Osmeña seeks dismissal of civil case on tipping fee

Cebu City Mayor Tomas Osmeña is seeking for the outright dismissal of the civil complaint filed by Asian Energy System Corp., operator of a private landfill in Consolacion, over the city government’s refusal to pay P32 million in tipping fee.

In his answer before the Regional Trial Court Branch 195 in Parañaque City, Osmeña admitted not paying the complainant because of “valid grounds.”

The mayor said there was no “genuine public bidding” because it was failed bidding. Despite of the alleged failure, the city government through his predecessor awarded the contract to the complainant.

According to Osmeña, the contract was given to the complainant based on a fraudulent certification that it was the sole supplier. He said the Department of Environment and Natural Resources-Environmental Management Bureau certified that there are other landfill operators in Cebu. In fact, EMB-7 director William Cuñado certified that there are 13 sanitary landfill operators in Cebu.

The Asian Energy filed a civil case for breach of contract, damages, and collection of sum of money against Osmeña for “unjust refusal” to pay.

According to the company, the city government owed them P32 million in tipping fees from March to August 2016.

Asian Energy insisted that the transaction was valid because it was done by way of a negotiated bidding because there were no other interested bidders. But Osmeña said the resolution of Bids and Awards Committee dated April 19, 2016 did not mention about the complainant’s having submitted its bidding documents.

“Interestingly, not even the Plaintiff, who had been rendering garbage disposal services to the defendant, submitted its bid,” Osmeña said.

He cited Section 53 of the Government Procurement Reform Act, which states that BAC "shall invite and engage in negotiations with a sufficient number of suppliers, contractors or consultants to ensure effective competition.”

Osmeña also argued that the purchase order, which was signed by then mayor Michael Rama did not have the approval of the City Council. The mayor said it is provided for under the Local Government Code that before the mayor can enter into a contract, a prior approval from the council is needed. The same requirement is also stated in Section 51 of the Revised Administrative Code of 1987.

"Thus, the subject purchase order signed by the mayor, but without any authorization from the sanggunian does not bind the Cebu City Government," Osmeña said.