Mandaue City Government Negotiates Settlement of P9.3 Million Waste Disposal Debt After Eight-Year Impasse
The Mandaue City Government is finally taking decisive action to resolve a long-standing financial obligation, moving to pay off a P9.3 million debt for waste disposal fees that has remained unpaid for eight years. City officials are actively engaged in negotiations to reach a settlement, emphasizing that pursuing the matter through litigation could impose significantly higher costs on taxpayers.
An Eight-Year Deadlock Over Waste Management Services
The origins of this debt trace back to the period between 2011 and 2018, when Mandaue City lacked its own large-scale garbage landfill. During these years, the city heavily depended on a facility operated by Asian Energy Systems Corporation (AESC) located in Consolacion for its waste disposal needs. This reliance resulted in the accumulation of an approximate P9 million debt for dumping services rendered. Over time, due to legal fees and necessary adjustments, the outstanding amount has escalated to the current figure of P9.3 million.
After years of unsuccessful attempts to resolve the billing disputes, AESC escalated the matter by filing a lawsuit against Mandaue City in a Parañaque court to recover the owed funds.
Missing Documentation Halts Payment Processes
A critical question arises: why did the city delay payment for such an extended period? The City Environment and Natural Resources Office acknowledged that AESC indeed provided the waste disposal services, but payments were stalled due to incomplete documentation. Specifically, there was no formal written contract, such as a Memorandum of Agreement, signed between the parties during those years. The absence of this crucial paperwork created a significant barrier, as government auditors could not readily approve the disbursement of funds without proper contractual evidence.
Advocating for Fair Compensation and Fiscal Prudence
Despite the documentation gaps, Councilor Carlo Fortuna has strongly advocated for honoring the debt, arguing that it is only fair to compensate the company for its services. He emphasized that Mandaue City clearly benefited from the essential garbage disposal provided by AESC. "The city cannot benefit from a service and then refuse to pay for it," Fortuna stated. "Their claim is justifiable."
In a recent development, the City Council has authorized Mayor Thadeo Jovito 'Jonkie' Ouano to proceed with negotiations aimed at reaching a compromise agreement with AESC to finally settle the outstanding bill. While the deal is not yet finalized, the next steps involve city lawyers and the company agreeing on specific terms. Subsequently, the City Council and the Commission on Audit will conduct thorough reviews to ensure the agreement's fairness and compliance with regulatory standards.
By opting to settle now, Mandaue City aims to conclude an eight-year administrative and financial burden, ultimately safeguarding taxpayers from the potential expenses and prolonged proceedings of a court battle.
