IN a surprising turn of events, photos and a video were sent to Gold Star Daily News on Friday, revealing a troubling situation.
The images and a five-minute video showed equipment, funded by a loan from the Development Bank of the Philippines (DBP), sitting in a degraded state at a warehouse in Barangay Kauswagan. This equipment was reportedly delivered to the Cagayan de Oro Water District (COWD) in 2017.
COWD’s Interim General Manager, Fermin Jarales, confirmed the report’s authenticity and expressed serious concern.
Jarales, after seeing the report, went to the warehouse himself and was shocked by what he found.
“We have received reports about this,” Jarales said. “I have asked my team to investigate thoroughly.”
He criticized the apparent mismanagement, saying, “This issue is serious because it shows major neglect by the management.”
“We will take necessary steps and pursue charges if needed. We are committed to finding the truth,” Jarales told Gold Star Daily, on Friday.
He did not disclose the total cost of the equipment, mentioning the ongoing investigation.
“We are thinking of forming a special committee to investigate this,” Jarales said.
The committee’s role would be to ensure a fair investigation, he explained.
“The committee will look into the details, including the exact amount involved,” Jarales said.
Although he couldn’t give a precise figure, he said the amount is significant. Jarales emphasized COWD’s dedication to transparency and accountability.
Attempts to reach COWD’s regular general manager, Engr. Antonio Young, for comment, was unsuccessful.
However, COWD board member Gerry Caño disputed Jarales’ report, calling it misleading and an attempt to cause disruption.
Caño accused Jarales of violating government protocols during his investigation and said Jarales forced entry into the warehouse, which goes against the inventory rules and regulations, and COA audit requirements.
“The equipment is not consumable and cannot rot. They are stored for future repairs,” Caño told Gold Star Daily.
He clarified that the stocks are materials intended for immediate response in times of repair to prevent water wastage due to leakage.
Caño explained that the materials are part of the District Metering Area for the NRW Reduction program, funded by a DBP loan of P203 million.
This program is 82% complete, but around 18%, or about seven DMAs, are pending installation because the local government and Department of Public Works and Highways have not yet issued permits for excavation work, which would cause heavy traffic in the city’s commercial areas.
Caño emphasized that all equipment is government property, properly recorded, and audited by the Commission on Audit, and there were no irregularities in the purchase.
“The boxes labeled 2017 were emptied and are now used to store new supplies for future repairs,” Caño explained.
