Cebu’s provincial board has sent back to the executive branch a proposed compromise agreement with Apo Land and Quarry Corp (ALQC), citing legal and financial concerns over a sharp reduction in the company’s liabilities to the province, according to a committee report first seen by DotTV Network.
The Committee on Ways and Means of the Sangguniang Panlalawigan of Cebu said the proposed settlement would cut ALQC’s liabilities to 211.56 million pesos ($3.7 million) from 1.218 billion pesos, an 82% reduction.
Board members raised questions over the removal of extraction tax, the recalculation of monitoring fees, and what the panel described as substantial discounts on penalties and surcharges.
The committee also flagged the manner in which the settlement was negotiated, saying discussions were conducted without prior authorization from the provincial board, a possible violation of the Local Government Code of 1991.
It added that pending court cases involving ALQC remain unresolved, exposing the province to further legal risk should the agreement proceed in its current form.
While compromise agreements are permitted under Philippine law, the committee said any arrangement involving public funds must be properly authorized, transparent and protective of the province’s interests.
The proposal has been returned to the executive branch for further review, including a full reassessment of the figures and terms in the draft settlement. The panel also recommended possible consultation with the Commission on Audit, the state body tasked with examining the use of government funds.
The report did not indicate when the compromise agreement was first negotiated or whether provincial officials would revise and resubmit the proposal.
ALQC has been involved in quarry operations in Cebu, a province that has long grappled with issues tied to resource extraction, environmental oversight and local government revenue collection.
The case adds to scrutiny over how local governments handle settlements involving private contractors, particularly where large sums of public money and unresolved legal claims are involved.
Cebu Business News
