SAN FERNANDO CITY—The buildings and machineries of the Bauang Private Power Corporation (BPPC) in barangay Payocpoc Sur in Bauang town is now in the hands of the provincial government.

This was after a public auction held on February 1, 2008 at the provincial Capitol in San Fernando City, La Union which was won by the provincial government.

The public auction was conducted because of the failure and refusal of BPCC to pay its real property tax for its buildings and facilities from 1995 to 2007 amounting to P1.866 billion.

The public auction was witnessed by local officials led by Congressman Victor F. Ortega, Governor Manuel C. Ortega, Vice Gov. Eulogio Clarence Martin P. de Guzman III, Bauang Mayor Robert P. de Guzman, lawyers led by Manuel M. Lazaro and Associates, barangay officials and concerned citizens.

The auction sale of the buildings and properties was the culmination of the protracted legal battle between the province and BPPC, lasting for almost seven years.

The case went through four different bodies, starting from the Local Board of Assessment Appeals (LBAA), the Central Board of Assessment Appeals (CBAA), the Court of Tax Appeals (CTA) and finally the Supreme Court.

The province assessed BPPC for real property taxes on its machineries and equipment in 2000. However, the company sought an exemption from paying the RPT before the LBAA in Case No. 01-99.

The LBAA ruled that the properties are not exempt from RPT and that BPPC, as registered owner, is liable to pay the same.

The LBAA ruling was affirmed by the CBAA in Case No. L-32 and then by the CTA in CTAEB Nos. 51 and 58 and finally by the Supreme Court in GR. No. 173811 when it denied BPPC’s Petition seeking to set aside the decision of the CTA.

BPCC’s motion for reconsideration with the SC was denied finally on February 26, 2007. On April 3, 2007, the Resolution of the Supreme Court dismissing BPPC’s petition became final and executory.

Following this judgment against BPPC and in accordance with the provisions of the Local Government Code of 1991, the province sent BPPC a Notice of Delinquency in the amount of P1.866 billion representing delinquent taxes, inclusive of penalties from June 1995 to July 2007.

BPPC however failed to settle the amount, leaving the province no recourse but to auction off the assets of the power corporation.

The auction sale was conducted by the Provincial Public Auction Committee constituted by Ortega per his Executive No. 001, series of 2008 and chaired by Provincial Treasurer Francis Estigoy. (PNA)