CONCERNS have arisen in Cagayan de Oro City regarding the water service, stemming from a dispute between the local water company, Cagayan de Oro Water District (COWD), and another entity, Metro Pacific. The conflict revolves around their joint venture, Cagayan de Oro Bulk Water Incorporated (COBI), and has significant implications for the city’s water supply.
Late last week, Mayor Rolando “Klarex” Uy formed a special task group to investigate the contract between COWD and COBI. He initiated this through Executive Order No. 109 – 2024.
City council member James Judith and Radio Lampornas station manager Dr. Ronnie Waniwan are leading this fact-finding investigation as chairman and vice-chair, respectively.
Their goal is to ensure that the investigation is transparent and that the public understands the water contract’s details.
During the investigation, one of the invited resource speakers, Engr. Rachel Beja, former head of COWD, stated that the contract with COBI is detrimental to the citizens, labeling it “onerous.”
She also speculated that her dismissal in 2017 was due to her questioning a deal with Metro Pacific, the main company behind COBI.
Beja highlighted that there might have been issues in the said year with the government’s audit office not approving the new water rates from Rio Verde, the former water supplier.
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“If this is the case, it could spell big trouble for the COWD management,” Beja remarked.
In a previous report to the City Council, it was revealed that the deal COWD had with Rio Verde set the water price at P10.45 per cubic meter. Since 2005, there have been no price changes, according to Rio Verde’s representative, Engr. Jeoffrey Hapitan.
COWD and Rio Verde have terminated their contract, but the government’s legal team is still reviewing the termination’s circumstances.
Additionally, during the investigation, Judith and Waniwan questioned Beja about a photograph from 2017.
The photo depicted Beja with former Mayor Oscar Moreno, prominent businessman Manuel V. Pangilinan, and COWD board chair Ed Montalvan, seemingly during the signing of the COBI contract.
Beja clarified that her presence in the picture was unintentional, occurring unexpectedly after another meeting.
Meanwhile, earlier on Magnum Radio, former vice mayor Ranier Joaquin Uy shared that he and some councilors were also surprised when they were picked up at the airport after arriving from Cagayan de Oro for an educational summit at the World Hotel in Manila.
“We still had our bags, but we went directly to the Shangri-La Hotel, where we unexpectedly saw the former mayor (Moreno) with COWD officials (Engineer Rachel Beja and Cowd board chair Ed Montalvan) and businessman Manny Pangilinan, at that time,” said Uy, who is now the barangay Carmen chairman.
“There were many people inside, and it seemed like the event was already finished because they were already taking pictures,” said Uy.
The former vice mayor noted that he didn’t realize that the event was connected to the Cobi contract.
“It was a surprise. I had just come from the LWUA office when they invited me over,” Beja explained when questioned by Waniwan.
In 2017, Pangilinan, who controls Metro Pacific, was acquiring water from Rio Verde to establish COBI.
As the investigation continues, COBI has warned COWD that they will cut off the water supply unless they receive payment of the alleged 426 million pesos owed by COWD.
Another invited speaker, former City Councilor Eric Salcedo, corroborated former COWD GM Beja’s statements.
“That’s why we filed a complaint before the Philippine Competition Commission (PCC) against COBI,” Salcedo stated.
Salcedo, along with the then councilor Reubin Daba and then-deceased councilor Teodulfo Lao , with their lawyer, now councilor James Judith, requested a copy of the contract to no avail.
Salcedo expressed his frustration with former Mayor Moreno for not assisting them in obtaining the COWD-Metro Pacific contract, despite their alliance and support for him.
During the investigation, Salcedo confirmed that the five-member COWD Board in 2017 included Moreno’s appointees: Chairman Ed Montalban, Hilly Ann Quiaoit, Mateo Delegencia, and Concepcion Quiblat, in contrast to only Soc Anthony Del Rosario.
“We didn’t understand why it seemed like he (Moreno) was angry with us; we later realized that the COBI contract we were questioning was the reason,” stated Salcedo.
Salcedo added that Moreno could have asked the COWD board to provide them with a copy of the contract, but he didn’t do so.
“He often insinuated things about us whenever there was a city event at that time,” said Salcedo, without going into further detail.
In 2016, when the Swiss challenge occurred, Moreno’s appointees already held the majority on the COWD board, with Montalvan, Quiblat, and Delegencia opposing Soc del Rosario and Joel Baldelovar.
Salcedo also mentioned that the city had allocated a P500 million interest-free loan to COWD for pipeline upgrades in 2021, which were not carried out due to delays that extended into the election period ban.
Councilor Salcedo remarked that although Moreno claimed he was not directly involved, his tenure as mayor seemed to influence the signing of the contract.
The special group continues its efforts to fully understand the contract and its implications for the city’s water supply.
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