LWUA insists on takeover of CDO water firm
CAGAYAN DE ORO CITY—The Local Water Utilities Administration (LWUA) on Tuesday put its foot down on attempts to undermine its authority over Cagayan de Oro City Water District (COWD), whose management it took over last year.
LWUA maintained that the takeover is “in the exercise of its regulatory powers” under Presidential Decree No. 198, or the Provincial Water Utilities Act, “and through the directive of President Ferdinand Marcos Jr.”
The LWUA statement was released to reporters here by COWD interim general manager Fermin Jarales, who is backed by LWUA.
Leadership squabble
The LWUA statement was issued apparently to help calm down a boiling leadership squabble after the regular board of directors of COWD, which are currently set aside due to the agency’s management takeover, convened and designated the water district’s assistant general manager, Edna Najeal, as acting general manager beginning on Monday, March 3.
Gerry Caño, chair of COWD’s regular board, said the action was premised on their inability to receive a copy of the LWUA governing board’s resolution extending the term of the interim management by six months, from March 1 to Aug. 30 this year.
On Monday, the LWUA board’s resolution, dated Feb. 25 was posted at COWD’s doors upon the order of Jarales.
‘Minor kinks’
But Caño, and the employees’ union of COWD, said they are not honoring the LWUA board’s resolution.
Jarales told journalists on Monday that amid this “minor kinks,” it is business as usual in his office, with him signing official documents.
Najeal, on the other hand, said she had been dispensing orders to employees and writing agencies and banks about her takeover as acting general manager. She holds fort at the office for assistant general manager.
LWUA’s full intervention in COWD started on May 29, 2024, amid threats from Cagayan de Oro Bulkwater Inc. (Cobi) to cut off supply to the water district over supposedly unpaid bills, potentially affecting 40,000 connections.
Stiff resistance
Cobi was asking payment of over P400 million as its contract provided for an automatic rate increase every three years. But COWD did not pay as the supposed increase was not reflected in its billing to consumers, and there was no public hearing on the rate adjustment.
The interim management officers LWUA appointed, among them Jarales, to run the water district in its behalf, were not able to discharge their functions for about three months due to stiff resistance from COWD.
On Nov. 29, 2024, LWUA extended by another three months the interim management, as if to compensate for the lost time.
Since its takeover, LWUA said the interim management “has made considerable and valuable effort to rehabilitate COWD.”
“These efforts include plans for past-due account collection, nonrevenue water reduction, and cost-cutting measures—aligned with a five-year business development plan developed by the COWD’s interim board of directors,” LWUA’s statement on Monday noted.
“Since the implementation of these plans will take a considerable length of time, coupled with the three-month delay, it is necessary to extend LWUA’s takeover of COWD,” the agency added.
During the city council session on Monday, Councilor Edgar Cabanlas slammed LWUA for the continued intervention in COWD’s affairs saying this action is tantamount to “undermining the power of the mayor over the appointment of the regular board” of the water district.
