AN INVESTIGATION is set by the city council on the lease contracts entered into by the Cagayan de Oro City Government with Chinese companies operating the most part of Carmen and Cogon public markets.
In his special report, City Councilor Edgar Cabanlas said terminating the contracts had long been his advocacy, pointing out that the contracts made by the previous administration were onerous and disadvantageous to the city.
The contracts, which were entered into by the city with 858 Market Complex Inc. and New Wishing Star Trading Inc. last April 5, 2011, shall last for 25 years - which means it will not end until May 31, 2036, 17 years from now.
Cabanlas noted that for every floor, the two companies are paying the city an amount ranging from P11 to P15 per square meter only every month.
For every five years, the rental fee increases to P1 per square meter.
Despite the low rental fees, Cabanlas said the vendors are made to pay higher fees.
In a month, the companies only pay P13.75 per month for a 7,000 square meter area, while ordinary vendors are made to pay P8.75 per day, and not per month, for the same floor area.
This means that the companies pay only P91,000 per month, while the vendors pay over P1 million per month.
Cabanlas described it as a discrepancy.
Cabanlas also hit the entry of co-lessees such as Unitop General Merchandising Inc.
Under the contract, the co-lessees shall be considered as legitimate as part and parcel of the original leased premises to the lessee and shall be jointly liable to pay to the lessor any financial obligation the lessee may fail to comply.
“Kung naa kay balay gipa-pletehan, unya ila pud pa-pletehan sa lain, sugot ka? Sila na magbuot?” Cabanlas said.
The contract also stipulated some promises of the companies that, up until now, were not realized.
Among these promises include the flooring composition, which should be ceramic, marble, or granite; the installation of eight escalators and two elevators; the repaint of interior and exterior premises; and the addition of glass walls.
“This is approved without public hearing, no explanation. Our concern, nganong sa Intsik man? Nganong wala gihatag sa kabus? Mao nang nanglayas ang vendors naa sa kadalanan,” he said.
For City Councilor Eric Salcedo, the contract should be terminated and the market given to Filipino vendors.
He said the city, in behalf of the people of Cagayan de Oro, should file a case for the cancellation of the contract.
The City Council will convene as the committee of the whole and will start the probe next week.
The late former mayor Vicente Emano and 13 city council members were brought to court by eight market vendors for dishonesty and grave misconduct.
The vendors were ousted from the newly-built, three-story market complex in Cogon market when it opened in 2005.
However, Emano was cleared of administrative charges in 2005.