Dychangcos take ‘closure’ issue to court

CEBU, Philippines — The Dychangco Group of Companies is taking all legal steps to address the issues concerning the closure of their businesses while also hoping to have a dialogue with Mayor Michael Rama over the matter.

This came after the Cebu City Legal Office (CLO) requested Rama to issue closure orders to eight establishments in Nivel Hills, Barangay Lahug, all of which are under DGC. These include Cosmopolitan Funeral Homes, Crystal Palace, Dolce Cafe, Belle Fleur Styling Shop, Ori Izakaya Japanese Restaurant, Belini/Imagene Bar, Holly Dawn Home and Design and Anzari Restaurant.

“We are taking all legal steps to address the issue and we are open to dialogue with Mayor Michael Rama,” a statement from DGC read.

DGC’s Renato Dychangco Jr., in a separate statement, however, said they are not allowed to reveal the merits and details of the case at the moment as per sub judice rule of the court.

Dychangco said their family is heartbroken that this issue came up, just a few days before Christmas, a time that “should have been a joyous time for our families and our employees.”

“Our primary concern is to ensure that our employees, who we treat as part of our family, can celebrate Christmas without worry,” added Dychangco, as they take legal steps to appeal the decision.

The DCG group has 300 employees whose jobs stand to be threatened by the impending closures.

“The Dychangco Group of Companies (DGC) has been working for Cebuanos for the last 73 years. Our family business has provided jobs and services contributing to the vibrant economy of Cebu City,” said Dychangco Jr.

This issue stemmed from a complaint by Santos Realty Investment Corporation which alleged that the eight establishments under DCG operated on a property without their consent.

BPLO conducted its own investigation and assessment and recommended on March 25, 2022 that both parties have a possible settlement but did not prosper.

After the expiry of the 90-day period, the DGC reportedly was already without a business permit, said former Business Processing and Licensing Office head Jared Limquiaco in a final recommendation letter addressed to Rama on June 28, 2022.

Limquiaco also said that the establishments failed to produce the documents showing authority to use the property, which is a requirement for the issuance of a business permit.

A legal opinion from the City Legal addressed to Rama also showed that they received the endorsement from the new BPLO head, Andrew Bautista, in relation to the final recommendation of Limquiaco.

A request for reconsideration dated September 12, 2022 was filed by the DGC which was denied accordingly.

After giving ample time to DGC to submit all that was required of them, the City Legal on December 12, 2022 recommended the revocation of the permit of Anzani, if indeed true, and recommended its closure along with the seven other establishments.

The City Legal stressed that the City’s Tax Ordinance No. LXIX or the Revised Omnibus Tax Ordinance of Cebu City made it clear “that no business or undertaking shall be conducted or operated without the approved business or mayor’s permit having been issued.”

With this, the said establishments had been recommended closed.  (FREEMAN)