CAGAYAN DE ORO, Philippines – The Local Water Utilities Administration (LWUA) installed interim officials in the Cagayan de Oro Water District (COWD) on Wednesday, May 29, a move questioned by the firm’s general manager and at least one director.

LWUA Chairman Ronnie Ong accompanied the interim officials to the COWD, describing the move as a “full intervention” by the regulator of water districts. The move came two weeks after the LWUA board approved a resolution for the takeover of the COWD.

The LWUA appointed Fermin Jarales as the interim general manager of COWD, while Engineer Antonio Ramirez of LWUA was appointed as the interim chairperson of the board of directors.

The regulator also appointed Amelia dela Rosa and lawyers Noel Bacal and Donn Kapunan as members of the COWD’s interim board.

According to LWUA, the interim officials would serve in the water district for six months, although their terms may be extended. 

LWUA said Engineer Antonio Young, COWD’s general manager, may be given other tasks during this period, and the local government-appointed members of the COWD board were “set aside.”

“With the directive from President Ferdinand ‘Bongbong’ Marcos Jr. to look into managing the water district, LWUA as the regulator has assessed and ensured the legality and lawfulness of this full intervention,” Ong said.

It was Marcos who directed the LWUA to look into the possibility of a COWD takeover due to the water crisis that gripped the city as a result of the water district’s debt dispute with its primary supplier of treated water, the Manny V. Pangilinan-controlled Cagayan de Oro Bulk Water Incorporated (COBI).

Ong told Rappler that the primary basis for the LWUA takeover was the COWD’s high non-revenue water (NRW) or treated water wasted due to pipe leaks and unauthorized connections, among others.

As of 2023, the NRW of COWD was 49.08%, reduced by over 8% from 57.67% in 2019.

Addressing this problem, Ong said, is part of the COWD’s financial assistance contract with LWUA. 

Young, for his part, said the water district has an existing loan with LWUA, with an outstanding balance of P11 million, used for establishing certain facilities. However, he clarified that these facilities were not part of their NRW reduction program.

He said the COWD secured a P400 million loan from the Department of Budget and Management (DBM) in 2017, for its NRW reduction program, but only P200 million has been released so far.

Despite LWUA’s move to take over the COWD, Young said he wouldn’t abandon his post as general manager and would wait for the legal opinion of the Office of the Government Corporate Counsel (OGCC). The COWD is a government-owned and -controlled corporation (GOCC).

Young and Gerry Cano, one of the affected COWD directors, questioned the LWUA takeover and the appointment of the interim officials.

They said they would continue to perform their functions as general manager and director of the COWD despite the appointment of LWUA’s interim officials for the water district. 

Young, however, said he would relinquish his post if the OGCC upholds the LWUA’s decision.

They said the COWD board of directors passed a resolution on May 18, not to acknowledge LWUA’s move to take over the water district. This was made a day after the LWUA board approved the takeover.

Cagayan de Oro Mayor Rolando Uy met with Ong and acknowledged LWUA’s decision to take over the COWD.

Uy also expressed hope that the LWUA would be able to resolve the ongoing dispute between COWD and COBI. He also expressed concerns about the 2017 COWD-COBI contract which allows the bulk water supplier to adjust its water rates every three years. – Rappler.com