Cebu Provincial Board Halts Major Quarry Tax Break, Insists on Legal Review
The Cebu Provincial Board (PB) has decisively blocked a massive proposed tax break for a major quarrying company, sending shockwaves through local governance. On Monday, April 6, 2026, the board returned a proposed P211.56-million compromise agreement with Apo Land and Quarry Corp. (ALQC) back to the Executive Department, demanding a rigorous legal and financial reassessment before any deal involving public funds can proceed.
An 82 Percent Reduction Under Scrutiny
The sheer scale of the discount raised immediate concerns during the board's regular session. Official records reveal that the Provincial Government originally assessed ALQC a staggering P1,218,630,650.84 in taxes, monitoring fees, environmental enhancement fees, and surcharges spanning from 2009 to 2025.
However, negotiations led by the Executive Department resulted in a proposed settlement of just P211,560,530.35. This represents a massive 82 percent reduction, which would be payable in a one-time lump sum. The drastic drop was achieved by eliminating the tax on extraction, recalculating monitoring fees, and granting an 80 percent discount on surcharges and penalties for the period between 2009 and 2019.
Why the Board Demanded a Return
The committee on ways and means identified several critical issues, noting that the deal was negotiated without the PB's prior authority and pursued despite ongoing court cases involving ALQC. In its report, the committee acknowledged the Executive Department's efforts to resolve a long-standing dispute, recognizing that compromise agreements are legally valid tools to avoid prolonged litigation with its uncertainties and costs.
"However, any agreement involving public funds, property, or claims of the Province necessarily requires not only careful review but also prior authorization and approval of the Sangguniang Panlalawigan, pursuant to the Local Government Code," the report emphasized. It stressed that the board's participation is "essential to ensure that any settlement or agreement entered into by the Province involving public funds are legally sound, fair and protective of the interests of the Province of Cebu and its constituents."
Missing Voices and Escalating Political Tensions
The hearing ignited heated debate among board members. Second District PB Member Stanley Caminero questioned whether the review was thorough enough, given that ALQC representatives were absent and unable to present their perspective. "May I just inquire… if the committee hearing… was considered already sufficient… in the absence of hearing from the side of the Apo Land or the ALQC," Caminero stated.
In response, Fifth District PB Member Michael Joseph Villamor, the committee chairman, argued that hearing from the company was unnecessary at this stage since the deal was being returned to the executive branch. "I believe this is no longer necessary as the recommendation of the committee on ways and means is to have this returned to the Executive Department and if there should be a renegotiation or reassessment, I think it's up to the executive to deal with ALQC because our focus with the committee hearing was specific to the compromise agreement and resolution of the board member of laws," Villamor explained.
This blocked deal unfolds against a backdrop of rising political tensions. On March 11, Governor Pamela Baricuatro declared she was "prepared for war" and labeled Vice Governor Glenn Anthony Soco a "hypocrite" over his stance on the issue. Soco had previously assured the public that the board would meticulously review the settlement's impact on ordinary taxpayers.
Next Steps and Future Implications
The committee is now advising the Executive Department to secure proper authority, conduct a comprehensive legal and financial reassessment, and seek guidance from the Commission on Audit. With billions of pesos originally at stake, the final decision on this dispute will establish a significant precedent for how Cebu manages large-scale corporate tax collections in the years ahead.
