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CPA settles dispute with Rota firm; inks five-year agreement
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Posted on Mar 26 2009
The Commonwealth Ports Authority settled its dispute with Rota Terminal and Transfer Co. Inc. for the company’s nearly $500,000 arrears to the agency and entered into a new agreement that allows the firm to pay its debt in five years.
CPA executive director Efrain F. Camacho also disclosed the cancellation of the eviction order issued to the Rota company in February and March.
Camacho said the company, partly-owned by Rep. Victor Hocog, asked for consideration following the eviction notice that was supposed to take effect March 13.
“We were able to settle the issue and reached an agreement with the company. CPA is now allowing the firm to continue to operate its stevedoring operation on Rota, provided they pay all arrears and balances in five years’ time…and they agreed,” he said.
Besides the promissory note, Camacho said RT&T also promised to keep paying its monthly lease, which will give CPA a combined payment of about $3,000 from the company.
CPA earlier terminated the firm’s lease agreement and ordered it to vacate the property by March 13 after it failed to settle over $400,702 arrears as of November 2008.
RT&T signed the lease agreement with CPA in January 1996.
Camacho said among the considerations for the decision is the risk of losing the only stevedoring company on Rota.
“We’re not sure if there is any other party that would be able to step in, especially on a very short notice. We’re convinced that CPA’s decision is for the welfare of all parties,” the executive director said.
Camacho disclosed that during a meeting with the company’s officials, the “significant” drop in cargo volume was discussed. “We looked at all these considerations,” he said.
Camacho said CPA would make sure that the new agreement is not “ignored” by the party, as what has been noted in the past when RT&T did not make any payment to the agency.
CPA, in its attempt to generate revenues and collection this fiscal year, is running after delinquent tenants and concessionaires who have been in “default” for many years.
