Manila Mayor Isko Moreno has confirmed that the city is now facing ₱950 million in unpaid obligations to its garbage contractors—Philippine Ecology Systems Corporation (PhilEco) and MetroWaste Solid Waste Management Corporation.
In a press conference held at City Hall on June 30, Moreno presented official letters from both companies stating that they were formally pulling out of their contracts due to unpaid balances incurred during the administration of former Mayor Honey Lacuna.
Past service provider Leonel Waste Management Corporation also pulled out in December 2024 after the city reportedly failed to settle ₱561 million in dues. Moreno emphasized that this was not speculation but a matter of fact:
“The truth has come out — they were never paid,” Domagoso said.
Leonel, which had served the city for over 25 years, informed Lacuna’s office as early as September 2024 that it would no longer participate in the 2025 bidding cycle. The company stated it fulfilled its responsibilities until the end of its contract and provided documentation to help manage the holiday waste surge.
Despite receiving formal notice months in advance, the Lacuna administration brought in PhilEco and MetroWaste as replacements without settling outstanding obligations. Both new contractors have since halted operations under Moreno’s term, formally citing the city’s failure to pay as the reason for their withdrawal.
Five months ago, Peanut Gallery Media Network anchor CJ Hirro reported on the developing issue in Episode 25, citing official records and Leonel’s letter to the Lacuna administration. In her segment, Hirro raised concerns about the growing debt and questioned the decisions being made at City Hall regarding waste management.
“May utang ka na nga, ang kinuha mo pang kapalit, sinuka na ng ibang lungsod. Let that sink in,” Hirro said, referencing the city’s decision to tap contractors with questionable histories despite already owing hundreds of millions to the previous provider.
Her report highlighted the early warning signs that were ignored, calling out the lack of urgency and accountability that ultimately led to the breakdown in waste collection services across the capital.
In response to the ongoing crisis, Mayor Isko Moreno has declared a state of public health emergency in Manila.
He has mobilized city agencies and barangay officials to conduct emergency cleanup operations and personally appealed to Leonel Waste Management to assist in clearing the backlogged garbage—despite the company no longer holding an active contract.
Watch PGMN Anchor CJ Hirro’s full report from five months ago:
