The Local Water Utilities Administration (LWUA) has not taken over the Cagayan de Oro Water District (COWD), contrary to earlier reports, according to Dr. Gerry Cano, a member of the local board.
In a letter to MindaNews dated May 22 but received via email on May 23, Cano said the board and general manager of COWD “continue to provide services to the public and no officials or appointees from LWUA have presented themselves before our office.” (As of this posting, MindaNews learned that the status quo remains.)
He also said that “COWD has not received any official communication or resolution from the [LWUA] concerning a potential full takeover of COWD’s management and operation.”
On May 18, MindaNews reported that the LWUA had taken over the water district and fired its board members and general manager the day before.
The LWUA Board passed a resolution approving the takeover of COWD on May 17, but has yet to implement the takeover.
The resolution was passed a day after President Ferdinand Marcos Jr. urged it to “study the possibility” of immediately taking over the COWD to find the best solution that would address the water woes in Cagayan de Oro.
The decision to take over COWD was contained in LWUA Board Resolution No. 34 which also provided for the designation of an interim board of directors and an interim general manager in view of COWD’s “default on its obligations under the FAC (Financial Agreement Contract) with LWUA.”
The resolution also authorized the LWUA administrator to implement the resolution and ensure the installation of the interim officers at the soonest possible time.
As of May 23, the LWUA has not named an interim board and interim manager.
The resolution also states that LWUA’s “full intervention” in the COWD is only for six months from the installation of the interim board and interim general manager, but could be extended by the Administrator if the problem or deficiency remains or there are “no satisfactory program/s or solution/s in place.”
Its focus will be on determining short-term solutions in the water supply situation in Cagayan de Oro; operating the entire facilities, systems or properties of COWD in an efficient manner consistent with sound legal, administrative and financial practices; addressing any irregularity and problem in the accounts of COWD and its obligation to LWUA, to suppliers and to the consumers; and implementing all other measures that will address the violation and all the causes of default, according to the resolution.
During his visit to Cagayan de Oro, Marcos directed LWUA to resolve the squabble between COWD and its water supplier, Cagayan de Oro Bulk Water Inc. (COBI), over a disputed P479-million debt.
The Pangilinan-owned COBI cut off water supply to consumers in Cagayan de Oro after failing to reach a settlement with COWD on May 14.
The COWD went to court and managed to get a 72-hour temporary restraining order on Tuesday night last week, May 14. (MindaNews)