DISPUTE BETWEEN CITY, ASIAN ENERGY OVER UNPAID GARBAGE SERVICES CONTINUES

The Cebu City Government and a private company specializing in solid waste management failed to reach an amicable settlement over the latter’s demand for a P32-million payment for its garbage disposal services in 2016. Regional Trial Court Branch 195 Judge Aida Estrella Macapagal decided then to proceed with the hearing of the case. Asian Energy filed a civil suit for breach of contract and sum of money with damages in November 2017 against Mayor Tomas Osmeña for unpaid waste disposal services that totaled P31,991,148. This already includes litigation expenses and damages. In a special power of attorney he executed, Osmeña said he is not willing to enter into a compromise agreement with Asian Energy since its transaction with the previous administration was illegal. Since it was not lawfully executed, the mayor added that the contract was considered “null and void.” Osmeña, in his answer earlier to the case filed by Asian Energy, said that the purchase order signed by former mayor Michael Rama violated the law as he had no authority from the City Council to sign it. The approval of the legislative body, he said, is required under the Local Government Code of 1991, Revised Administrative Code of 1987 and the Government Procurement Reform Act. In the complaint, Asian Energy said that the unpaid amount represents the tipping fee for garbage dumped by the City in their facility in Consolacion from March 14, 2016 to Aug. 31 of the same year. In the order, Judge Macapagal scheduled the pre-trial hearing of the case today. However, City Hall lawyer Bernard Inocentes Garcia said the opposing counsel has filed a motion to reset the trial on Oct. 23 due to conflict of schedule. /