Rules and Regulations Implementing Republic Act No. 9295, Entitled "An Act Promoting the Development of Philippine Domestic Shipping, Shipbuilding, and Ship Repair and Ship Breaking, Ordaining Reforms in Government Policies Towards Shipping in the Philippines, and for Other Purposes"

March 4, 2011 BLGF MEMORANDUM THRU : Channels SUBJECT : Report of Mediation Meeting Held on March 2, 2011 Between LGU-Aroroy, Represented by Some Local Officials, and Filminera Resources Corporation (FRC) Represented by Ms. Joy P. Dompor, Senior Finance Manager In compliance with BLGF TRAVEL ORDER NO. 07-2011 dated February 28, 2011, the undersigned personnel of this Bureau, on March 1, 2011 proceeded to Aroroy, Masbate to mediate/assist in resolving the issues submitted to this Bureau for resolution between the Municipality of Aroroy, Province of Masbate and Filminera Resources Corporation. The meeting was agreed to be held on March 2, 2011 as the Municipal Treasurer, Mrs. Teresa J. Lim arrived in Masbate on the same day that the BLGF Team arrived. Treasurer Lim who attended the PHALTRA Annual Conference held in Manila, arrived at Aroroy, Masbate via Pilar, Sorsogon while the team was via Masbate City then took the ferryboat to Aroroy. On March 2, 2011, at about 11 a.m. a meeting was held at Office of the Municipal Treasurer. Treasurer Teresa J. Lim presided the meeting and after the opening notes introduced the members of the Local Finance Committee (LFC) except Engr. ARTHUR L. MERICO, Municipal Planning & Development Officer, who was then in the United States with the Municipal Mayor. At length, LGU-Aroroy thru Treasurer Teresa J. Lim reiterated its stand that FRC, as a result of the inspection/verification made by Engr. Merico, is deficient in its initial local business tax paid in 2008. On the other hand, FRC thru its Senior Finance Manager, Ms. JOY P. DOMPOR, likewise made a reiteration that the company made an overpayment (erroneous) and therefore entitled to a tax credit. She made a clarification that the erroneous payment resulted from the business tax payments made in 2008, which allegedly are not supposed to have been made considering that FRC started its commercial operations only in April 2009 and therefore subject only to the payment of the initial LBT. Ms. Dompor also clarified and reiterated that the structures such as Power Plant, Processing Plant and Tailing Ponds, which are the subject of the Report of Engr. Merico, are all owned by Philippine Gold Processing & Refining Corporation (PGPRC) as evidenced by the Certificates of Occupancy issued by the local Building Official of the Municipality and which Ms. Dompor promised to submit the copies to the undersigned. DCcHAa The BLGF Team, certain during the discussion that both parties are firmed on their positions, explained that the inspection report of Engr. Merico has to be authenticated first before making any confirmation of the validity of the said Report. (SGD.) PRESENTACION R. MONTESA, CESO III Executive Director