The Baguio City Council during its regular session last Monday probed into the alleged breach of obligations of Rapid Process Inorganic Technology (RAP-PORT) Innovation Corporation which was reportedly the cause of a foul odor affecting the residents of Purok 17, Irisan Barangay.
In his letter to the city council dated May 7, 2021, Mayor Benjamin Magalong urged the legislative body to confirm the termination of the memorandum of agreement (MOA) between the city government and RAP-PORT as the latter allegedly failed to fulfill its obligations which include the implementation of an effective system that will control or treat the leachate that is generated during biological waste operations, causing nearby residents to complain about the stench coming from the facility.
The executive department’s decision to terminate the MOA emanated from the reports prepared and site inspections conducted by the General Services Office (GSO).
With the request of the chief executive on hand, the city council decided to invite RAP-PORT, the GSO, and the City Legal Office for a forum in aid of legislation.
General Services Officer Eugene Buyucan reported that the company failed to construct a drainage system and a waste water tank to control the leachate coming from the Environmental Recycling System (ERS) machines and also failed to introduce a special technology for the treatment of wastewater. With the absence of proper equipment, the biodegradable wastes are being processed through shredding only, Buyucan added.
Likewise, the report indicated that the company was not able to maintain the condition of the ERS machines.
All of the aforementioned obligations, which the company allegedly failed to fulfill, are stipulated in the MOA that was signed by both parties in 2018.
Atty. Zaldy Von Francisco, legal counsel of RAP-PORT, disclosed that a request for a dialogue with Magalong has been lodged for a possible amicable settlement, invoking Section 13 of the MOA which stipulates that disputes can be elevated to the courts in the event that the involved parties cannot settle the matter amicably.
Francisco disputed the claim that the company has committed gross negligence, adding that the company has continued to operate to the best of its ability despite encountering setbacks brought about by the ongoing pandemic.
Atty. Richard Dayag, Acting City Legal Officer, however, said the city government has the right to terminate the contract for “gross violation or gross neglect of obligations” and “abandonment of the Materials Recovery Facility (MRF) or the Environmental Recycling System (ERS) machines” as stated in Article 10 of the MOA.
The councilors pointed out that this matter is an environmental and health issue as much as it is a legal issue. They urged RAP-PORT to coordinate with the GSO and immediately address the problems raised by the affected residents.
RAP-PORT gains profit by selling the fertilizers that are produced in processing compost materials from the biodegradable wastes collected in the city.
According to Buyucan, the City’s share in the profit derived from selling the fertilizers has not yet been remitted by RAP-PORT.
The five-year contract stipulates a profit-sharing scheme where RAP-PORT shall pay LGU-BAGUIO P3.00 per kilogram of raw compost for the first year of operation, P4.00 for the second year, P5.00 for the third year, and P6.00 for the fourth and fifth years.
Francisco claimed RAP-PORT has not sold the amassed sacks of fertilizers as the COVID-19 pandemic has affected the company’s ability to negotiate with potential buyers.
The company’s inability to gain profit has casted doubt on its capacity to recoup their financial losses in order to further operate and maintain the facility.
“They were not able to sell the fertilizers. How could you operate with a zero income?” Buyucan stressed.
According to Article 11 of the MOA, in case of a termination of the contract, RAP-PORT shall continue to manage the facility at the same contract rate until such time that a willing and able party officially enters and undertakes to perform all the obligations.”
The city council requested the GSO to provide a more detailed report indicating therein the company’s level or percentage of compliance/non-compliance with each obligation along with other pertinent documents subject to study so as to arrive at a fair assessment whether gross negligence has been committed or not.
“The law requires that, to terminate a contract, there must be a serious or gross violation of the contract. I ask my colleagues to pay very close attention because, if we make a mistake in acting on this matter, we may be subject to a possible court suit,” Tabanda cautioned.
Chaired by Tabanda, the Sanggunian’s Committee on Laws, Human Rights, and Justice shall study the matter further and provide its recommendations in the next regular session. **Jordan G. Habbiling
