Mandaue City Government Seeks Settlement of P9.3 Million Waste Dispute
The Mandaue City Government is taking decisive action to resolve a long-standing financial obligation of P9.3 million related to unpaid waste disposal fees. City officials have emphasized that further delays in addressing this issue could result in significantly higher costs for the municipality, prompting urgent negotiations.
Council Approves Resolution for Compromise Agreement
Councilor Carlo Fortuna has confirmed that the City Council has approved a resolution authorizing Mayor Thadeo Jovito “Jonkie” Ouano to negotiate and finalize a compromise agreement with Asian Energy Systems Corporation. This company previously managed the city's solid waste disposal operations and remains the sole facility in Metro Cebu currently accepting Mandaue's waste.
"In summary, the committee report recommended that Mandaue City enter into a compromise agreement with Asian Energy Systems Corporation," Fortuna stated, highlighting the critical nature of maintaining waste management services while resolving the financial dispute.
Origins of the Debt and Legal Proceedings
The conflict originates from unpaid billing totaling approximately P9 million for services rendered between 2011 and 2018. This amount has since accrued to P9.3 million due to accumulated interest and penalties. Asian Energy Systems Corporation has already initiated legal action by filing a collection case against Mandaue City in a Parañaque City court, where the matter is currently awaiting judicial decision.
Rather than risk an unfavorable court ruling that could impose additional financial damages, city officials are advocating for an early settlement through compromise negotiations. "We had a meeting with different city departments, and the recommendation is that it is better to settle through a compromise agreement instead of waiting for a decision that might include additional damages," Fortuna explained.
City Acknowledges Service Receipt and Legal Principles
The City Environment and Natural Resources Office has verified that Mandaue indeed utilized Asian Energy's waste disposal services during the period in question, even in the absence of a formal memorandum of agreement. Payment delays were reportedly caused by incomplete documentary requirements at the time.
"Even without a memorandum of agreement, it is clear that we were served. Their claim is justifiable," Fortuna acknowledged. He further referenced the legal doctrine of Unjust Enrichment, emphasizing that the city cannot ethically benefit from services without providing appropriate compensation. "It is clear that we received the service, so we should pay for it," he asserted.
Negotiation Process and Future Implications
Under the approved resolution, legal representatives from Mandaue City will engage with Asian Energy's legal team to establish the specific terms and conditions of the compromise agreement. Once mutually agreed upon, the settlement will require formal approval from the City Council and subsequent processing through the Commission on Audit to ensure compliance with governmental financial regulations.
Fortuna issued a stern warning about the potential consequences of prolonging the legal battle. "If we lose and the case goes up to the Court of Appeals or even the Supreme Court, it will take a long time and the city may end up paying more," he cautioned. He added that a court-approved compromise agreement would enable the city to fulfill its financial obligations more efficiently while mitigating future legal risks and associated expenses.
