PRESS RELEASE
March 10, 2009
Office of Caloocan City Mayor Enrico “Recom” Echiverri
Ref. Public Information Office
Telefax 3244644

The Caloocan City Government yesterday assured the tenants and stall owners of the Ever Gotesco Grand Central Mall along Rizal Avenue Extension that it will be business as usual during its likely take over of the property adding that it plans to enter into a new contract with all existing parties.

Caloocan City Mayor Enrico “Recom” Echiverri reiterated his earlier pronouncement that the city will always seriously take into consideration the welfare of almost 300 tenants and their employees.

“The owners should not fear of losing their current stalls within the mall as we plan to enter into a new contract with them,” he said.

According to the mayor, the recent decision is another triumph of the city government in its bid to increase tax collection and seriously go after tax evaders.

“It is the triumph of the city, the rule of law and of the Local Government Code which gave basis to our actions to go after Gotesco for its failure to pay the taxes due to the city,” he added.

Echiverri also emphasized that he will not think twice in going after business establishments that are found to have tax liabilities.

The mayor also expressed confidence that even the Supreme Court would likely rule in the city government’s favor if Gotesco’s appeal ever reaches the High Court.

Last Monday, court Sheriff Nicholas Ramos served the notice to vacate within three days to Gotesco management.

Earlier, Caloocan Regional Trial Court Acting Presiding Judge Oscar Barrientos of Branch 126 awarded the said property to the city government for failure of its previous owners, the Gotesco Investments, Inc., to pay the real property taxes for the past 23 years amounting to P722.3 million.

The writ of possession order also included the ejection of Gotesco Investment and all other parties claiming rights to the mall in favor of the city government.

In 2007, the city treasurer proceeded to auction the mall based on the Republic Act 7160 otherwise known as the Local Government Code of 1991 and RA 5505 or the revised charter of the city. For failure of Gotesco to pay the taxes the property was forfeited in favor of the city government. In Dec. 28, 2008, technically, the city is the owner of the property because Gotesco failed to redeem the same within one year period after its forfeiture.

In other related development, Echiverri plans to conduct a comprehensive structural assessment of the mall in order to ensure that its buildings are still structurally sound adding that this will guarantee the safety of mall goers.