Termination of Uniwide contract pressed
BAGUIO City Councilor Peter Fianza has called for the cancellation of the city’s controversial agreement with Uniwide Sales Realty and Resources Corporation for the development of the Baguio city public market.
“It is now imperative for the city to set aside the DBL (Design-Build-Lease) agreement with Uniwide to pursue the needed development of the city public market,” Fianza said in a resolution
The city awarded the development of the market to Uniwide in 1996, giving rise to court cases questioning the bidding and he award.
The Uniwide group of companies, however, was declared insolvent by the Regional Trial Court of Paranaque, Branch 258 on November 23, 2017.
The court followed up with another decision on April 16, 2018 appointing retired Supreme Court Associate Justice Martin Villarama Jr. as liquidator of the assets of Uniwide.
Fianza pointed out under Sec. 113 of Republic Act 101142, otherwise known as the Financial Rehabilitation and Insolvency Act of 2010, “the judicial debtor shall be deemed dissolved and its corporate or judicial existence terminated; legal title to and control of all the assets to the debtor, except those that may be exempt from execution, shall be deemed
vested the liquidator or, pending his election or appointment, with the court; all contracts of the debtor shall be deemed terminated and/or breached, unless the liquidator within ninety days from the date of his assumption of office, declares otherwise and the contracting party agrees.”
Aside from asking the design-build andlease agreement be deemed breached and terminated, Fianza moved to authorize the city mayor to immediately communicate and coordinate with the liquidator of the Uniwide group of companies or to take such immediate and necessary action to have the DBL agreement declared canceled, terminated or nullified”.