The city council of Puerto Princesa City passed Monday two resolutions ordering Areza-Cruz Realty Development Corporation to stop from enforcing its increased rental rates.
Areza-Cruz is the private company operating the two public markets of the city.
The resolution said that Areza-Cruz violated its contract with the city government by enforcing an “arcabala” or charges on vehicles using its terminals to deliver produce to the markets.
Councilor Gregorio Austria said that he will call the presence of concerned officials to the city council session.
“It seems that Areza-Cruz is charging fees to the jeepneys contrary to the conditions set by the contract we approved,” Austria said adding that this was the company’s statement during the public hearing last February 19, 2013.
Tom Arupo, operations manager, said that he will refer the matter to the management.
Arnel Pedrosa, acting city legal officer said “there is clear violation of the contract.”
Pedrosa also said that under the contract “there should be improvements in the markets if there will be an increase in the rental rates every two years.”
But Arupo claimed that the building permits are still pending at City Hall that is why the improvements are delayed.