Mayor to court: Dismiss case filed by Asian Energy

SAYING that the contract the former administration entered into was not binding, Cebu City Mayor Tomas Osmeña wants the court to dismiss the complaint that a private service provider filed against the City Government over the close to P32 million unpaid dues for garbage disposal services.

In his answer to the complaint filed by Asian Energy Systems Corp., Osmeña said that the purchase order signed by former mayor Michael Rama violates the law as he has 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.

“There is no document showing that the former mayor was authorized by the Sangguniang Panlungsod of the City of Cebu to enter into a contract with the plaintiff for the procurement of garbage disposal services. Without such actual authority, there could be no real consent, much less a perfected contract, to speak of. Thus, the subject purchase order signed by the mayor but without any authorization from the Sanggunian does not bind the Cebu City Government,” said Osmeña.

In a complaint filed last Nov. 2, Asian Energy demanded the payment of P31,991,148 for their waste disposal services.

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.

Aside from the absence of a contract, Osmeña argued that Asian Energy was a favored supplier.

This, since the previous administration’s bids and awards committee (BAC) did not conduct a “genuine” public bidding for the garbage disposal services.

Osmeña said the previous BAC held a bidding last March 29, 2016 and April 14, 2016, but it was declared a failure since no bidder submitted their bids.

Osmeña stood firm that the City will not pay Asian Energy. (RVC)
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