BY GEROME DALIPE IV
ILOILO – The Commission on Audit (COA) has called on the Leon municipal government to enforce the collection of unpaid market rentals on stall occupants of its public market.
In their 2023 annual audit report, state auditors noted the municipal government could have earned an additional P2.094 million had it diligently collected the rentals from market stall occupants.
The income would have added to the town’s coffer needed to fund developmental projects beneficial to its constituents, COA auditors pointed out.
The municipal treasurer’s office told the auditors that unpaid market stall rentals reached P1,675,240 as of Dec. 31, 2023. The unpaid market rentals excluded surcharges of 25 percent of the total rent due.
According to COA, such violated Section 18 of Republic Act No. 7160, the Local Government Code of 1991, Municipal Ordinance No. 2011-007, or the Municipal Revenue Code of the Municipality of Leon.
The ordinance provides that the fee for the rental of market stalls shall be paid to the municipal treasurer or his duly authorized representative within the first 20 days of each month.
The officer-in-charge of Leon’s treasurer’s office explained that they exerted effort in collecting the delinquent stall rentals by issuing demand letters and conducting dialogue with the stall owners.
The town treasurer said two stalls were ordered closed in 2023 due to non-payment of rentals. Delinquent stall owners were also required to partially or fully pay their delinquencies or execute a promissory note on the balance before issuance of clearance in the renewal of their 2024 business permits.
The town treasurer said they will also issue demand letters to delinquent stall owners or award the stalls available only to those stall owners with updated accounts after the renovation of their market.
“Failure to collect revenue or fees that could have accrued to the funds of the Municipality deprived constituents of the benefits of the projects that could have been funded by such revenue,” COA said in its report.
The auditors also recommended that the municipal mayor direct the town treasurer to enforce collections of unpaid market rental fees including surcharges and impose penal provisions of their municipal tax ordinance./PN