Bureau of Local Government Finance Opinion

August 30, 2006 BUREAU OF LOCAL GOVERNMENT FINANCE OPINION Atty. Carmen D. Lorenzo, CPA Legal Counsel of SOCOTECO II SOCOTECO II Legal Office Socoteco II Building, Jose Catolico Ave. General Santos City M a d a m : This refers to your letter requesting confirmation from this Office that for the period 2000-2003, SOCOTECO II, by virtue of the Temporary Restraining Order (TRO) filed before the Supreme Court in the case of PHILRECA, is not liable to the assessments of penalties, surcharge and interests due on the subject electric cooperative. In reply, enclosed is a copy of the 1st Indorsement dated April 6, 2005 of this Bureau, the pertinent portion of which provides as follows: "xxx xxx xxx "Lastly considering the Temporary Restraining Order (TRO) issued on July 25, 2000 by the Supreme Court in relation to the PHILRECA case (G.R. No. 143076) and considering further the Resolution of the said Court En Banc dated August 5, 2003 (Denying with Finality the Motion for Reconsideration), no interests for the real property taxes due for the said period shall be imposed on electric cooperatives including CASURECO." In view of the similarity of the issues under the above 1st Indorsement on the case of CASURECO, no interest for delinquency must be imposed for SOCOTECO II for the period 2000-2003 in view of the Temporary Restraining Order (TRO) issued by the Supreme Court in connection with the PHILRECA case. We hope that the issue raised has been adequately answered. Very truly yours, (SGD.) MA. PRESENTACION R. MONTESA Executive Director