Graft charges were filed at the Office of the Ombudsman against Pasig City Mayor Vico Sotto, Business Permit and Licensing Department (BPLD) head Melanie de Mesa and City Administrator Jeronimo Manzanero for allegedly granting a full tax discount to a telecommunications firm accused of tax evasion.

Based on the 17-page complaint-affidavit dated 7 August filed by a certain Ethelmart Austria Cruz, the local government officials of Pasig allegedly violated Section 3(e) of the Anti-Graft and Corrupt Practices Act (RA 3019), Section 4 of RA 6713 or the Code of Conduct and Ethical Standards for Public Officials and Employees as well as committed grave misconduct, gross neglect of duty and conduct prejudicial to the best interest of service and dishonesty.

The complaint added that the officials were allegedly giving preference to Converge ICT Solutions Inc. for giving it a 100 percent tax discount despite “knowing fully well” that the telecom firm misdeclared the actual size of its office and the number of its employees in its tax declaration.

According to Cruz, Converge, which initially stated that its office space was 5 square meters and employed only four people, actually employs 1,901 and occupies four floors of office space with a total area of 9037.46 meters and claimed that the information was confirmed by no less than the BPLD itself through an inspection in July and September 2022.

The complaint also showed a tax order of payment was issued on 18 October 2022, where Converge was assessed a total amount of P3,670,340.11, with a total surcharge of P447,106.77 and interest amounting to P979,570.27 representing deficiencies and delinquencies in the payment of fees and licenses.

Cruz alleged that Converge sought the assistance of the local government to waive the penalties.

“In light of their actions, it is obvious that respondents clearly and definitely discharge their duties with the highest degree of excellence and professionalism, intelligence and skill when they issued the said tax discount to Converge,” Cruz said in the complaint.