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MANILA - The Department of Finance has secured a temporary restraining order against the local government of Surigao City on its scheduled auction of equipment and machinery situated in Nonoc Island.
In a statement, the DOF on Monday said the Court of Appeals issued a TRO against the Surigao City government on July 13, preventing the local government unit from pursuing the auction for 20 days.
The Appellate Court also ordered Surigao City to "show cause" why a writ of preliminary injunction should not be issued against it.
The DOF said the equipment of Philnico Industrial Corp. have become the national government's property since 1999, and thus cannot be sold to satisfy the company's tax deficiency.
“Despite such classification, the city government has persisted in assessing real property taxes,” the DOF said.
Said properties have been subject to litigation, with the Surigao City local government continuing to assess real property taxes against the company for years 2000 to 2010.
The local government initially scheduled the auction of the assets on September 19, 2011 but was stopped by the DOF following its application for petition for prohibition was granted.
“Despite the pendency of the case, the city government, through city treasurer Sarah Yamit, had again scheduled an auction sale on 16 July 2012,” the DOF said.
Philnico turned over the said equipment to the national government in 1999. The said equipment formed part of the $263.8 million share sale transaction between the two parties in 1996. Of the total amount, only $1.25 million has so far been paid to government.
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