Deputy Ombudsman for Luzon Victor Fernandez approved the dismissal of the case, citing the lack of probable cause in the graft case filed by Ayesel Construction and Development Corp., Royalty Alabang Foods Inc. and Monarch Alabang Foods Inc. against the local officials.
On March 29, 2001, the city government entered into a contract of lease with Ayesel, and its partner firms for a property in Barangay Alabang. The contract gave the lessees the right to construct, manage and operate a jeepney terminal.
However, the city government cancelled the contract after the operators failed to pay the rent as stipulated in the contract. It demanded Ayesel and the two other companies to pay and vacate the premises.
A Muntinlupa metropolitan court ordered the companies to vacate the city terminal and to pay its dues, which now amount to some P6.4 million.
Ayesel and its partner-companies later sued the city government, saying it committed a "breach of contract" when it allegedly failed to provide them jeepneys from the old city terminal and that it likewise failed to stop illegal jeepney terminals in the Alabang area.
"Nowhere in the contract of lease entered into between the Muntinlupa City government and the three companies is it provided that the latter would have exclusive privilege or right to operate or maintain the terminal to the exclusion of others," the 27-page resolution read.
Fresnedi said prior to signing a contract with Ayesel, it was the city government which solely operated the terminal.
"We thought of getting private partners so we could use the proceeds from the terminal operations in our scholarship programs for financially hard-up students. A portion of this is also being used to maintain the city’s police trust fund. However, said companies failed us and even contributed greatly in the delay of some of our programs," he said.