The City Council is reviewing City Ordinance No. 794 or the Revised Revenue Code (RRC) of 2016, prompted by a legal question arising from a property claim.
Committee on Legal Matters chairman city councilor Nesario Awat on Monday reported its committee findings on the concern raised by a certain Pepito M. Manila, alleging violations commissioned by some of his tenants.
The concern raised apparent loopholes in the city’s business permit application relating to co-ownership and lease agreement which was excluded on the provisions of the RRC.
Based on the report, the issue started when the Manila family’s patriarch died leaving the family business to his seven heirs.
The business was subsequently operated by the Manila siblings until one of them decided to take a lateral move on leasing his share to some other tenants.
Awat said that the City Licensing Office allowed the issuance of business permits relative to the arrangement which allegedly contravenes provisions of the New Civil Code (NCC) of the Philippines in terms of co-ownership.
“According to our Civil Code, when it comes to co-ownership, the majority has to decide,” he said.
One tenant who requested not to be named said that lease agreement was made “just like how it was arranged” with the others pointing out that the only difference was on the named lessor as there’s not much difference when it comes to the lease price.
Pepito Manila contended that the act was illegal as he solely has the power of attorney to govern administrative duties of the family business, and claimed that the lease agreement entered into was void.
Awat said that such circumstances arise when there is dispute on the ownership of the business establishment.
“Ang nakakalungkot doon, [when it comes to issuance of business permit] may delay sa City Legal Office at eventually nabibigyan ng business permit,” he said.
Vice mayor Nancy Socrates questioned the process of business permit issuance and suggested for the City Council to look further into the RCC.
“Baka may legislative action para hindi na maulit yung ganitong [pangyayari],” Socrates said.
Awat confirmed that the concern was raised to the City Licensing Office and they promised to abide on the recommendations set-forth by the Committee.
The Council decided to keep the report on file as they gear towards proposing amendments that will expand the scope of the RCC.