Court set to decide on pawnshop’s closure

CEBU, Philippines — Representatives of the Cebu City government and the Jerome’s Pawnshop will meet today in court to hear the petition the latter has filed questioning the closure of their nine branches here.

In a 10-page petition, Diogenes Avila, owner of the pawnshop, asked the court to issue an injunction with temporary restraining order and/or writ of preliminary injunction to prohibit the city government from proceeding with the closure.

Respondents of the case are Mayor Tomas Osmeña and the Office of the Prevention, Restoration, Order and Beautification Enhancement (PROBE).

PROBE Chief Raquel Arce said her office is just implementing the closure order on the nine branches of the pawnshop for allegedly operating without registration from the Bangko Sentral ng Pilipinas.

“I believe moot and academic na ang ilang petition nga TRO kay na close naman gyud nato ilang mga establishments last March 8,” she told The FREEMAN.

In the petition, Avila said he has been “honestly, diligently, and religiously” paying the taxes to the city since it started its business in 2002.

He said Osmeña granted the request of the management of the pawnshop for the suspension of the closure until June 30 this year to give them time to comply with the BSP’s requirements provided that the taxes are paid.

Despite the suspension noted by the mayor in one of the closure orders, Avila said he received a five-day notice or warning to voluntarily close operations of the branches from PROBE.

As of now, Avila admitted that his staff is currently processing all the requirements with the BSP which was already sent last February 26 this year.

Avila said he already paid for the mayor’s business permit since it is one of the requirements of the BSP but the city has not released its permanent permit yet.

“Respondent Mayor is seemingly using the City Licensing Office and the Respondent PROBE to pressure, harass, and inconvenience business owners who are known allies of the opposition,” he said.

Avila said the mayor and PROBE are not authorized to close his businesses, the suspension of the closure written by Osmeña has not lapsed, and that the pawnshop management has been diligently paying business taxes since business operation started.

Avila cited in the petition Presidential Decree No. 114 or the Decree Regulating the Establishment and Operation of Pawnshop confers upon the Central Bank the authority to impose sanctions for any violation respecting the operations of pawnshop business.

He said that the management has not received any closure order against the pawnshop from the Central Bank for the non-compliance of the BSP License to Operate.

“It is respectfully submitted that as a taxpayer and business operator that serves a large clientele, Petitioner (Avila) stands to suffer with business losses if the closure will be consummated and implemented as the same is riddled with irregularity,” read a portion of the petition. — GAN (FREEMAN)