No violation in contract of Chinese bizman

THE legal counsel of a Chinese businessman who rented the entire second floor of Carmen Market said his client did not violate the provisions of the contract provided by the City Government.

Lawmaker Mario Juni, legal counsel of New Wishing Star Corporation, reminded the City Government that his client always abided with the provisions of the contract.

Juni said the allegations against his client, Jacky Ching, have no legal basis.

Cagayan de Oro City Mayor Vicente Y. Emano earlier issued orders to cancel the contract of Ching for alleged violations.

Emano issued a formal notice to the corporation for the termination of the contract of lease last May 25, 2012.

Ching was reportedly given one month to send his reply to the notice of termination.

But Juni said it was clearly stated in the contract that the lessee, which is the New Wishing Star Corporation, may enter into a separate partnership, joint venture and/or similar agreements with Unitop General Merchandise Inc., and/or other business entities.

“And for all intents and purpose, they shall be treated and considered as legitimate co-lessees,” he said.

As preferential policy, Juni said the lessee and its business partners, associates and sub-lessees shall pay the City Government the charges of business permits, while all the real estate taxes and charges related to the leased premises shall be for the account of the lessor.

He said while waiting for the City Government, which was considered as the lessor, to arrange the existing vendors at the ground floor and the second floor, the lessee will already renovate and use the third floor.

As to the absence of a police post, Juni said this has been duly complied as early as March 2012.

“We have already requested Mayor Emano to inspect the proposed police station, which is now ready for occupancy,” Juni said.

With this, he requested that the notice of termination be recalled and his client be given a chance to make amends and iron out any kinks in the implementation of the terms and conditions of the contract.

Alleged violations

Ching earlier inked an agreement with the City Government to rent the entire second floor of the Carmen Public Market where the P250-million Unitop Department Store and Supermarket is located and some portion of the market’s ground floor.

Earlier, City Administrator Leon Gan said Ching has violated three provisions of the contract, which the City Government will not tolerate.

Gan said the alleged major violation of the businessman is when he “subleased the entire second floor by accepting Unitop Department Store and Supermarket” as his tenant.

Ching’s rented area at the ground floor has also been subleased to some tenants.

According to the stipulated contract, Gan said, Ching is not allowed to sub-lease the building and that he was only required to use it on what was agreed, “by putting up his own store and not to accept tenants.”

“Subleasing the building to other parties is a grave offense,” Gan said.

Under paragraph 10 of the contract, Ching may only enter into separate partnership, joint venture and or similar agreements with Unitop General Merchandise Inc.

He said the agreement did not provide for sub-leasing Ching’s leased premises to third parties, rather, his options were expressly limited to a partnership, joint venture or a similar contract with Unitop or other business entities.

The businessman’s other alleged violation is the non-construction of a police post inside the market, which was also included in the agreement.

Under paragraph 15 of the contract, Ching was directed to establish and create a Police Station Office on the leased premises of the second floor.

Gan said aside from not providing the police post, Ching also did not accommodate the vendors who earlier occupied the second floor.

Ching allegedly promised the vendors that they will be “relocated to a much better place.”

In the agreement, Gan said Ching would shoulder the construction of the stalls outside the area where the vendors will be relocated but until now, “no action has been taken.”

However, Mayor Emano said “New Wishing Star Corporation will not be tolerated.”

“Aside from the violations of contract, they have tried to outsmart me by inserting some entries into the contract that violated the verbal agreement they had with me when they announced their intention to rent the second floor and an area at the ground floor of the market building late last year,” Emano said.

The mayor said had the contract wasn’t strictly reviewed, he may have signed it.

He said when the camp of Ching was reprimanded, they even admitted the insertions.

“Because the contract document is thick, they didn’t expect that we would discover unnecessary insertions which would actually violate the agreement. They intend to outsmart the poor people and not me. That’s what I hate,” Emano said.

He said New Wishing Star Corporation had started leasing in December 2011, months after the City Legal Office found out that the prepared contract was defective.

“The contract was reviewed for me to sign. But since we discovered that it was defective, I did not sign it. We want to elevate this to the court to be fair before we cancel the contract,” the mayor said.

He said they earlier agreed that New Wishing Star Corporation, the leasing company, would not display meat, fish and vegetables that are already available at the first floor so as not to affect the sales of small-time vendors.

However, he said when Unitop started, fish and meat products were sold but Emano ordered that this be pulled out so as not to affect the sales of the small vendors.

“I allowed them to lease the areas to generate employment on the condition that their set-up is only as a department store as they would kill the poor vendors. They have bigger investments compared to lowly stall owners,” he said.

The mayor also criticized New Wishing Star Corporation for subleasing the rented area to Unitop.

“Approximately, Jacky Ching receives more than P600,000 rent per month from the subleased area at the second floor while he pays the city government only P150,000 as rent per month. In fact, he was not the one who spent for the establishment of Unitop. A very naughty man,” Emano said.

He said the City Government has no choice but to hold the leased area for bidding.

“Unitop Department Store can actually join in the bidding,” he added.