THE Local Water Utilities Administration (LWUA) reaffirmed its legal authority over the Cagayan de Oro Water District (COWD) amid ongoing disputes, rejecting the former board’s appointment of Engr. Edna C. Najeal as acting general manager.
During its regular meeting on February 25, LWUA’s Board of Trustees unanimously approved a six-month extension of its intervention in COWD, from March 1 to August 30.
The decision aims to stabilize the district’s operations and resolve critical water supply and financial issues.
LWUA’s continued oversight comes as COWD struggles with a P470-million debt to Cagayan de Oro Bulk Water Inc. (COBI), which led to the company cutting off service and affecting over 40,000 households.
The Commission on Audit (COA) has flagged COWD for financial mismanagement, reporting a 50.02% non-revenue water (NRW) rate — well above the acceptable 20% limit — resulting in an estimated revenue loss of P765.3 million.
Additional audit findings include irregularities in board compensation, unverified payments, and unauthorized reimbursements.
COWD also reported a net loss of P32 million, further straining its finances.
To address these challenges, LWUA appointed an interim board with full authority over COWD’s operations.
“The agency dismissed Najeal’s appointment as invalid, asserting that all management decisions must come from its designated leadership,” LWUA statement reads.
LWUA urged all parties to respect its legal mandate, emphasizing its commitment to restoring stable water service and financial integrity within COWD.
