OFFICIALS from the Local Water Utilities Administration (LWUA) met with Mayor Rolando "Klarex" Uy on Wednesday morning to discuss implementing the agency's resolution to take over the operations of the Cagayan de Oro Water District (COWD).
During the meeting, Mayor Uy acknowledged LWUA's decision and expressed a desire for the agency to mediate the ongoing contractual dispute between COWD and the Cagayan de Oro Bulk Water Inc. (COBI).
This conflict centers around a 2017 contract that stipulates an automatic increase in bulk water rates every three years.
Chairperson Ronnie Ong led the LWUA delegation.
Uy voiced concerns about the burden such increases place on the residents of Cagayan de Oro, emphasizing the need to protect the community from another water supply interruption.
The mayor also urged LWUA and Cagayan de Oro Bulk Inc., (COBI) to heed President Marcos’s call for unity in addressing the city's water crisis.
The President stressed the importance of ensuring an adequate, clean, and safe water supply for all residents during a speech in the city on May 16, 2024.
"We will not allow the people of Cagayan de Oro to be deprived of their right to have sufficient, clean, and safe water," President Marcos stated in his speech.
Mayor Uy reiterated this stance, emphasizing the City Government's commitment to protecting the general welfare as mandated by the Local Government Code and the Constitution.
He disclosed his willingness to meet with Metro Pacific Waters President and CEO Manny V. Pangilinan to discuss the water issues further.
“We wrote to MVP (Manny V. Pangilinan) after the President's visit,” Mayor Uy shared, noting that he has yet to receive a response from the business tycoon.
In a letter dated May 29, 2024, LWUA Corporate Board Secretary V, Julius Paolo C. Basa, informed the water district of the full intervention planned by LWUA.
The said full intervention, set to last six months, involves assuming both policy-making authority and management powers of COWD.
The letter, addressed to COWD's Board of Directors and General Manager, indicated that the current Regular Board of Directors would be set aside and cease their functions during this period.
The incumbent General Manager would also stop performing his duties but could be assigned specific tasks by the Interim General Manager.
This intervention by LWUA is based on their regulatory and supervisory powers under Presidential Decree No. 198 (PD No. 198), as amended.
It also follows COWD’s existing Financial Assistance Contract (FAC) with LWUA, which lists violations and corresponding remedies. LWUA’s decision aligns with the urgent directive from President Marcos, emphasizing the need for immediate and effective action to resolve the water crisis in Cagayan de Oro City.
The letter also mentioned that affected officers could seek meetings with LWUA or the interim officers and appeal the matter to the proper venue while the intervention is ongoing.
As the city braces for LWUA's full intervention, the residents of Cagayan de Oro remain hopeful that this move will lead to a more stable and fair water supply, free from the disruptions and price hikes that have plagued them in recent years.
The collaboration between local, national, and private entities is crucial in achieving this goal.
However, COWD General Manager Antonio Young and Board of Director Gerry Caño expressed strong objections to the intervention during a press conference in the evening.
"COWD did not violate anything as we do not recognize LWUA's letter," said Young.
The COWD board and Young even questioned the legality of LWUA's full intervention.
"I will follow the resolutions made by the existing board. We question the legality of the letter," Young stated.
Young also raised concerns about potential charges of abandonment or dereliction of duty if he complied with LWUA's demands without proper process.
"The manner of sending communication and receiving a document like this is questionable," said Board of Director Gerry Caño.
"Why was the letter order only signed by a LWUA corporate secretary V? Where is the board of trustee's resolution that supports this letter?" asked Caño.
Caño maintained that they will wait for the response of the Office of the Government Corporate Council (OGCC).
"If the OGCC says for us to follow LWUA's full intervention, that's the right time we will follow LWUA's letter," Caño stressed.
Meanwhile, LWUA's newly appointed interim general manager, Fermin Jarales, and the interim board members are set to take their oath before Mayor Uy at his office late in the afternoon, today, Thursday.
Jarales is known as a cooperative leader and labor union organizer.
"They (Young and Caño) have the right to question LWUA's letter," said Jarales, adding he is just accepting the appointment for the city's resolution in the water crisis in consonance with President Marcos' instruction to look for a long-term water solution.
