Mandaue rescinds deal with tow firm

CEBU, Philippines - The Mandaue City government has finally rescinded its contract with towing firm Jadewell Pay Parking Systems Corp.

City legal Officer lawyer Giovanni Tianero told reporters the city has finally sent the firm a notice to rescind contract last Monday, giving Jadewell 60 more days to continue its operation.

In October 2011, the city legal office sent a notice of rescission to Jadewell, which gave the towing company 60 days to reply.

If the city is not satisfied with its reply, it will rescind its contract with the firm.

Tianero said among the reasons for the rescission was its failure to comply with some of the provisions stipulated in the contract, such as its failure to post a P500,000 bond and provide equipment and other materials stipulated in the memorandum of agreement.

The Commission on Audit (COA) also found some discrepancies with regards to its remittances to the city government.

‘The COA said Jadewell was late in remitting the city’s 10 percent share on parking fees collected.

Mayor Jonas Cortes said the city already has a tow truck but is toying with the idea of hiring the services of other towing firms.

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