Pasig City Mayor Vico Sotto is facing a graft complaint before the Office of the Ombudsman, accused of granting a 100% tax discount to Converge ICT Solutions, Inc., a telecommunications company. The complaint was filed by Ethelmart Austria Cruz, who charged the mayor with grave misconduct, gross neglect of duty, conduct prejudicial to the best interest of service, and dishonesty.
In a 17-page complaint-affidavit, Cruz alleged that since 2018, Converge had falsely declared for tax purposes that it occupied a mere 5 square meters of office space and employed only four people. However, subsequent inspection reports from July 18, 2022, and September 19, 2022, revealed a significant discrepancy. The company was found to occupy four floors of office space, totaling 9,037.46 square meters, with a workforce of 1,901 employees.
Following these findings, a tax order of payment was issued on October 18, 2022, assessing Converge a total of P3,670,340.11. This amount included a surcharge of P447,106.77 and interest amounting to P979,570.27, covering deficiencies and delinquencies in the payment of fees and licenses.
Cruz contended that despite these findings, Mayor Sotto granted the company a 100% tax discount, which she claims violates the Anti-Graft and Corrupt Practices Act. “It shows the respondents’ acts patently showed a preference in the discharge of their duties when they issued a 100% tax discount,” the complaint stated. Cruz argued that a compromise agreement would have been a more appropriate and less detrimental course of action for the City of Pasig.
In response to the complaint, Mayor Sotto dismissed the allegations, stating, “Anyone can file a complaint, it doesn’t mean anything.” He did not elaborate further on the accusations.
This complaint adds to the list of challenges faced by Mayor Sotto, who has been a prominent figure in local governance since his election. The outcome of the case will be closely watched, given its potential implications for both Sotto’s administration and the business community in Pasig City. The Office of the Ombudsman is expected to conduct a thorough investigation to determine the validity of the charges and whether any wrongdoing occurred.