Osmeña sued over garbage

Asian Energy Corp. has sued Mayor Tomas Osmeña for refusing to pay the P32 million tipping fee the city owes the company when it dumped its trash at its landfill in Consolacion town in 2016.

The company through its president, Cipriano Abdon, filed a case for breach of contract and damages against Osmeña before the Regional Trial Court in Parañaque City.

Contrary to Osmeña’s claim that the arrangement the city entered into during the time of former mayor Michael Rama was anomalous, Asian Energy Corp. said the transaction was legal because it was done through a negotiated bidding.

At that time, no other company reportedly showed interest to render service to the city during two scheduled biddings on March 29, 2016 and April 14, 2016.

The city was forced to look for other landfills that year after its landfill in Barangay Inayawan was closed for environmental violations.

Asian Energy Corp. supported its case with a copy the resolution of the Bids and Awards Committee, which Rama approved, detailing the procurement pursuant to Section 53 (a) of Rule XVI of the Implementing Rules and Regulations of the Republic Act 9184 or the Government Procurement Reform Act.

Section 53 (a) provides that “negotiated procurement shall be allowed only in the following instances…In cases of two failed biddings, as provided in Section 35 hereof.”

It states further that before they received the notice of award for Procurement 1 Lot Garbage (Solid Waste) disposal services amounting to P 32 million on April 27, 2016, a canvassing was done by BAC upon the facilities of Asian Energy Corp.

Rama then approved the Abstract of Canvass and Awards. Abdon said the city has an obligation to pay the company P32 million as tipping fee because Asian Energy Corp. has fulfilled its end of the contract.

The P32 million represents the use of the private landfill from March to August at P700 for every ton of garbage.

“That such PO No. 398 of the City of Cebu constituted a contract between the City of Cebu and the plaintiff and, as such, has the force of law between the parties (Laureano vs. Court of Appeals) and must be complied with in good faith (Art. 1315, Civil Code of the Philippines),” the complaint reads.

It was in June 2016 when Asian Energy Corp asked city government to pay the P32 million tipping fee.

Osmeña who has just been elected mayor at that time refused to pay because the contract between the city and Asian Energy Corp. was invalid as it was not approved by the City Council.

The company asked the court to order the city to pay the unpaid landfill tipping fee, another P500,000 for exemplary damages; P100,000 for nominal damages; and P3.1 million for attorney’s fees.

The company also said Osmeña is also obligated to pay P7,500 as appearance fee per hearing and meeting; P100,000 for litigation expenses; and the cost of suit amounting to P745, 711.50.

CITY RESPONSE

Atty. Bernard Inocentes Garcia of the City Legal Office said they have just received a copy of the complaint and will ask the court to extend the 15-day period within which to file a response.

Osmeña, for his part, said he will let the court rule on the matter.

"A contract is not valid without approval of the city council. Let court decide. The signature of purchase order by department head is not a contract with the city government," he said.

Last year, the mayor lodged criminal and administrative charges against the Asian Energy Corp., Rama, and the members of the Bids and Awards Committee.

Osmeña accused them of graft, falsification of public documents, grave misconduct, serious dishonesty, and gross neglect of duty.