Sun.Star Cebu

Cebu City Hall ‘ready’ to pay landfill owner?

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Provided that the terms and conditions are legal, the Cebu City Government may enter into an amicable settlement with Asian Energy Systems Corp.

In an interview, City Hall lawyer Bernard Inocentes Garcia said that this was among the terms and conditions set by the City in its pre-trial briefs submitted to the Regional Trial Court Branch 195 in Parañaque City.

The court had required the City to include in its pre-trial briefs its willingnes­s to enter into an amicable settlement and its desired terms.

“Our position is that the City Government does not have a valid contract with Asian Energy Systems Corp. The City may enter into a compromise agreement provided that the terms and conditions are legal, just, and equitable and the City Government’s interest is protected,” Garcia said.

The court has started looking into the case that Asian Energy filed against the City over the latter’s refusal to pay P32 million in garbage disposal services in 2016.

Last November, Asian Energy filed a civil suit against Mayor Tomas Osmeña for breach of contract for not paying P31,991,148 in tipping fee when the City dumped its trash at its landfill in Consolacio­n, Cebu from March 14 to Aug. 31 in 2016.

Garcia appeared before the court yesterday in behalf of the mayor during the preliminar­y conference.

He said both parties have marked their documents, and that the pre-trial was moved to June 28, instead of May 3.

“(It was moved) by agreement of the parties. There was a conflict of schedule,” Garcia added.

At City Hall, Osmeña stood pat that the transactio­n was invalid, and that paying the service provider might earn him a disallowan­ce from the Commission on Audit (COA).

“My position is very clear. There is no contract. I’m not going to jail for (former mayor) Michael Rama. I might end up being disallowed and go to jail. I’ve learned my lesson before. There is no settling in an illegal transactio­n. The only one that can sanction a settlement is COA. I got into a settlement before and got a disallowan­ce from COA. I can’t (settle), even if I wanted to,” he said.

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