by BenCyrus G. Ellorin/ July 23, 2024

CAGAYAN DE ORO CITY — After a week of absence from public view, the general manager appointed by the Local Water Utilities Administration (LWUA) was met by the sound siren when he tried to enter the building of the Cagayan de Oro Water District (COWD) last Monday.

Protesters turned at the beleaguered water utility Tuesday morning, with calls on the water regulator to address the “basic” issue that resulted in the water crises in the city — the 2017 bulk water supply contract between the COWD and the Cagayan de Oro Bulk Water Inc. (COBI) which is 95% owned by Metro Pacific Water.

In a press statement released Monday afternoon, Fermin Jarales, interim general manager of the COWD said “While the interim Board and Management have shown restraint and courtesy towards COWD officials and employees, they will not tolerate illegal action and committed to prosecuting those involved.”

Jarales issued the statement after he tried to enter the COWD building, but the guards locked the doors on him, and sirens blared.

He branded as an “act of desperation” the forcible entry into the office of the general manager last July 18. An act that “highlights their mismanagement and disregard for legal processes.”

Meanwhile, the Bantay Tubig Movement again showed up at the COWD with placards to protest LWUA’s intervention at the COWD. They reiterated their call that the issue is the “onerous bulkwater contract between COBI and COWD that resulted in the supposed debt of COWD, and the disconnection of the bulk water supply because COWD did not pay the supposed obligation.”

”Gusto namo kabag-ohan sa COWD. Gusto namo ma address kanang taas kaayo nga non-revenue water, pero dili man kana ang tumong sa LWUA sa pag-anhi dire syudad. Ang pagresolbar man sa isyu sa kontrata,” former city councilor and Bantay Tubig Movement convenor Enrico Salcedo told CurrentPH.

Antonio Young, the regular general manager on the other said he was duty-bound to function as general manager to ensure the continuing operations of the COWD.

The Commission on Audit has not acknowledged Jarales as a signatory of checks and disbursement vouchers of the COWD, citing the rule that only a regular officer can do so. The LWUA had declared they were taking over or doing “full intervention” of the COWD for six months. They took over last May 29, 2024.

Salcedo added that the actions of Jarales were far out as he did not take urgent actions on the contractual issue. This fueled fears that the LWUA would eventually have the COWD pay the P479 million in differentials for rate increases in 2021 and January 2024. The COWD has refused to acknowledge that obligation citing force majeure — the Covid-19 pandemic, prevented them from raising consumer prices to cope with the automatic escalation of bulkwater prices from COBI every three years as stipulated in the 2017 contract.

“Balik ta sa issue. Ayha na nato na istoryahan ang ubang issues sa COWD,” Salcedo reiterated.

Mayor Klarex Uy had urged LWUA to facilitate the resolution of the contractual differences and has called for the reformation of the 2017 contract to rid it of the provisions for increase every three years.

Upon inquiry by the LWUA on the legality of their takeover, the Dept. of Justice (DOJ) replied with a legal opinion last June 18, 2024, saying they can only take over the water district if the said water district has defaulted in paying their financial obligations the water regulator.

The DOJ added that the LWUA cannot fix rates of the water districts, in response to their query whether they can take over to fix rates for the water districts to comply with their obligations.

The LWUA however has not heeded the legal opinion of the DOJ. A case for Prohibition against LWUA’s takeover is pending before the Regional Trial Court Branch 41.