FORMER Local Water Utilities Administration (LWUA) chairman and Rep. Prospero Pichay questioned the legality of LWUA’s reported resolution that surfaced on social media to take over the Cagayan de Oro Water District (COWD) over a Radio Lampornas interview Wednesday.
If any, according to Pichay, the actions of LWUA are not covered under Presidential Decree 198 (PD 198).
“Walay rason na mag-takeover ang LWUA sa Cagayan de Oro Water District as taking over is not in Presidential Decree 198,” Pichay stated.
He emphasized that PD 198 only allows LWUA to assume control of a water district under specific conditions such as severe financial difficulties, mismanagement, or operational issues that threaten the district’s ability to provide adequate water services to its customers.
Pichay further explained that PD 198 was designed to empower LWUA to step in only when a water district is poorly managed or financially distressed.
“It is meant to ensure effective management and sustainability of water services,” he added.
In cases where contractual disputes arise between a water district and a bulk water supplier, Pichay clarified that LWUA’s role is generally limited to providing guidance or assistance rather than taking over.
Disputes like the one between COWD and its bulk water supplier, COBI, are typically resolved through legal and contractual means, such as arbitration or court proceedings.
“LWUA’s role in such cases is usually limited to providing guidance or assistance to the parties involved in resolving the dispute,” Pichay reiterated, noting that intervention in contractual disputes does not fall under LWUA’s mandate as per PD 198.
Pichay pointed out that LWUA’s primary functions include providing financial assistance, technical support, and monitoring the operations of local water districts to ensure compliance with laws and regulations.
“Promoting the efficiency and effectiveness of water service delivery in local communities is also a key role of LWUA,” he added.
The controversy arose following President Ferdinand Marcos Jr.’s directive for LWUA to look into the ongoing dispute between COWD and COBI and to find a solution.
President Marcos had indicated that negotiations with Manuel Pangilinan’s CDO Bulk Water (COBI) should be pursued for a temporary solution while seeking a long-term resolution.
“Inatasan ko ang LWUA na pag-aralan ang posibleng pamamahala sa COWD,” Marcos stated, emphasizing the need to ensure a continuous water supply for over 60,000 residents of Cagayan de Oro City.
Under PD 198, which was enacted by President Marcos Sr., LWUA was created to provide technical assistance and specialized financial services to local water utilities.
Pichay maintained that LWUA should focus on supporting and improving the efficiency and effectiveness of local water districts rather than taking over their operations.
Meanwhile, the Board of Directors (BOD) of COWD held an emergency meeting on Saturday in response to LWUA’s announcement of a full takeover.
During this meeting, the BOD passed several resolutions rejecting LWUA’s intervention and outlining their next steps, including a resolution requesting 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.
Additionally, the BOD approved a resolution to file legal action to rescind the contract between COWD and Metropac to protect the water district’s interests.
They also decided to file a motion to Branch 17 to divide the bond among the petitioners, addressing financial concerns related to the dispute.
COWD is taking proactive steps to communicate its position and seek support from higher authorities.
They approved a resolution to write to the Office of the President and the OGCC, detailing their stance on the legality of the LWUA takeover under Resolution No. 34.
Furthermore, the BOD directed the General Manager, BOD Chair, and Legal Counsel to be present if LWUA representatives attempt to assert their presence at COWD, emphasizing that they do not recognize LWUA’s authority in this matter.
In a detailed letter addressed to Mayor Rolando “Klarex” Uy, COWD outlined its achievements in reducing non-revenue water (NRW) and optimizing its water supply systems, demonstrating its capability to manage its operations effectively.
COWD General Manager Antonio B. Young emphasized that the water district has consistently settled its obligations to LWUA and other suppliers, refuting claims of financial mismanagement.
City Mayor Rolando “Klarex” Uy earlier expressed respect for President Marcos’ directive to stabilize the city’s water supply but emphasized that the city government would only step in if the continuous water supply is threatened.
Uy stated that the recent COWD and LWUA should resolve the issue independently and reiterated his respect for the President’s wisdom in tasking LWUA with exploring management solutions for COWD for the city’s benefit.
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