Bureau of Local Government Finance Opinion

February 11, 2011 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION Mr. Joselito R. Bacani Resident Manager Zambales Diversified Metals Corporation (ZDMC) 4th Floor Pilgrim Bldg. 111 Aguirre Street, Legaspi Village Makati City Sir : This refers to your letter dated October 7, 2010, relative to the payment of occupation fees of Zambales Diversified Metals Corporation (ZDMC). It is claimed that ZDMC, a holder of MPSA No. 191-2004-III, had on several occasions (June 2010, July 2010, and August 2010) tendered payment to the Office of the Municipal Treasurer of Sta. Cruz, Zambales, occupation fees due on MPSA No. 191-2004-III for 2010 in compliance with Section 86 of Republic Act No. 7942 and Section 218 of Department Administrative Order No. 96-40. However, it is alleged that said Office refused to accept the payments of said occupation fees apparently upon instructions given by the Office of the Mayor. cADaIH In view of the difficulty in paying occupation fees during the previous years, the predecessor holder of the MPSA (CRAU Mineral Resources Corp.) tendered payment of occupation fees to the Provincial Government. The Provincial Government accepted the payment of occupation fees on behalf of the municipal government to allow the MPSA holder to comply with its obligations under the law. In this connection, please be informed that the above letter has been referred to the Municipal Treasurer of Sta. Cruz, thru the Provincial Treasurer of Zambales under a 1st Indorsement dated November 3, 2010. In a letter dated January 25, 2011, copy enclosed, the Provincial Treasurer informed that the Governor had issued a Memorandum dated January 17, 2011, copy also enclosed, addressed to the Local Chief Executives and Municipal Treasurers of said province for the proper implementation and collection of occupation fees of mining companies in Zambales pursuant to the Philippine Mining Act of 1995. On the basis of the said Memorandum, a representative from ZDMC may confer with the Office of the Municipal Treasurer of Sta. Cruz for the payment of the herein referred occupation fees. DcITaC Very truly yours, (SGD.) MA. PRESENTACION R. MONTESA, CESO III Executive Director