MWSS asks appellate court to stop QC from auctioning its properties

11/16/2007

Public utility firm Metropolitan Waterworks and Sewerage System (MWSS) has petitioned the Court of Appeals (CA) to stop the Quezon City government from auctioning off its facilities and assets as payment for P230 milllion in unpaid real estate taxes.

The appellate court gave the parties involved 10 days to submit their respective comments on the petition lodged by the MWSS.

In its petition dated Sept. 26, 2007, lawyers for MWSS asked the appellate court to issue a temporary restraining order (TRO) to restrain the Quezon City government and the Quezon City Assessor’s Office from enforcing warrants of distraint and levy which were issued on Aug. 7, 2007 by the Office of the Quezon City Treasurer.

The MWSS also asked the appellate court to stop the Quezon City government from proceeding with its intended auction on Sept. 27, 2007.

The MWSS claimed it is considered an instrumentality of the government of the republic created by virtue of Republic Act 6234, as amended or the MWSS charter. As an instrumentality of the government, MWSS argued that it is exempt from paying real property tax.

MWSS has jurisdiction, supervision and control over all waterworks and sewerage systems within Metro Manila, the entire province of Rizal and a portion of the province of Cavite.

In its petition, the MWSS argued its properties that are located in Quezon City are intended for public purpose and, as such, are devoted to public use.

As an instrumentality of government, it argued that it is exempt from paying real property tax as it forms part of the public domain.

“The respondents arbitrarily and whimsically classified the MWSS properties comprising of land, machineries and facilities as taxable real properties.

In so doing, respondents committed grave abuse of discretion amounting to lack or excess of its jurisdiction because such properties are unquestionably part of the assets and properties which are intended for public purpose and devoted to public use as these properties are being used for the supply and generation of water. These are presently being administered by the MWSS for and in behalf of the state or the Republic of the Philippines,” the MWSS argued.

“More importantly, these MWSS properties are being held in trust by MWSS on behalf of or for the benefit of the Republic of the Philippines in accordance with its mandate to generate and provide water supply for Metro Manila and its environs. These MWSS properties were specifically reserved by the state for said purpose. As such, these properties form part of the public domain and consequently exempt from taxation,” the MWSS said.

Last Sept. 27, the Special Fifteenth Division of the appellate court issued a resolution granting the issuance of a TRO effective for 60 days. The TRO temporarily stopped the Quezon City government from pushing through with its scheduled auction of the MWSS properties.

According to government corporate counsel Alberto Agra, subject of the planned auction are the MWSS pipelines, reservoirs and aqueducts. According to the MWSS, it is petitioning the CA to issue a preliminary injunction and then a permanent injunction before the TRO the appellate court earlier had issued lapses on Nov. 26. Benjamin B. Pulta

Back to top

For comments about this website:Webmaster@tribune.net.ph
The Daily Tribune © 2006