Zafra, Association of Barangay Council president and Tisa barangay captain, said the Office of the Building Official (OBO) should monitor the construction of bunkhouses to ensure that all contractors complied with the safety standards.

OBO Chief Josefa Ylanan said JEALCDI was able to beat the deadline and submitted yesterday afternoon its incident report to her office.

The firm was given a week to explain in writing about the incident.

Ylanan said she will review the letter Monday and determine the next course of action.

OBO earlier suspended all the developments undertaken by the construction firm for its alleged failure to secure a permit for the construction of its bunkhouse. (FREEMAN)