Mandaue City rescinds contract of towing firm

The Mandaue city government announced that their contract between Jadewell Parking System Corp. has been rescinded effective May 5, 2012, after the lapse of the 60-day rescission period.

Mandaue City legal officer lawyer Giovanni Tianero said yesterday that the contract with the private firm signed in 2002 has been rescinded due to the failure of the private contractor to perform its obligations.

Among the things Jadewell failed to do was establish a pay parking system in the city, which would have entailed the construction of permanent parking areas.

It also didn’t install and operate electronic parking meters and an on-street parking management system.

Tianero said the City Treasurer’s office was already ordered not to renew the business permit of Jadewell since February this year.

He also warned the public that any operations of Jadewell after May 5 is already considered without legal basis. “If they continue towing vehicles, it will be considered a common crime,” he added.

Last year Mandaue City Hall started the legal action to terminate the contract with Jadewell after it failed to post a performance bond and received complaints about its performance. The contract would have ended in 2015.

A notice of rescission to Jadewell Parking System Corp. was sent late last year; it also gave them the time to explain their side.

“Jadewell could no longer question our actions because we have already given them the chance,” he said.

Vehicles impounded by Jadewell for more than six months were not auctioned in violation of a city ordinance and its failure to collect charges and penalties also resulted in loss of income for the city.

Tianero said the Traffic Enforcement Agency of Mandaue (Team) board is already implementing the local traffic ordinance and taking care of the operations with the use of one towing truck of the city government.

Tianero said the Team still lacks an impounding facility for towed vehicles pending the development of a vacant lot in the sports complex and the motor pool.

But Tianero said the Team could issue citation tickets with corresponding penalties to traffic violators.

Earlier, City Administrator James Abadia said the city government will purchase additional towing trucks capable of pulling trucks weighing over 20 gross tons./Correspondents Fe Marie D. Dumaboc and Norman V. Mendoza