TAGUM City Mayor Allan Rellon and suppliers affected by the termination of supply contracts amounting to more than P200 million are both girding for court battle in what one city councilor described as “troubling, difficult and long-drawn.”
City legal counsel Arman Seras said in an interview to “let’s just wait. We’ll see then as Mayor Rellon is ready for the expected legal issue” that would arise following the final termination of contracts of the questioned deliveries.
He said the affected suppliers had already received the final termination letters of the city government two weeks ago.
Seras said Rellon’s decision of finally terminating the contracts has the “full support” of the advisory committee created for the completion of the new city hall.
The advisory committee is composed of the mayor, City Vice Mayor Geterito Gementiza, city council’s infrastructure committee chairman, Commission on Audit and Development Bank of the Philippines (DBP) representatives.
The affected suppliers are reportedly aghast at the mayor’s decision even as they earlier notified him that he might be facing several court cases should he terminate their contracts.
The mayor was said to have readied his battery of lawyers for their legal defense when the lawsuits come.
In earlier interview, Rellon said he will not be paying the “slightly over P200 million” worth of materials delivered by four suppliers who claimed to have already been used for the construction of the still-unfinished new city hall during the time of former Mayor Rey T. Uy.
Rellon said he would fight in courts for the validity of the termination of contracts for the deliveries he considered questionable and even questioned if they have in fact been for use by the new city hall at Apokon, Tagum City.
“There were purchase orders [POs], but there were no deliveries as certified by the city engineers and general services offices,” he said in an interview.
Four POs for various construction materials claimed to have been procured were dated between 2011 and May 2013, all not within his incumbency, he said.
There were four suppliers that would affected by the contract termination but only three responded to the letters of termination sent late last year.
These were the Ashlee General Merchandise Wansee Co. Inc., Durian Center and Robins Home Depot. Each including the unnamed one has varying claims for payables.
Their supposed payment would be sourced from the P231-million loan the city government through Uy got from the DBP, intended for the new city hall.
Expenses and cost, including the P231 million for the new city hall totaled over P800 million already.
The mayor said the concerned contractors had responded to his letters of termination and warned him they would file several cases against him.
The BusinessMirror tried but failed to contact Uy for comments.
But Councilor Dr. Oscar Bermudez in separate interview said, defending former Uy, that Rellon and other executive officials should “prove beyond reasonable doubt” in court that the deliveries were non-existent, “or he must be prepared to face the consequences.”