City scrutinizes another bank

The Cebu City Government wants the management of BDO Unibank-Cebu Osmeña Blvd. to explain why they should not be closed due to their “questionable” declaration of their annual gross income.

Mayor Tomas Osmeña also said that the branch is operating without a business permit.

In a show-cause order he signed yesterday, the mayor said that the branch has declared an “impossible” and “outrageous” gross sales for 2016.

According to the records of the City’s Business Permit Licensing Office, the branch had declared a gross income of P6,986.

Osmeña said that the amount, which was equivalent to P582 per month, is not even enough to cover the salaries of the bank’s 22 employees and pay their utility bills, rents and security fee, among others.

“The City of Cebu is under the impression that your declaration of gross income in the calendar year 2016 is impossible, if not outrageous. In addition, your declaration of gross income in the 2017 application form amounts to P2,308,259.00, a huge disparity from the previous year’s P6,986.00,” reads a portion of the show cause order.

“Hence, you are continuously given the burden to clearly and concisely substantiate your declaration of gross sales in the said business permits and applications,” it added.

The City has not yet approved the bank’s business permit renewal application as they are still evaluating it.

Osmeña’s show cause order was addressed to Pilarina del Rio, manager of the branch.

SunStar Cebu tried to get a statement from BDO yesterday but no one from the bank is available for comment.

Osmeña believes that the branch is falsifying their business permit application and evading what is due to the City.

The City is asking the bank to submit a written explanation about the matter within five days from receipt of the order. /