Bureau of Local Government Finance Opinion

March 8, 2011 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION 2nd Indorsement Respectfully referred to the OIC-Regional Director for Local Government Finance, Region VII, Cebu City, the herein preceding indorsement relative to the letter of Spouses Mark Eliot Godfrey and Mevalyn Torda Custan-Godfrey alleging nonfeasance of certain officials of the City Treasury and the City Assessor's Office of Cebu City. It appears that said officials were asked to act on the complaints against Mr. Gerardo D. Quintos and his business interests in the Sta. Lucia Realty and Development, Inc. (SLRDI) office in Banilad, Cebu City. However, it is claimed that complainants have only met delays in the form of inaction and deceptions by said officials. Said complaints originated from the execution of a Deed of Absolute Sale for the consideration of THREE MILLION EIGHT HUNDRED THOUSAND PESOS (Php3,800,000.00) in favor of the Spouses Mevalyn C. Godfrey and Mark Eliot Godfrey over a parcel of land together with all the improvements thereon by Mr. Gerardo D. Quintos on March 26, 2007. The complainants, among others, alleged the following: ETHCDS 1. The City Assessor issued a Certification stating that the parcel of land, subject of the complaint, had no improvements, as of 6 December 2007 although in truth and in fact the residential house was completed in May 2005 as shown by the Certificate of Final Inspection. 2. Forged/falsified documents were forwarded by the office of the City Assessor to the OIC-City Treasurer. 3. The Certificate of No Improvement was secured in order for Mr. Quintos to avoid the payment of capital gains tax, documentary stamp tax, transfer tax and real estate taxes corresponding to the residential house, thereby defrauding through the said scheme, the BIR and the City Treasurer of Cebu City who collect the transfer tax. 4. Unwillingness by government officials to proceed with any complaints that goes against the interests of Mr. Quintos and his SLRDI business interests in Cebu, including that of RS Property Management Corporation resulting in inaction for over six (6) months. IEHSDA In this connection that Office is hereby directed to confer with the City Treasurer and City Assessor, both of Cebu City to answer the allegations made by the complainants and to thresh out and settle the issues raised. Report of action taken hereon within five (5) days from receipt hereof is requested. (SGD.) MA. PRESENTACION R. MONTESA, CESO III Executive Director