“It’s really up to Tony as a manager whether to continue… or to break the contract…and have a settlement agreement. Tony has to make a decision,” Reyes said.
He added that the governor’s office is relying on Muna’s judgment. “That’s why we hired him to make this kind of decision and consult with us,” Reyes said.
Some legal issues need to be addressed should the contract be rendered void in order to prevent any further complications, the press secretary added.
In an interview yesterday, Muna said he is now “contemplating on terminating the contract.”
The governor has been advised about the possibility of canceling the contract, Muna added.
The governor, he said, “didn’t appear to have any objections.”
But the governor wants CUC to observe legal parameters once it decides to end the contract, Muna said.
“The governor expects that we… are in a position, legally, to effect termination,” the CUC chief added.
He expects DCM to protect its rights.
CUC may terminate its contract with DCM if the “contractor defaults in performance of any provisions… or fails to carry out contracting services.”
Muna said CUC will not invoke the penalty clause against DCM.
Variety tried but failed to get comments from DCM.
The three major stockholders of DCM are Jun Herradura, president, Sonny Perez, vice president/secretary, and Amor Pakingan, treasurer.
DCM is a Guam-based contractor that signed a $5.1 million contract with CUC on Dec. 12, 2007.
