The Court of Appeals (CA) in Cagayan de Oro City has prevented the city government of Surigao from selling government properties in Nonoc Island, Surigao City Monday.
In a statement, Department of Finance’s (DOF) Privatization Management Office (PMO) said it has obtained a temporary restraining order (TRO) against the scheduled auction sale of machineries and equipment, which were previously owned by the Philnico Industrial Corporation (PIC).
It explained that the said properties have been the subject of litigation since August 2011 after the city government assessed these for real property taxes from 2000-2010 amounting to P200 million.
However, the PMO said the said properties are exempted from real property taxes after these became the property of the national government since 1999.
“Despite such classification, the city government has persisted in assessing real property taxes over the same,” the statement said.
PMO said the city government initially scheduled the auction of the machineries and equipment on September 19, 2011 but it did not push through after PMO filed a Petition for Prohibition.
“Despite the pendency of the case, the City Government, through City Treasurer Sarah Yamit, had again scheduled an auction sale of 16 July 2012,” it cited.
PMO received the TRO issued by the Court of Appeals on July 13, 2012, which also orders the city government “to show cause why the application for a Writ of Preliminary Injunction should not be granted.” (PNA)
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