De los Reyes orders towing company to stop operations, explain high rates

Talisay City Mayor Johnny de los Reyes has ordered the A-Plus Towing Company to stop its operation in the city pending the result of an investigation into alleged excessive rates imposed by the company to traffic violators.

The mayor said the Talisay-Traffic Operation Development Authority (CT-TODA), which oversees the the operation of A-Plus Towing Company, will need to make the company explain how it came up with the towing rates.

De los Reyes based his action on a report from City Treasurer Emma Macuto who earlier said several motorists have complained to the city over the excessive fines imposed by the company, or at P2,200 (light vehicle) and P3,200 (trucks, SUVs and vans) for parking violators.

The mayor said he, too, found the rates too high.

On Dec. 11, 2015, De los Reyes entered into a contract with A-Plus Towing Company in behalf of the Talisay City government. Under the contract, the company will take charge of removing vehicles that are illegally parked in the major thoroughfares of the city including the Cebu South Coastal Road leading to the South Road Properties in Cebu City.

The Talisay City Council however questioned why the mayor entered into a memorandum of agreement (MOA) with A-Plus without the approval of the city council.

But De los Reyes said Councilor Valeriano Ylanan, chairman of the CT-TODA council, has assured him that that MOA was valid as it was backed by City Ordinance 2012-09 or the City’s Traffic Code, which also established the city’s traffic authority.

Under Section 133 of the ordinance, the mayor can enter into an agreement on behalf of the city government with any towing company subject to existing laws and regulations. But the Department of Interior and Local Government in Central Visayas (DILG-7) has an opposing position.

Lawyer Aisha Fiel Nogra, chief of the legal division of DILG-7, maintained that the Local Government Code is clear that the mayor must first secure an authority from the city council if it involves entering into business transactions or signing contracts, bonds, and obligations in behalf of the city government.

The contract with the towing company, Nogra added, becomes “unenforceable” since he failed to secure an authority from the city council.

City Councilor Aldin Diaz meanwhile said he will file a resolution to summon a representative of the towing company before the city council to enlighten the councilors how it came up with its rates and to explain the sharing scheme between the city government and the company.

Based on a report provided by the towing company to CT-TODA, the towing firm was able to collect P54,100 from January 13 to February 1 this year. But only P5,810 was turned over to the City Hall as part of its 10 percent share.