CAGAYAN de Oro Mayor Rolando ‘Klarex’ Uy officially administered the swearing-in of interim officers at the Cagayan de Oro Water District (COWD) on Thursday, in response to a directive from the Local Water Utilities Administration (LWUA).
Fermin Jarales assumed the role of Interim General Manager, while Engineer Antonio Ramirez was named Interim Board Chairman.
Additionally, three interim board members—Amelia Delarosa, lawyers Donn Kapunan and Noel Bacal,, also took their oaths.
The new appointments are part of a 'full intervention' by LWUA, aimed at addressing the ongoing water issues in the city.
This move was formalized through a resolution issued by LWUA to support the improvement of water services in Cagayan de Oro.
Shortly after his appointment, Jarales issued his first memorandum to all COWD employees.
Dated May 30, the memorandum outlined the full intervention plan by LWUA, as per Board Resolution No. 34, series of 2024.
This resolution, approved on May 17, 2024, mandates the appointment of an Interim Board of Directors (IBOD) and an Interim General Manager due to COWD's failure to meet its obligations under a Financial Assistance Contract with LWUA.
Earlier, the COWD cited part of the OGCC opinion that “procedures and remedies provided under the loan agreement must be exhausted before any takeover or intervention is resorted to.”
Young said the COWD has an existing loan with LWUA, with an outstanding balance of P11 million.
He pointed out that the COWD is not in default since it has been paying LWUA P180,000 a month on time. He also said the COWD has made an overpayment of P600,000 for the loan with LWUA.
Young said the COWD has been paying COBI regularly based on the pre-pandemic water rates, which are not under dispute.
“Wala man mi default sa payment even sa supplier kay gabayad mi sa supplier (We don’t default on payments, even to suppliers because we pay our suppliers),” Young said.
Young and COWD Board of Director Gerry Caño maintained that the COWD did not commit any violations as they questioned the letter for LWUA's full intervention.
In addition to Jarales' memorandum, the document further detailed the cessation of powers of the regular Board of Directors and the existing General Manager for six months, effective May 29, 2024.
It instructed all COWD employees to report directly to the new interim leadership and to avoid any interaction with the suspended officers.
Also on Wednesday, Mayor Uy welcomed LWUA’s decision and expressed hope that it would help mediate the ongoing contractual disputes between COWD and the Cagayan de Oro Bulk Water Inc. (COBI).
During a meeting with LWUA officials, Uy addressed concerns over the 2017 contract between COWD and COBI, which mandates an automatic increase in bulk water rates every three years.
Mayor Uy urged LWUA and COBI to avoid further water cut-offs and to work together in resolving the water crisis, aligning with President Marcos' call for unity.
He stressed the city's commitment to ensuring fair water rates and access to sufficient, clean, and safe water for all residents.
In an evening press conference called by COWD, Engineer Young, the current COWD General Manager, revealed that the water district has sought legal advice from the Office of the Government Corporate Counsel (OGCC) regarding LWUA's takeover decision.
The request for a legal opinion was made on May 18, shortly after LWUA's resolution was passed.
Young and Caño questioned the basis of LWUA's full intervention, asserting that no violations had been committed by COWD, and they are awaiting the OGCC’s feedback before taking any further action.
As the new interim team begins their tenure, they face the challenge of stabilizing and improving water services in Cagayan de Oro.
The local government and LWUA hope that these changes will lead to more reliable water supplies and better service for the city's residents.
