Honasan said the contract grossly violates landmark environmental laws that were enacted only recently, notably the Clean Air Act and the Ecological Solid Waste Management Act.
He described as "unacceptable" the P600 fee Metro Manila households would supposedly pay for garbage collection since this is even higher than what households pay for their water consumption.
"The contract itself stinks like garbage and the people will not only have a bleeding pocket but be exposed to health hazards as well," Honasan said.
He said the Senate should investigate claims the Jancom contract was anomalous and illegal because the bidding was allegedly rigged, the project was overpriced, the tipping fees excessive and that the two previous administrations rejected the contract precisely because it violated environmental laws.
Jancom, on the other hand, welcomed Honasan’s proposed investigation and stressed this would be an opportunity to clarify issues that the company said has been muddled by "black propaganda."
"We welcome Senator Honasan’s proposal to conduct an investigation. When you are maligned without being given a chance to defend yourself, a formal investigation is most welcome," said lawyer Manuel Molina, Jancom spokesman and legal counsel.
Molina deplored "vested interests" who are opposing the Jancom contract and said they are only interested in getting the contract despite the rulings of the courts.
"We have gotten beatings. They should debate fair and square," Molina said, stressing that the courts have repeatedly sustained Jancom in several legal suits.
The most recent was a Supreme Court decision upholding the contract and barring the government from bidding out a separate sanitary landfill project.
Honasan said the SC ruling was a dangerous precedent and that the decision was an encroachment on the legislative powers of Congress.
Bukidnon Rep. Nereus Acosta agreed with Honasan and said the ruling "seems to put the cart before the horse" and the ruling was an example of judicial legislation.
Acosta pointed out the case should have been re-raffled because Justice Antonio Carpio had once served as counsel for Jancom and its project partner Vivendi Environnement.
"Why was it not raffled to other divisions. We’re not accusing the entire SC but this is a very serious problem," Acosta said.
Non-government organizations have also opposed the Jancom-Vivendi project and urged President Arroyo to junk the project.
"Once and for all, the President should declare this contract (on waste management) not just unsignable, not just for review, but aborted," said the group of NGOs, headed by former Philippine Stock Exchange president Jose Luis Yulo Jr.
Yulo’s group includes Liwayway Vinzons-Chato, Ester Perez de Tagle, Gideon Javier, Steve Legasto, Ana Ugarte, Dr. Metodio Palaypay, Fr. Benigno Beltran, Bert Guevarra and Lou Valencia.
"What we are more worried about is the jurisprudence. This has far reaching implications. This will really destroy our jurisprudence on contracts," said Chato, counsel for Koalisyon Linis Basura.
"This is just like the Bataan Nuclear Power Plant during the time of Marcos. The Westinghouse deal. The people repudiated that contract but we’re still paying it up to now," said Tagle, who has been opposing Jancom for eight years.
In opposing the Jancom-Vivendi contract, the NGOs also claim that anomalies and irregularities attended the contract bidding and insinuated that there was corruption in the transaction.
But Molina said the NGOs are only opposing Jancom in support of its rival Pro-Environment Consortium and have even spoken with him so that they would be awarded to dispose of some of Metro Manila’s 8,000 tons of daily garbage.
"They are just after the contract. They’ve been talking to me. We have no objections to anyone else disposing of some of the garbage so long as we have our 3,000 tons per day," Molina said.
"Attorney Chato is insinuating that there is corruption. Huwag naman ganoon. Hindi naman BIR ito (Don’t be like that. This is not the Bureau of Internal Revenue,)" Molina said. Chato was BIR commissioner during the Ramos administration.