THE reported takeover of the Cagayan de Oro Water District (COWD) by the Local Water Utilities Administration (LWUA) has sparked controversy and prompted an investigation.
This follows a press release that surfaced on social media, allegedly dated May 17, 2024, and purportedly endorsed by President Ferdinand “Bongbong” Marcos Jr.
Since the initial report on May 17, there has been no official communication confirming the takeover.
This has even raised doubts among COWD officials about the legitimacy of the LWUA resolution.
Gerry Caño, a member of the COWD Board of Directors, voiced his concerns, asking, “Was there really an LWUA resolution that came out?”
The press statement in question detailed a full takeover of COWD by LWUA, citing an order from President Marcos and a thorough assessment of COWD’s documents.
The takeover was supposedly approved during LWUA’s 1009th Board Meeting on May 17, 2024.
The statement outlined several measures LWUA would implement during the takeover, including appointing interim board members and a general manager, determining solutions for water supply issues, operating COWD’s facilities efficiently, addressing financial irregularities, and ensuring compliance with legal and administrative practices.
Despite these detailed plans, former LWUA chairman and Rep. Prospero Pichay has questioned the legality of the resolution over Radio Lampornas interview Wednesday morning.
Pichay argued that the actions described do not fall under the provisions of Presidential Decree 198 (PD 198).
“There is no reason for LWUA to take over COWD as this action is not supported by PD 198,” Pichay stated.
He emphasized that PD 198 only permits LWUA to assume control of a water district under specific conditions, such as severe financial distress or mismanagement that threatens the district’s ability to provide adequate water services.
Pichay further clarified that PD 198 was intended to empower LWUA to step in only when necessary to ensure effective management and sustainability of water services.
He noted that LWUA’s role in contractual disputes, like the ongoing one between COWD and its bulk water supplier COBI, is generally limited to guidance or assistance rather than direct intervention.
The controversy began after President Marcos directed LWUA to investigate the dispute between COWD and Cagayan de Oro Bulk Inc. (COBI) and to find a solution, during his visit in Cagayan de Oro City on May 16, 2024.
The President suggested that negotiations with COBI should continue as a temporary measure while seeking a long-term resolution.
President Marcos emphasized the importance of ensuring a continuous water supply for Cagayan de Oro City’s residents.
“I have tasked LWUA to study the possible management of COWD,” he said, highlighting the need for stability in the city’s water supply.
COWD’s Board of Directors responded by holding an emergency meeting and passing several resolutions rejecting LWUA’s intervention.
They requested the Office of the Government Corporate Counsel (OGCC) to authorize COWD’s legal counsel to represent the water district in legal actions aimed at rescinding the contract with Metropac, a subsidiary of COBI.
COWD also decided to file a motion to divide the bond among petitioners, addressing financial concerns related to the dispute.
Additionally, they planned to write to the Office of the President and the OGCC, outlining their legal stance on the LWUA takeover.
COWD’s General Manager Antonio B. Young highlighted the water district’s achievements in reducing non-revenue water (NRW) and optimizing its systems, asserting that COWD is capable of managing its operations effectively.
Young refuted claims of financial mismanagement, stating that COWD has consistently settled its obligations.
City Mayor Rolando “Klarex” Uy expressed his respect for President Marcos’ directive but emphasized that the city government would only intervene if the water supply is threatened.
Uy encouraged COWD and LWUA to resolve the issue independently, respecting the President’s judgment in tasking LWUA with exploring management solutions for the benefit of the city.
As the investigation continues, the residents of Cagayan de Oro await clarity on the situation.
Both LWUA and COWD must navigate the legal and administrative challenges to ensure that the city’s water supply remains stable and efficient.
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