1 month ago
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ILOILO CITY — The Iloilo City government is gearing up for legal action against DoubleDragon Properties Corp. (DDPC) and Iloilo Guimaras Ferry Terminal Corp. (IGFTC), citing what it calls a highly disadvantageous joint venture agreement (JVA) for the operation of the Parola Wharf ferry terminal.
On April 25, the Iloilo City Council granted Mayor Jerry Treñas a blanket authority to represent the city in any legal proceedings, including a potential move to nullify the 2012 JVA signed under then-mayor Jed Patrick Mabilog.
The city's decision comes after alleged repeated refusals by DDPC and IGFTC to revisit the 2012 agreement.
Councilor Rex Sarabia said the City Council's Committee on Transportation, chaired by Councilor Sedfrey Cabaluna, initially sought to renegotiate the JVA but to no avail.
"There is no recourse for the city government other than to file the legal action," said Sarabia, who chairs the council's Committee on Personnel, Good Government, and Public Accountability and Oversight.
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Cabaluna added that while his committee hoped for an amicable resolution, they were met with a firm refusal from the private partners.
For Sarabia, the case should have been filed outright, describing the JVA as "patently illegal and unconscionable," with lopsided benefits favoring DDPC over the city government.
"[There is] patently unconscionable terms ... DDPC has a disproportionate profit in terms of services, value of the property involved, and the benefits. I was very staunch from the beginning that we don't need to approach the JVA — just file the action outright," he said.
In a letter that sought authorization, Treñas cited four key issues identified by the City Legal Office.
Treñas criticized the city's minimal share of 1-5 percent in revenues from terminal operations and commercial establishments and the firms' failure to submit annual financial and operational reports, hindering the city's oversight.
Treñas also pointed out that only DDPC was originally authorized by the City Council, raising questions about IGFTC's legal participation.
There is also a lack of proper land and property valuation, undermining the basis for a fair profit-sharing scheme, according to him.
