Asec, LTO7 head sued over unused extension office

CEBU - A corporation that offers free office space for the Land Transportation Office has filed a civil case for damages against transportation assistant secretary Alberto Suansing and LTO regional director Raul Aguilos for the agency’s alleged refusal to use the building built for its extension office in Talisay City.

Matvel Holding Corporation, which owns the Talisay South Central Square in barangay Lawaan, is demanding a total of P652,500 in exemplary damages and reimbursement of the litigation costs from the two officials.

The corporation, through its president Mateo Velasco, alleged that they have entered into a memorandum of agreement with LTO for the transfer of the Talisay extension office to the building they constructed at the Talisay South Central Square.

The MOA was signed on May 14, 2007 by Velasco and then LTO-7 director Alex Leyson.

Based on the agreement, the corporation will construct a building for the LTO extension office and allow the agency to use the building for free via a usufruct contract for 25 years.

Under the MOA, LTO’s obligation is reportedly only to transfer its extension office to the new building provided to them by Matvel Holding and continue to discharge its mandate, which include the registration of new motor vehicles, renewal of registration and issuance of licenses.

On July 9, 2007, transportation secretary Leandro Mendoza issued a memorandum for the transfer of the Talisay LTO extension office to the new location.

Velasco said that sometime in September, they informed Mendoza that they have already complied with their obligation in the MOA and that a new building was already built ready for the LTO’s transfer.

In fact, the two-storey building, which has a total floor area of 419 square meters, was already accepted by the acceptance team of the LTO.

Despite these, Matvel Holding said Suansing and Aguilos allegedly failed to transfer the Talisay extension office up until now.

The complainant claimed that Suansing and Aguilo’s refusal to comply with the MOA have caused Matvel Holding to “suffer great damage and injury.”

Velasco is demanding P500,000 exemplary damages; P100,000 attorney’s fees; and P2,500 equivalent to every appearance of their counsel in court and for other litigation expenses amounting to P20,000.

Velasco likewise prayed for the issuance of a temporary restraining order against the two officials and a writ of preliminary injunction, if the court warrants. — Fred P. Languido/JMO (THE FREEMAN)