CONTRACT OR MOA STILL MISSING

But it’s not yet off-the-hook

THE effort to determine if there was indeed a contract for the towing service in the city appears to have been foiled.

After feeling the heat from under its collar, JLD Motor Works and Towing Service made a hasty retreat from Dagupan City as gleaned from the company’s letter to the city government on Tuesday without clearing the air on how it came to be contracted as the official towing service company in the city.

A letter of the company received by the office of City Administrator Rafael Baraan conveyed the desire of the firm to terminate its towing service even as it is being asked by the city council to submit a report on its actual collection of towing fees from motorists violating the Comprehensive Traffic Ordinance of the city.

The proprietor of the company, Jaime de la Peña of barangay Sta. Maria, San Jacinto, ignored the invitation of the city council for him to appear in its session on two occasions to prove his company’s legitimate operations in towing and clamping vehicles, collecting towing fees of P1,100 per motor vehicle caught violating the ordinance.

To date, the city’s executive department has not submitted a copy of the contract or memorandum of agreement (MOA) supposedly entered into by the city government and JLD despite persistent requests by the city council.

The highly suspicious deal came to the fore when Councilor Michael Fernandez exposed the alleged unauthorized fees being collected by the city government, such as in the city plaza, without the benefit of an ordinance.

The concerned bloc in the city council now wants to nullify the contract or MOA between the city and JLD if it existed because the council did not authorize it.

But the city mayor’s ally, Councilor Teofilo Guadiz III, a lawyer, advised that the city council merely ask Mayor Lim to stop JLD from further towing vehicles since it was not proven yet if a contract or MOA really exists.

The voluntary termination of the company of its service to the city came a day after the city council, on motion of Councilors Danilo Torio and Alex De Venecia, passed a resolution asking City Administrator Rafael Baraan to finally cease and desist from using the services of JLD.

The resolution was passed after Councilor de Venecia ascertained from Public Order and Safety Office Chief Robert Mejia during a committee hearing on February 7, 2006 that he had not seen the contract for the towing services in the city.

Only Mejia, from among the seven senior officials invited, who attended the committee hearing, upsetting De Venecia who conducted this in his capacity as chairman of trade and industry upon the instruction of Vice Mayor Alvin Fernandez.

In his committee report on Monday, De Venecia said that when he asked Mejia twice if there was really a contract between the POSO and the JLD, the latter answered in the negative.

Similarly, when Mejia was further asked if there was a contract between the executive department and the JLD, he answered “None that I know of.”

In previous sessions, One-Stop-Business-Shop chief Digna Liwanag, City Treasurer Romelita Alcantara and City Legal Officer Geraldine Baniqued also admitted they have yet to see a copy of the contract or MOA of the city with JLD.

Alcantara was the biggest surprise of them all when she revealed that the towing fees being collected by JLD, and acknowledging the collection with its own official receipt, are divided by the city and JLD at 20-80, in favor of the latter.

She pointed out, however, that the city earns the full impoundment fee of P1,000 per vehicle.

Vice Mayor Fernandez said all the resource speakers invited by the city council to shed light on the matter had attested that towing by JLD started way back in 2005.

But for reasons only known to the city officials, it was only in January 2006 when the executive department asked for an authority from the council to enter into contract with JLD.

The council is now mulling the formation of a special committee that will investigate all those involved in the transaction that may have already defrauded the city of a substantial amount of revenue for more than two years.

Observers opined that the voluntary termination of service by JLD did not extinguish the possible criminal liability of the towing firm in a complaint that may be brought up by any taxpayer who suffered from the illegal towing, including those inconvenienced and embarrassed by the towing firm and made to pay the huge fine after their vehicles were towed and or clamped.

Vice Mayor Fernandez suggested that the city government purchase its own towing truck to enforce its own traffic ordinance.

He said the city government must buy its own tow truck even if it will cost more than a million pesos because it has become a necessity in the city.

Believing that there was a contract entered into by the mayor and JLD, Fernandez asked the Pre-qualification Bids and Awards Committee of the city to submit to the city council the minutes of its bidding on the JLD contract.

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