Manila has P561 million in unpaid debts for garbage collection, waste firm says
MANILA, Philippines — The garbage contractor accused by the City of Manila of neglecting its duties has denied the allegations, asserting that the local government still owes P561 million in unpaid dues.
After the holiday celebrations, Manila residents took to social media to complain about piles of uncollected trash on the streets. Manila Mayor Honey Lacuna attributed the buildup to the contractor's failure to fulfill its duties."
In an interview with GMA’s "Unang Balita", Lacuna explained that the contractor’s contract expired on Dec. 31, 2024, and that the firm ceased garbage collection on Dec. 30, 2024.
The contractor in question, Leonel Waste Management, has denied the allegation.
“We have faithfully served our contract until December 31, 2024 despite the City of Manila’s total debt to our company amounting to PhP561,440,000. Our fulfillment of our obligations is well-documented with timestamped photos and Barangay Certifications signed by their representatives,” the firm said in a statement on Monday, January 6.
“We strongly refute this accusation, which grossly undermines the hard work and efforts of all our garbage collectors, who we thank deeply for their outstanding service,” it added.
The company said that on Dec. 23, 2024, it informed its employees that their service contract would end on the last day of the year.
“We mandated them to continue doing our usual services until the end of our contract, especially in anticipation of the usual surge of garbage brought about by the holiday season,” it said.
Leonel Waste Management has been the city’s waste collector since 1993.
The firm said that in September 2024, they met with Lacuna to inform her that the company would no longer participate in the 2025 bidding.
In response, Lacuna stated that the Manila government has awarded two garbage collection contracts worth a total of P842.7 million. One contract, valued at P429,786,061.68, was granted to Phil. Ecology Systems Corp., while the other, worth P412,931,706.32, went to MetroWaste Solid Waste Management Corp. The former will handle garbage collection for Districts 4 and 5, while the latter will cover Districts 1, 2, and 3.
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