PB won't step into Madridejos conflict

CEBU – The Provincial Board will not dip its finger into the ongoing conflict between Madridejos Vice Mayor Doroteo Salazar and the town’s council over the shelved construction of the Kaongkod Port in the municipality.

Board Member Peter John Calderon, chairman of the PB committee on laws and review on ordinances, said it is beyond the power of the board to act on a resolution passed by local government units for particular development projects or to terminate the contract of such development projects, more especially if there is no clear cut evidence to do so.

Citing Section 468 of the Local Government Code, Calderon explained that the powers and functions of the board are “not absolute and is limited only” to a specified rule.

“It may be worthy to note that it is beyond the power of the Sangguniang Panlalawigan to receive evidence in this kind of controversy and rule on a violation of a contract except on the performance of the provision in the contract,” the report reads.

In a letter to the board, Salazar opposed the passage of the resolution that the Madridejos municipal council passed last September 22, which canceled the contract earlier entered into by the municipality and the Madridejos Development Inc. for the construction of the Kaongkod Port.

Salazar asked the board to declare the resolution "illegal and of no force and effect."

The Madridejos municipal council canceled and rescinded the contract under the build-to-operate transfer scheme between the town and MDI because MDI allegedly failed to full its obligations to the town.

Although the estimated cost of the project remains undisclosed, MDI, under the agreement, was reportedly required to obtain motor vehicle liability insurance and workmen compensation insurance.

But MDI reportedly failed to fulfill these requirements allegedly because the company has been dormant for more than five years and has already been deleted from the list of corporations of the Securities and Exchange Commission.

Such length of dormancy, the council said, paved the way for MDI to be automatically dissolved as a corporation. – Garry B. Lao/JMO (THE FREEMAN)