BAGUIO CITY – Mauricio G. Domogan warned the plan of the local legislative body to unilaterally rescind the contract between the local government and the Uniwide Sales and Realty Development Corporation for the development of the public market will be detrimental to the city because it will open the floodgates for the filing of charges by the aggrieved party.
He pointed out rescinding the 20-year old market development contract will be an admission on the part of the city that there is a valid and binding contract between the two parties and that one of the parties committed violations of the agreement that will warrant the proposed rescission of the contract.
“We have to be careful in our actions relative to the existing market development contract to avoid the local government being exposed to future charges that will make the city at the losing end of the deal,” Domogan stressed.
The local chief executive underscored Uniwide, which is being subjected to receivership and liquidation, has signified its intention to pursue the long overdue development of the city’s market facility as it has partners to help the company bankroll the multi-billion project.
Earlier, the Supreme Court (SC) upheld the decision of a local court and the Court of Appeals declaring the constitutionality of Ordinance No. 038, series of 1995 that prescribed the rules and regulations for the development of the public market and the legality of the contract that was an offshoot of the ordinance.
Domogan claimed the unilateral rescission of the market development contract will result to the filing of the appropriate charges against the local government by no less than Uniwide that will further delay the implementation of the project that will leave behind the city’s market in terms of improvements.
The local legislative body pans to invite the members of the review committee created by Mayor Domogan for them to shed light on their findings and recommendations on what the city should do to pursue the development of the market facility.
Further, the council also invited officials of the Uniwide Sales and Realty Development Corporation for them to explain the status of the company and its capacity to implement the multi-billion market development which had been stalled for over two decades after several groups of market vendors questioned the legality of the contract with Uniwide and the constitutionality of the ordinance.
Copies of a Court of Appeals (CA decision that upheld an earlier ruling of a local court ordering the liquidation of Uniwide was furnished the members of the local legislative body which is now being used as one of the basis for the city to rescind the market development contract.
Domogan said the city must have a unified stand on the matter which shall be reached through the conduct of a thorough study on the possible merits or consequences of their possible actions in the future.
By Dexter A. See