Republic of the Philippines

DEPARTMENT OF PUBLIC WORKS AND HIGHWAYS

Office of the Regional Director
Region II- Cagayan Valley Region
Tuguegarao City

2
nd
Indorsement

Returned to the OIC-District Engineer, Isabela 3rd District Engineering Office, Cauayan
City, Isabela, The within set of papers treating on the letter of Honorable Ian Paul L. Dy,
Municipal Mayor of Alicia, Isabela, stating his position in reference to the termination of the
Memorandum of Agreement executed between this Office and the Local Government of Alicia
and the reversion of 50% seed money released to the said LGU for the Rehabilitation of Alicia
Public Market located at Barangay Antonino, Alicia, Isabela funded under the PDAF of Sen.
Teofisto TG Guingona III in the amount of P2,500,000.00.

This Office reiterates its position for the termination of the Memorandum of Agreement
entered into by the District Engineering Office and the Local Government Unit of Alicia.

Basic is the rule in the law on Obligation and Contracts particularly the principle of
autonomy of contracts that parties can stipulate whatever provisions, terms and conditions that
they like for as long as it is not contrary to Law, Customs, Public Order, Good Morals and Public
Policy. These stipulations agreed upon by the parties shall have the force and effect of law and
would regulate the performance of each party of their respective obligations under the contract.

While the MOA entered into is bilateral in nature, this does not mean that its rescission or
revocation should likewise be with the consent of both parties. To reiterate, the DPWH being
one of the contracting party is only exercising its rights as provided in the MOA.

It was agreed upon by the parties under Article IV Section 4.2 that either party to this
MOA may initiate the termination of this MOA in the event of default by the other party of
its obligation there under. There is no question that the LGU of Alicia represented by the
previous Administration clearly violated the main condition of the MOA that the project should
be implemented by ADMINISTRATION only and not by CONTRACT.

It was alleged that it is not the LGU who violated the MOA but rather the former Mayor
Cecilia Claire N. Reyes because she acted beyond the scope of her authority. Such allegation
does not have any legal basis and is bereft of merit considering the fact that the former Mayor
was duly authorized through Resolution No. 2013-042 to represent the LGU of Alicia in entering
into a MOA with the District Office. Acts of the previous Mayor in connection to the MOA
therefore binds the LGU as the same is in connection to her official duties.

WHEREFORE, in view of the foregoing, the termination of the MOA is in order and that
the 50% seed money released to the LGU of Alicia in connection with the MOA be reverted
back to the Government.


MELVIN B. NAVARRO, MNSA, CESO IV
Regional Director