City can’t reduce stall rental fee

By November 25, 2007Headlines, News

IT’S AGAINST THE LAW

THE request of stallholders at the Malimgas Public Market for a reduction in rental fee could not be granted by the new city administration as this is prohibited under the law.

      Councilor Jesus Canto, chairman of the market committee, dashed the hope of vendors as he cited the Local Government Code provision saying any reduction of rentals is possible only after five years from 2005 when the present rental rate was put in effect.

Malimgas Market was built in 2004 and made operational in 2005.

The existing rate of stall rental in the city’s public market was fixed by a city ordinance enacted during the administration of then Mayor Benjamin Lim.

The ordinance enacted by the previous city council cannot be amended or repealed before the lapse of five years, he said.

Furthermore, the reduction is prohibited by the Department of Finance without any valid reason.

Stall holders sought the reduction because they believe the previous administration set the rate higher than what was reasonable to enable the city to pay its huge loan for the construction of the market from the Land Bank of the Philippines.

The city borrowed P380 million to build the market with an air-conditioned second floor that is serviced by an escalator and a third floor designed as a pay parking area.

The new city administration already phased out the pay parking area upon learning that it was operated by contractors close to the previous administration who never remitted a single centavo as the city government’s share.

Canto, however, said the city council agreed to exempt blind people operating a massage parlor at the second floor from paying their share of the Common Usage Service Area (CUSA) in consideration of their status as people with disability.

He said this was not a reduction of the rental but an incentive granted to people with disability who enjoy priority under the law as they are earning honestly to the best of their ability.

The incentive cannot be granted to other stallholders, Canto said.

Even members of the Malimgas Aliguas Market Vendors Federation agreed that the blind people must be given consideration, Canto said.—LM

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