Mandaue sends Jadewell notice of rescission

CEBU, Philippines - The Mandaue City government has sent a notice of rescission to Jadewell Pay Parking Systems Corp., the firm tasked to oversee the pay parking collections and towing operations in the city.

The notice of rescission was sent to the company Friday after Mayor Jonas Cortes approved the recommendation of the city legal office headed by lawyer Giovanni Tianero to rescind the memorandum of agreement (MOA) signed between the towing firm and the city government.

The decision to rescind the contract of the towing firm came after the city found out that the firm had violated some provisions stipulated in the memorandum of agreement.

The notice of rescission was signed by city administrator James Abadia in behalf of Cortes.

Aside from the violations, the recommendation to rescind the contract was also based on the observation of the Commission on Audit such as its failure to post a P500,000 bond.

However, just recently the company denied it has not posted a bond as its CEO Mr. Rogelio Tan said that right after the signing of the MOA in 2003, the company immediately posted bond.

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

COA also said that most of its towed and impounded vehicles did not undergo public action after six months, a violation of city ordinance KK/017.

 COA said the city merely relies on the reports of the firm on its parking collections bringing uncertainty to the city's 10 percent share.

An audit on Jadewell's operation which was conducted by the city legal office found out that the firm was late in remitting the city's ten percent share. It also failed to remit the city's share for the months of April, May, and June.

The legal office also found out that Jadewell has some undeclared collections.

The firm was informed that the rescission of contract shall take effect sixty days after the receipt of the notice.

However, within the sixty days period, the firm can submit to Abadia's office a written explanation with supporting evidence on why rescission should not take effect.

Aside from the alleged violations committed by the firm, some motorists also complain about the alleged abuses of the firm's parking aides.