A proposed compromise agreement involving the Province of Cebu and Apo Land and Quarry Corp. (ALQC) has been returned by the provincial board’s Committee on Ways and Means to the executive branch after lawmakers raised legal and financial concerns, according to documents first seen by DotTV Network.
In its review, the committee flagged the steep reduction in ALQC’s liabilities to the province, which dropped to P211.56 million from P1.218 billion, equivalent to an 82% cut.
Board members questioned provisions in the draft deal that reportedly removed extraction tax, recalculated monitoring fees, and granted substantial discounts on penalties and surcharges.
The committee also raised concerns over the process behind the negotiations, saying these were conducted without prior authorization from the Sangguniang Panlalawigan, a possible issue under the Local Government Code of 1991.
Lawmakers said any settlement involving public funds must be properly cleared, transparent, and structured to protect the province’s financial interests.
Another concern cited by the panel was the existence of unresolved court cases involving ALQC, which could expose the province to further legal risk if the compromise proceeds without a full review of its implications.
The draft agreement has now been sent back to the executive branch for further study and reassessment. The committee also suggested possible consultation with the Commission on Audit, which oversees the proper use of government resources.
The development puts fresh focus on how local governments handle negotiated settlements with private contractors, particularly in cases involving large foregone revenues and ongoing legal disputes.
In Cebu, where quarrying has long been a sensitive issue due to its economic, regulatory, and environmental implications, the board’s decision signals a cautious approach toward deals that may significantly reduce collections due to the province.
Business News Asia
