REPUBLIC OF THE PHILIPPINES )CITY OF SANTIAGO ) S.S.

COMPLAINT-AFFIDAVIT

I, AMELITA S. NAVARRO, of legal age, Filipino and a resident of Centro East, Santiago City, after having been duly sworn to in accordance with law hereby depose and say:

1. That I am the incumbent City Mayor of Santiago City with Office Address at City Hall Complex, San Andres, Santiago City;

2. That as Executive Head, I am tasked to implement the provisions of Ordinance No. 6THCC-27 also known as the Revised Revenue Code of 2007 0f Santiago City.

3. That I am filing a complaint against Mr. Napoleon Nazareno, the President of Smart Communications, Inc., with Central Office Address at 14/F Smart Tower, 6799 Ayala Avenue, Makati City for violation of the Revised Revenue Code of 2007 0f Santiago City which were committed as follows;

a) That the abovementioned corporation is operating Four (4) Cell Sites at Santiago City specifically located at Barangay San Antonio Mabini, Barangay Rizal, Barangay Dubinan West and SCC Building Maharlika Highway;

b) Records of the Licensing office of the LGU-Santiago City show that the corporation has been operating the said cell sites without payment of the required Mayor’s Permit Fee under the Revised Revenue Code of 2007 of Santiago City which states that:

Sec. 2M.10. Administrative Provisions.

a. Requirement. Any person who shall establish, operate or conduct any business, trade or activity mentioned in this chapter in this municipality shall first obtain a Mayor’s permit and pay the fee therefore and the business imposed under the pertinent article.

c. A letter was sent on June 1, 2010 by the Licensing Office signed by the OIC Licensing Officer Atty. Earnest Soberano demanding the said corporation thru its President Mr. Napoleon Nazareno, to pay the required Mayor’s Permit Fee for the abovementioned four (4) cell sites. A Copy of the letter with the attached summary of fees and pre-assessment forms is hereto attached as Annex A and made an integral part hereof;

d. Smart Communications, Inc. was given by the City Government five (5) days from date of receipt of the letter within which to comply with the demand;

e. Despite the five (5) days allowance provided by the City Government, the Corporation failed to comply with the obligation or make a manifestation of its desire to settle the obligation;

4. That the failure of the corporation to pay the required Mayor’s Permit Fee is a clear violation of the Revenue Code of 2007 of Santiago City which empowers the City to file a Criminal Complaint against the President of the erring corporation as provided in Section 7.01 of the code which are hereby quoted as follows:

Section 7.01. Penalties for Violation of the Tax ordinance. Any person or persons who violates any of the provisions of this ordinance or the rules or regulations promulgated by authority of this ordinance shall, upon conviction, be punished by a fine of not less than One thousand Pesos (P1000) nor more than Five Thousand (P5000.00), or imprisonment of not less than one (1) month nor more than six (6) months, or both, at the discretion of the court

If the violation is committed by any juridical entity, the President, General Manager, or the individual entrusted with the administration thereof at the time of the commission of the violation shall be held responsible or liable therefore.

5. That I am executing this complaint-affidavit in order to attest to the truthfulness of my foregoing statements for the purpose of filing a criminal complaint for four (4) counts of violation of the Revised Revenue Code of 2007 0f Santiago City against the President of Smart Communications, Inc., Mr. Napoleon Nazareno.

IN WITNESS WHEREOF, I have hereunto set my hand this _____ day of ____________ 2009 at Santiago City.

AMELITA S. NAVARROComplainant/Affiant

SUBSCRIBED AND SWORN to before me on the same date and place.