THE Regional Trial Court has issued a cease and desist order against the Local Water Utilities Administration (LWUA), marking a significant victory for the residents of Cagayan de Oro City and their advocate, Mayor Rolando ‘Klarex’ Uy.
The court’s decision comes in response to LWUA’s controversial takeover attempt of the Cagayan de Oro City Water District (COWD), which had raised concerns over unjust water rate increases and poor service delivery.
Uy, a vocal opponent of the water rate hikes, expressed relief and gratitude for the ruling, calling it a validation of the collective efforts of Cagayan de Oro's water consumers.
“This decision is not just a legal victory; it is a moral one for our people who have long suffered under unfair policies favoring big businesses in the water sector,” he stated.
The mayor’s commitment to protecting citizens’ interests has resonated deeply, especially given rising water costs during a time of economic uncertainty.
The controversy began when the COWD entered into a bulkwater supply agreement with Cagayan de Oro Bulkwater Inc. (Cobi) in 2017.
This contract, which included provisions for automatic price escalations, was criticized for its lack of transparency and fairness.
Despite calls from the City Council, then led by Vice Mayor Rainier Joaquin ‘Kapkik’ Uy, the previous administration under Mayor Oscar S. Moreno refused to disclose the contract’s details, leading to public outcry and demands for reform.
A thorough review conducted by Mayor Uy revealed several onerous provisions within the COWD-Cobi agreement, prompting calls for its reformation or outright termination.
The mayor highlighted that the contract’s implications had resulted in an alarming P489 million in alleged debts, primarily incurred during the pandemic, which Cobi sought to collect through aggressive measures, including the temporary suspension of water supply to residents.
As the community rallied against LWUA’s intervention, over 17,000 water consumers signed a petition urging the court to halt the takeover.
This grassroots effort was bolstered by the support of local leaders, including voices from the Kauban Ta Uy movement, who criticized former officials like Rep. Lordan Suan for aligning with corporate interests at the expense of the public.
“The people should remember how their representatives chose to prioritize profits over the welfare of their constituents,” remarked BenCyrus Ellorin.
The court’s decision, articulated in a comprehensive 36-page ruling by RTC Branch 41 Judge Jeoffre Acebido, prohibits LWUA and its affiliates from interfering with COWD's operations.
The ruling empowers the Board of Directors appointed by Mayor Uy to resume their duties in managing the water district, particularly in addressing the contentious Cobi contract and evaluating the validity of the alleged debts.
This decision not only restores local governance to the COWD but also sets the stage for a renewed focus on critical issues such as water wastage and non-revenue water management, which have plagued the operations of the city’s water supply system.
The legitimate Board of Directors is now tasked with finding solutions to these pressing challenges while ensuring accountability and transparency in their dealings.
Uy emphasized the importance of collaboration among stakeholders to improve water services for Cagayan de Oro residents.
“This victory is just the beginning. We must work together to ensure our water district operates effectively and equitably for all,” he said, signaling a commitment to the ongoing fight for consumer rights and better public services.
