COA: Don’t waive fines for vehicles towed away

Cebu Daily News
8:41 am | Monday, July 18th, 2011


MANDAUE City officials were advised by the Commission on Audit (COA) to refrain from accomodating requests to waive the penalties, sanctions and charges imposed by towing company Jadewell Parking System Corp. on motorists.

State auditors told the city government to “strictly enforce the city ordinance on the use and operation of parking spaces.”

At the same time, the company should present its terms of reference based on the memorandum of agreement signed on Oct. 15, 2003 by former mayor Thadeo Ouano and Jadewell president Rogelio Tan, to ensure the delivery of income to the local government.

Under the agreement, the local is entitled to a 10-percent share of Jadewell’s total collections to be remitted to the City Treasurer’s Office.

“The verification conducted by the audit team revealed that there were many requests to release impounded/towed vehicles of several VIP’s (very important person’s) of Mandaue City thereby waiving all the penalties, sanctions and charges,” the COA report said.

“There were also requests where there were no notations but the penalties were still waived.”

Based on documents submitted by the company which do not include the months of May, June and July 2010, requests granted by Jadewell incurred for the city a loss of P40,953.

“The actual collections could not be validated since the official receipts got wet and the ones submitted, representing a month’s transaction, could not be separated,” the auditors added.

Towing and impounding of vehicles is governed by City Odinance 09-2003-220.

COA also recommended that Jadewell inventory all towed or impounded vehicles especially those impounded beyond six months that need to be sold in a public auction.
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Local government was not delivered with vehicles impounded for more than six months.

The auditors discovered that there were plenty impounded vehicles in the impounding area.

Most of these were kept beyond six months and not sold.

The vehicles were not placed in a covered area which made these susceptible tothe elements.

source