BAYOMBONG, Nueva Vizcaya—The Regional Trial Court here has granted the petition of Casecnan Water & Energy Co. Inc. for a 20-day Temporary Restraining Order, stopping the order of Alfonso Castañeda town to settle the firm’s unpaid Real Property Tax arrears.
Issued by Judge Jose Godofredo Naui of RTC branch 37, the TRO took effect on Jan. 31 and expires Feb. 19.
CWECI sought the restraining order after Alfonso Castañeda Mayor Jerry Pasigian notified businesses in the municipality to settle their unpaid RPT or face closure and a halt to their operations.
A subsidiary of Berkshire Hathaway Energy Co. and operator of the Casecnan Multi-Purpose Irrigation and Power Project, CWECI runs the project that siphons water from the Taan and Casecnan rivers in Alfonso Castañeda through a 26-kilometer diversion tunnel to the Pantabangan Dam in Nueva Ecija.
It irrigates at least 200,000 hectares of farmland in Central Luzon and the western part of Pangasinan using the water sourced from this province and neighboring Quirino.
Pasigian said CWECI was advised to pay P1.7 billion in RPT arrears to the provincial government before their business permit will be renewed for 2017, but the firm refused, citing the provisions of Executive Order 173 issued by former President Benigno Simeon Aquino III.
The EO required the reduction and condonation of RPTs and interest or penalties assessed on power generation facilities of independent power producers under the Build-Operate-Transfer contracts with government-owned and controlled corporations.
“We are now coordinating with the provincial government through the Provincial Legal Office for the preparation of our Motion for Reconsideration,” Pasigian said.
The mayor said his ‘No Permit No Operate’ notice was given to all establishments in their town and did not single out CWECI.
“I denied CWECI’s municipal business permit because the basic permit emanating from the barangay was not also issued. This is a slap on the face of our barangay captains if I opted to give them their municipal permit,” Pasigian said.
He said barangay officials of Lublub, Pelaway, Lipuga, Cauayan, Galintuja and Abuyo are supporting their legal action in claiming the unpaid taxes of CWECI.
Pasigian said their fight to claim CWECI’s arrears started last year through a series of blockade actions on the CMIPP’s access roads.
“I promised then that I will not cut my beard until CWECI will settle and pay their RPT arrears, and I will go on with my promise until this problem is settled,” he said.
Pasigian also expressed optimism the government will support their claim since this is supported by the Local Government Code of 1991 and the Indigenous People’s Rights Act.
“We have our legal rights and we will do everything to fight it out unless the Supreme Court will declare it null and void,” he said.