Request for Guidance on the Validity and Effect of Executive Order No. 39, Series of 2025, Suspending the Collection of Septage Management Fees under Tripartite Memorandum of Agreement (MOA)

= e BAGONG PILIPINAS Republic of the Philippines DEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMENT DILG-NAPOLCOM Center, EDSA cor. Quezon Avenue, West Triangle, Quezon City www.dilg.gov.p! DILG OPINION NO. 3% SS. “ple ‘JUN 1.6 2026 EPITACIO C. SOLIMAN, JR., President and CEO, Soliman E.C. Septic Tank Disposal Unit 2 Epi-Deans Building, Brgy. Sindalan, City of San Fernando, Province of Pampanga asnaguit.solimance@gmail.com SUBJECT: Request for Guidance on the Validity and Effect of Executive Order No. (EO) 39, series of 2025, Suspending the Collection of Septage Management Fees under Tripartite Memorandum of Agreement (MOA) Dear Mr. Soliman, Jr.: This has reference to your letter concerning the Executive Order No. (EO) 39, series of 2025, entitled “An Order Temporarily Suspending the Collection of Septage Management Fees in the Municipality of Paombong, Bulacan and Directing Comprehensive Review of the Tripartite Agreement for Septage Management enacted by the Municipality of Paombong. The facts, as culled from your letter, discloses that the Sangguniang Bayan of Paombong passed Resolution No. 2023-10-155 authorizing the local chief executive to enter into a Tripartite MOA with Soliman E.C. and Hiyas Water Resources, Inc. (HWRI). One of the obligations imposed therein is the collection of septage fees by HWRI from water-consumers as a cost-recovery mechanisms. Allegedly, Section 11 of the MOA provides that any dispute shall be resolved exclusively by the proper courts of San Fernando, Pampanga or Paombong, Bulacan. Subsequently, following the 2025 local elections, the new Sangguniang Bayan adopted Resolution No. 2025-07- 11 requesting the Mayor to temporarily suspend the collection of septage fees by Soliman E.C. through HWRI’s billing system. Acting upon such Resolution, the Municipal Mayor issued EO 39, series of 2025. Moreover, Section 2 of the EO states that the suspension shall remain effective pending the outcome of the review and/or until lifted, without specifying a definite period or invoking the MOA’s agreed dispute resolution. Hence, you seek this Department's guidance on the following: 1. “Whether the Mayor has the power to unilaterally rescind, nullify or terminate an existing contract despite a valid Sangguniang Resolution authorizing him to enter the same; 2. Whether or not the private sector or service provider for the septage management program can sue the local government unit for breach of “Matino, Mahusay at Maaasahan” Trunkline No. (02) 8876 3454