BINAN, LAGUNA, March 12 – The National Grid Corporation of the Philippines (NGCP), a privately-owned company with a 25-year concession to operate the country’s power grid, has clarified that it is a separate and distinct entity from the National Transmission Corporation (TransCo).
NGCP made the clarification as it filed on 21 February 2012 a Motion for Partial Reconsideration seeking the amendment of a Court of Appeals (CA) Decision on the Petition CA-GR SP No. 113603 entitled “National Grid Corporation of the Philippines vs. The Municipality of Labrador, Pangasinan, Edualino Casipit and Lank Bank of the Philippines.”
The Municipality of Labrador is demanding the enforcement of local government taxes due from TransCo. NGCP asserts that the tax liabilities amounting to Php221.7 million are TransCo’s.
The Petition was filed in view of the Warrant of Distraint and Garnishment received by Land Bank of the Philippines from the Municipal Treasurer of Labrador, Pangasinan ordering the seizure and/or confiscation of NGCP’s bank deposit with Land Bank to the extent of Php221,731,015.11.
The CA Decision dated 31 January 2012 did not rule with finality that NGCP is liable to assume the local business tax liabilities of TransCo. The CA only dismissed the Petition for lack of jurisdiction and also stated that the Petition raised factual issues that need to be tried in the lower court.
Despite dismissal of the case for lack of jurisdiction, the CA declared in the last portion of its Decision that based on its preliminary findings, NGCP and TransCo have no separate and distinct personalities, that Distraint is being enforced not on the property of NGCP but against the properties of TransCo in NGCP’s possession, and that the takeover by NGCP of the business of TransCo raised the presumption that NGCP assumed possession of TransCo’s assets, cash and receivables, including charges for local taxes. NGCP, however, insists that TransCo’s tax payables due to the national government and any LGU were not transferred to it, and remains TransCo’s responsibility, despite the turn-over of the business.
The aforesaid set of preliminary findings included in the CA Decision is the same portion that NGCP seeks to be deleted in its Motion for Partial Reconsideration for being null and void, considering that the preliminary findings were based on presumptions and without any factual basis and supporting evidence.
NGCP maintains that the portion is clearly erroneous and inconsistent with the ruling of lack of jurisdiction over the issues.
TransCo, a government-owned and controlled corporation, used to operate and maintain the country’s power transmission system. After a public bidding in December 2007, the management concession contract was awarded to NGCP, which secured a congressional franchise to operate the transmission network; but ownership of all transmission assets remains with TransCo.
In a similar Petition that NGCP filed involving Metrobank in November 2011, the CA also dismissed the case and the Municipality of Labrador sought to enforce the same Warrant of Distraint against NGCP’s bank account. NGCP filed a Petition for Injunction with Application for Temporary Restraining Order (TRO) in the Regional Trial Court (RTC) of Quezon City. The RTC issued a TRO and a preliminary injunction restraining Metrobank from releasing NGCP’s bank deposit and delivering NGCP’s funds to the Municipality of Labrador.
NGCP is prepared to do the same – file a Petition for Injunction with Application for a TRO – before the appropriate RTC should the Municipality of Labrador enforce again the Warrant of Distraint and Garnishment against NGCP’s bank deposit with Land Bank. NGCP reiterates that it has no enforceable tax obligations to the Municipality of Labrador in connection with the prior operations of TransCo. (For inquiries: Atty. Cynthia P. Alabanza, Spokesperson [cpalabanza@ngcp.ph/09175707884]/PIA Sorsogon)
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