Zambo del Sur seeks tighter watch on firm’s gold shipments, tax obligations

PAGADIAN CITY, Zamboanga del Sur — The Sangguniang Panlalawigan of Zamboanga del Sur is investigating the mining operations of company called TVI Resource Development Philippines Inc. (TVIRD) in Bayog town.

It is zeroing in on the firm’s environmental compliance, tax liabilities, and mineral transport transparency.

The provincial board’s Ad Hoc Committee, chaired by 2nd District Board Member Hernan dela Cruz, is examining the operations at TVIRD’s Balabag Gold-Silver Project.

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The panel wants to verify the production output of the business enterprise and look into the distribution of benefits to affected Indigenous Peoples (IPs).

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Dela Cruz, who also heads the panel on environment and natural resources, clarified that the legislative inquiry aims to enforce regulatory compliance, rather than stop the mining activities.

“The objective is not to obstruct legitimate mining operations, but to ensure that every obligation imposed by law is properly observed,” dela Cruz said.

The provincial board wants to be certain that “every government revenue due is accounted for, and every affected community receives the benefits to which it is entitled,” he noted.

To tighten oversight, the panel is proposing the deployment of provincial government monitors during the weighing, documentation and shipment of gold and silver products at the Balabag site.

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The proposed local monitoring team will coordinate with national regulators—including the Mines and Geosciences Bureau (MGB), Bureau of Internal Revenue (BIR), and Bureau of Customs (BOC).

The action is meant to reconcile production records with declared tax payments and curb potential revenue leakage.

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The committee cited preliminary information indicating that TVIRD transports its gold and silver output via helicopter two to three times a month, depending on the volume.

The board members want to independently verify what kind of practices are going on, through official logs and on-site inspections.

Dela Cruz stressed that establishing an evidence-based monitoring mechanism is necessary to resolve questions surrounding output volumes and tax yields through objective records, rather than speculations.

During the inquiry, local officials questioned TVIRD representatives over the proper payment and remittance of the local government units’ (LGUs) shares from the company’s extraction activities.

The officials included Mayor Celso Matias, dela Cruz, and Board Member Roger Saniel.

The discussion focused on clarifying the remittance of mining-related revenues to Bayog and the provincial government, determining whether all required payments had been fully settled.

In response, TVIRD presented an overview of its mining operations and outlined its adherence to the Philippine Mining Act and other applicable laws.

The mining company maintained that it remains fully compliant with its tax and regulatory obligations.

The legislative probe comes amid an ongoing civil suit filed by TVIRD against the municipal government of Bayog over contested local tax liabilities estimated at roughly P2 billion.

While emphasizing that the exact amount, legal grounds, and covered period remain subject to judicial determination, the committee noted that the lawsuit’s outcome carries major financial implications for local government revenues.

TVIRD started initial operations at the Balabag project in 2017 before reaching full commercial production in 2022.

Engr. Noel Manrique, General Manager and Chief Operations Officer of the TVIRD Balabag Gold-Silver Project, clarified that since the matter has reached the court, the company and the Bayog local government unit (LGU) have agreed to abide by whatever judicial decision is rendered.

“When it comes to taxes, interpretations vary, but it always depends on the National Treasury,” Manrique explained.

“There is a law governing this, and we follow a specific rate, such as 37.5 of 1 percent. Naturally, the LGU has a different interpretation,” he said.

“Our position was to bring it to court, and our amicable understanding with the LGU of Bayog is that we will wait for the court’s judgment and comply accordingly,” he remarked.

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“If the court rules that we must pay, then we will pay. The case remains ongoing,” he added. /apl