Adelup candidate urges gov to use $14.7M tax lien against MidPac to pay GMH debt

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Guam – A Calvo-owned corporation, Mid Pacific Distribution Corporation has not paid $14.7 million in back taxes to the Department of Revenue and Taxation.

Court records filed with the District Court of Guam show that in June 2017 Rev and Tax filed a tax lien against MidPac for unpaid taxes dating back to April of 2014. The assessment for these outstanding taxes were levied between July 2015 to May 2017.

“Demand for payment of this liability has been made but it remains unpaid,” the tax lien filed by Rev and Tax says.

We contacted MidPac President John Calvo for his response and to find out if the $14.7 million balance, which includes interest and penalties, had been paid but we have not yet heard back from him as of news time.

Meantime, Democratic gubernatorial hopeful Lou Leon Guerrero has weighed in on the matter, renewing her call for Governor Calvo to declare a state of emergency at GMH while urging the governor to use the $14.7 million debt from MidPac as a direct payment to the hospital to fund the implementation of its corrective action plan submitted to the Centers for Medicare and Medicaid, which has threatened to pull the hospital’s provider agreement effective October 3. Without a provider agreement, GMH could lose up to $30 million in federal subsidies.

GMH’s outstanding debt now sits at $15 million, according to CEO PeterJohn Camacho.