BDO closure in Cebu will affect thousands of depositors in the city alone.
Cebu, Philippines – Mayor Tomas Osmeña wants to close the BDO branch in Cebu City after it was revealed that the bank only pays Php2,000 in taxes per year.
In a recent statement issued By Banco de Oro, closing 27 branches in Cebu will hurt more than 200,000 depositors in the city alone.
“Once the closure order is implemented, there will be an irreparable injury not only to BDO but also to the country’s financial instability,” the bank said in the memorandum.
The issue arises after Mayor Osmeña revealed that the branches failed to renew their business permits. The mayor also said that the bank is operating without permits.
As a defense, BDO said it submitted all the required documents to the City Government so that all its branches will be issued a business permit, but the City Mayor refused to renew it.
“BDO stands to suffer grave and irreparable injury and immeasurable injustice without the injunctive relief,” the memorandum added.
BDO Unibank Inc., through the Law Firm filed a mandamus petition against Mayor Osmeña and City Treasurer Tessie Camarillo before the regional Trial Court (RTC).
In a recent news report of Sunstar, as to the threatened closure of their 27 branches, BDO apologized to their clients for the inconvenience.
Mayor Osmeña has reportedly filed a criminal complaint before the office of the Cebu City Prosecutor against the BDO executives and board directors.
The Mayor accused BDO-Magallanes for under-declaration of falsifying its gross and only pays Php2,000 in taxes per year after declaring that their gross sales only amounted to Php400,000.
Last February 27, 2017, RTC Branch 18 Judge Gilbert Moises issued a status quo order against the closure of the BDO branches until March 28.
