Rescission of contract between Mandaue, towing firm sought

CEBU, Philippines -  The Mandaue City Legal Office recommended to Mayor Jonas Cortes the rescission of the contract that the city entered into with towing firm Jadewell’s Parking System Corporation.

City legal officer Giovanni Tianero’s recommendation was made after it was found out that Jadewell violated some provisions stipulated in the memorandum of agreement.

Aside from the violation, the recommendation to rescind the contract was also based on the observation of the Commission of Audit.

Under the MOA, the towing firm is tasked to oversee Mandaue City’s towing and parking operations. Tianero also recommended that the rescission will take effect 60 days after the notice has been served to Jadewell.

State auditors observed that Jadewell failed to post a P500,000 performance bond, in violation of the MOA.

The firm also allegedly failed to provide some equipment and other needed materials in its operations as required under the MOA.

COA also observed that most towed and impounded vehicles did not undergo public auction after six months, in violation of City Ordinance No. KK/017.

This allegedly resulted in the non-collection of prescribed charges, surcharges and penalties.

COA observed that the city merely relied on reports from the firm on parking collections without verifying them, bringing uncertainty to the accuracy of the 10 percent share of the city on the parking collections.

Aside from COA’s observation, the city legal office also made its own audit on Jadewell’s operations to determine if it complied with the MOA.

It was reportedly discovered that Jadewell has been late in remitting the city’s 10 percent share.

The firm also allegedly failed to remit the city’s share for the months of April, May and June collections.

The legal office also discovered that Jadewell has some undeclared collections, which is allegedly in violation of the MOA.

The MOA was entered into by former mayor Thadeo Ouano and Jadewell in 2003.

The FREEMAN tried to contact Jadewell last night but it could not be reached for comment. —(FREEMAN)