PHILAB Holdings Corp. has asked the Office of the Solicitor General (OSG) to step in its case with the Department of Education (DepEd) for its failure to pay the company P2.44 billion.
In a disclosure to the stock exchange Wednesday, the listed firm said its subsidiary Philab Industries, Inc. and its joint venture partner Chinese government-owned China Education Instrument and Equipment Corp. have requested for arbitration concerning their billing dispute with DepEd.
“This request was received by the Office of the Solicitor General and DepEd on Sept. 16,” the company said, adding that the venue for the ad hoc arbitral proceedings will be selected within 30 days.
BusinessWorld reached out to DepEd for comment on the matter but has yet to reply as of press time.
Trading of Philab Holdings’ shares were suspended in May 2018 after the Philippine Stock Exchange rejected the firm’s 2017 annual report due to its receivables from DepEd.
Philab derives a substantial amount of its net sales from procurement contracts with DepEd and the Department of Health, providing mostly life science tools and equipment. — Arra B. Francia