THE Mandaue City Government is finally working to pay off a P9.3 million debt for waste disposal fees that has gone unpaid for eight years. City officials are trying to negotiate a deal now, warning that fighting the issue in court could end up costing taxpayers a lot more money.
The problem goes all the way back to the years between 2011 and 2018. During that time, Mandaue City did not have its own large garbage landfill, so it relied heavily on a facility run by Asian Energy Systems Corporation (AESC) in Consolacion.
The city built up a debt of about P9 million for dumping its trash there. Over the years, because of legal fees and adjustments, that number has grown to P9.3 million.
After years of failing to sort out the bills, AESC finally filed a lawsuit against the city in a Parañaque court to collect the money it is owed.
Why did the city wait so long to pay? The City Environment and Natural Resources Office admitted that the company did the work, but the payments were frozen because of missing documents.
Specifically, there was no formal written contract (Memorandum of Agreement) signed during those years. Without that contract, government auditors couldn't easily approve the payment.
Despite the missing paperwork, Councilor Carlo Fortuna argued that it’s only fair to pay the company.
He explained that the city clearly benefited from the garbage service. "The city cannot benefit from a service and then refuse to pay for it," Fortuna said. "Their claim is justifiable."
The City Council recently gave Mayor Thadeo Jovito “Jonkie” Ouano the green light to negotiate a compromise with the company to finally settle the bill.
The deal isn't completely done yet. Once city lawyers and the company agree on the terms, the City Council and the Commission on Audit must double-check the agreement to ensure it is fair. By settling now, Mandaue City hopes to close an eight-year headache and save taxpayers from an expensive and lengthy court battle.