QC gov't takes over Manila Seedling Bank compound

MANILA, Philippines - The Quezon City government has taken over the Manila Seedling Bank compound after commercial stalls occupying the area failed to secure the necessary permits, an official said on Monday.

City administrator Victor Endriga said the city’s business permits and licensing office served on Friday 82 cease and desist orders to tenants and occupants of the MSB compound along Quezon Avenue following their failure to secure the necessary mayor’s and building permits.

Endriga said that in August 2012, during the signing of the deed of undertaking between him and the MSB tenants, occupants agreed to voluntarily vacate the premises of the compound during the first quarter of 2013.

The occupants, as provided under the deed of undertaking, also agreed to dismantle the structures they are occupying, at their own cost, at the end of June this year, including removal of all merchandise and personal effects from these structures.

However, Endriga said that despite the notices of violation and repeated warning, the tenants and the occupants still refused to vacate the property.

“We have already given them one year and four months. Yet, up to now, they are still unable to comply,” he said.

The cease and desist orders issued by the QC government to the MSB tenants were sent for the second time this year. The first batch was served last March.

To date, the QC government, on orders of Mayor Herbert Bautista, has already offered a portion of the Quezon Memorial Circle as an alternative area for business operation to commercial plant traders affected by the city’s takeover.

In September 11, the city building officials ordered the management of the MSB Foundation Inc. to comply with provisions of the National Building Code and its implementing rules and regulations, after it was found out that the building occupied by the foundation has not been issued a building permit and a certificate of occupancy since its construction in 1977.

The first notice of violation was served by the city’s department of building official on June 17.

“Aside from operating without the necessary mayor’s and building permits, Manila Seedling Bank Foundation Inc., no longer have any legal personality with the Securities and Exchange Commission,” Endriga said.

Based on SEC records, the foundation’s certificate of registration has already been revoked since Feb. 21, 2002 for non-compliance of reportorial requirements, in particular, the financial statements from 1996 to 2003.

On the strength of a Supreme Court ruling, the city government took control of the real property occupied by the MSBFI in July 2012 for non-payment of real property taxes on land from 2001 to 2011, amounting to P57.208 million.

While the National Housing Authority holds ownership of the land, the city government maintains that the foundation is not exempted from tax payments since the exemption previously granted to the foundation was already withdrawn on the day the 1991 Local Government Code took effect.

For years, MSBFI has been opposing the city government takeover saying they have the right to occupy the property until 2027 as lessee of the NHA property as provided under Proclamation 1670.