A huge win for the consumer and the vendor.
That was how some sectors see the recent ordinance passed by the city government of San Pedro, Laguna, declaring the expiration of the build-operate-transfer (BOT) agreement entered for the construction and maintenance of its public market in Barangay Poblacion.
For vendors - particularly some who allegedly suffered from high rental costs and intimidation from the private corporation that has continued to operate the public market - the ordinance marks a victory in their fight for fair treatment.
Consumers who are now feeling the burden of high inflation rates, on the other hand, have expected prices of basic goods and commodities to ease somewhat.
City ordinance
Last October 5, the Sangguniang Panglungsod of San Pedro approved City Ordinance No. 2026-30, declaring as “concluded and expired” by October 31 the BOT agreement it entered with Ithiel Corporation on June 26, 2000.
The BOT concerned the construction and maintenance of the San Pedro Public Market (popularly known as Suki Market San Pedro), on a piece of land owned by the local government unit in Barangay Poblacion.
“It is hereby confirmed that the Build-Operate-Transfer (BOT) Agreement dated June 7, 2000 between the City Government of San Pedro, Laguna and Ithiel Corporation shall formally mark its end, conclusion and expiration on October 31, 2026,” read the ordinance which was filed by Councilor Iryne Vierneza.
Ithiel is ordered to turn over to the city government by that date “all rights, titles, interests, market buildings, structures, equipment, utility systems and improvements comprising the San Pedro Public Market facility, free from any liens, encumbrances or payment of compensation.”
Long battle
For some vendors inside the San Pedro Public Market, the ordinance represents a victory in the long battle for their rights as tenants inside the market.
As far back as 2022, OpinYon Laguna has reported that the plight of members of the Suki Wet and Dry Market Vendors and Stallholders Association, who have repeatedly petitioned the city government to act on the private operator’s alleged refusal to honor local legislation and court decisions that prevented it from“unjustly” raising the rent levied on the stallholders.
The issue stemmed from a petition filed by the Suki Market stallholders before the San Pedro City Regional Trial Court (RTC), in which they asked the courts to implement Municipal Ordinance 2000-16 that required Ithiel Corporation to charge uniform rates on all stall holders.
Ithiel had defended its decision to raise the rent it levies on “newer” stallholders, claiming that the BOT agreement only protected the rights of existing stallholders (described as “legitimate”) whose names were included in a master list that was provided by the city government and represented the “original” stallholders of the old market building which was replaced by Suki Market.
To clear that inconsistency, the municipal government issued Resolution 2007-53 and Municipal Ordinance 2008-01, which directed Ithiel to apply the original daily rental rates to all lessees inside Suki Market.
Ithiel, however, allegedly refused to abide by the municipal ordinance, prompting the stallholders to file a petition before the court.
In 2014, the San Pedro RTC Branch 93 ruled in favor of Salvador and the other stallholders and ordered the company to pay P250,000 in “temperate damages” to the municipal government and the vendor’s association.
The case went all the way to the Court of Appeals, and later to the Supreme Court’s 1st Division, where in 2019 and 2022 respectively, the two higher courts ruled in favor of the market vendors.
Future developments
As of press time, Ithiel Corporation has yet to issue a public statement regarding the ordinance or whether they will abide by the LGU’s decision to declare its BOT agreement as “concluded and expired.”
However, social media posts by the Sangguniang Panglungsod have indicated that the local government is now preparing for the gradual turnover of the San Pedro Public Market to LGU control.
Last October 26, a public hearing was held between the Sangguniang Panglungsod and various stakeholders on a draft ordinance concerning the future management of the market.
The next question in the minds of San Pedrenses: will the LGU’s potential takeover of the San Pedro City Market result in fairer business practices, lower prices, and a better marketing experience for residents of Laguna’s Dormitory City?
(OpinYon News Team)