Supreme Court upholds Jancom garbage contract

The Supreme Court upheld with finality yesterday the validity of the government’s P390-billion waste disposal project with Jancom Environmental Corp., but emphasized it is still up to President Arroyo to implement the contract.

The high court’s third division ruled that the garbage disposal project between the Metropolitan Manila Development Authority (MMDA) and Jancom was "valid and perfected."

The ruling stemmed from the MMDA’s motion asking the third division to reconsider its earlier ruling upholding the contract and barring the MMDA from bidding out a separate sanitary landfill project.

"The power of determining whether or not the deal is disadvantageous to the government lies with the executive department, specifically the Office of the President.

"These considerations are primarily and exclusively a matter for the President to decide. As to the necessity, expediency, and wisdom of the contract, these are outside the realm of judicial adjudication," the third division said in a seven-page resolution.

The high court stressed that while it acknowledges that the garbage problem in the country is of prime importance, it can only delve on the validity of the contract and that implementation of such contracts would always be up to the government.

"While the Court recognizes that the garbage problem is a matter of grave public concern, it can only declare that the contract in question is a valid and perfected one between the parties, but the same is still ineffective or unimplementable unless it is approved by the President, the contract itself providing that such approval by the President is necessary for its effectivity," the SC stated.

In denying the MMDA’s motion for reconsideration, the tribunal said the MMDA has failed to raise new issues that would warrant a reversal of the ruling the third division issued on Jan. 30 since the issues they raised a "mere rehash of the issues and arguments raised in the original petition."

Jancom chairman Leonides Gonzales said the company was pleased at the court’s ruling and expressed willingness to adjust the terms of the contract to ease objections to it.

Jancom’s build-operate-transfer garbage disposal project has already been readjusted to an integrated sanitary landfill and materials recovery facilities (MRF).

The tipping fee has also been readjusted from $59 for the waste-to-energy plant to $32 for an integrated sanitary landfill and MRF.

The company will also put up more than $150 million to set up the sanitary landfill project.

The SC issued the ruling after Sen. Gregorio Honasan sought an investigation into the controversial deal, claiming the contract "violates landmark environmental laws that were enacted only recently, notably the Clean Air Act and the Ecological Solid Waste Management Act."

Honasan said the Senate should investigate claims the Jancom contract was anomalous and illegal because the bidding was allegedly rigged, the project was overpriced, the tipping fees excessive and that the two previous administrations rejected the contract precisely because it violated environmental laws.

But Jancom welcomed Honasan’s proposed investigation and stressed this would be an opportunity to clarify issues that the company said has been muddled by "black propaganda."

Lawyer Manuel Molina, Jancom spokesman and legal counsel, also deplored "vested interests" who are opposing the Jancom contract in a bid to get the contract from Jancom despite the rulings of the courts.