STATEMENT OF MAYOR FRANCIS ZAMORA ABOUT THE ALLEGED NON-RELEASE OF TERMINAL LEAVE BENEFITS OF FORMER SAN JUAN CITY HALL EMPLOYEES ISSUED FEBRUARY 28, 2023

francis zamora

Since 2019, the City Government of San Juan has released Terminal Leave Benefits of former City Government employees amounting to PhP 45,934,981.03 to 122 claimants, including that of former Mayor Guia Gomez and key members of the previous Estrada administrations.

Releases are based on a schedule that we strictly follow for budget management purposes to ensure that all aspects of local governance are given attention to. We cannot release all terminal benefits in one tranche because it will have an adverse effect on the city’s budgeting and finances.

On May 11, 2022, a Warrant of Distraint and/or Levy in the amount of PhP 235,293,316.38 was issued to the City Government of San Juan for then Mayor JV Ejercito’s failure to pay tax dues worth PhP 65,954,947.90 for fiscal year 2008. His mother, former Mayor Guia Gomez during her tenure from 2010-2019 likewise failed to settle the tax deficiency for said taxable years.

Specifically, the amount of Income Tax and Value Added Tax for the City Government’s proprietary income during the Taxable Year 2008 was assessed by the BIR in the amount of PhP 121,940,623.99 and PhP 25,762,416.61, respectively. The said agency likewise assessed the City Government for underwithholding purchases of goods and services from various contractors and suppliers of Final Value Added Tax (FVAT) in the amount of PhP 44,742,099.45, and PhP 15,392,495.84 for Expanded Withholding Tax, and another PhP 27,024,208.49 for failure to withhold tax on compensation. Finally, land purchased for the Year 2008 totaling P8,000,000.00 was assessed for Documentary Stamp Tax totaling PhP 431,472.00.

To avoid garnishment and levy of the City Government’s assets, I successfully secured, from the BIR, a reduction in the deficiency taxes from PhP 235,293,316.38 to PhP 40,997,942.75. Had we not been able to prevent the imminent garnishment and levy of the City Government’s properties, the salaries of the almost 2,000 city hall employees, the electricity of our local government facilities, the educational, medical, financial and livelihood assistance programs for over 150,000 constituents of San Juan City would have suffered immensely.

This unplanned PhP 40,997,942.75 tax payment expense became a setback to the city’s full recovery from the effects of the pandemic and affected the city’s ability to immediately disburse pending payables, including Terminal Leave Benefits.

The allegation that the non-release of the benefits is politically motivated is preposterous because the fact that 122 claims already released were for Estrada appointees and hires is proof that there is no bias in the selection process as to who will receive their benefits. Given that the Estradas were in power for 49 years, from 1969 until 2019, it is only expected that those applying for Terminal Leave Benefits are politically affiliated with them as their long time employees.

Wala akong iniipit o ginigipit ng dahil sa politika. Sa katunayan, isa si Mayor Guia Gomez sa kauna unahang nakatanggap ng kanyang Terminal Leave Benefit.

There is no reason for the Senator to claim that this is politically motivated given that in the 2022 Elections, he asked for my support when he ran for Senator. Binigay ko ang aking suporta, tinulungan ko siya at bilang pag endorso, isinama sa aming sample ballot. Walang dahilan o basehan para isipin niya na may away politika kami na magiging dahilan para ipitin ko diumano ang TLB ng mga tao nila.

The City Government of San Juan is committed to releasing claims for Terminal Leave Benefits to all qualified employees. Processing and releasing are ongoing and continuously being done to ensure that those without pending complaints and/or cases will be prioritized.

Kakampi man o katunggali sa politika, patas ang tingin namin sa kanila bilang mga San Juaneño.