In a resounding show of solidarity, Gov. Gwen Garcia, alongside the Provincial Board and at least eight Cebu mayors, has unequivocally thrown her support behind the present management of the Metropolitan Cebu Water District (MCWD), led by Chairman Jose Daluz III and general manager Edgar Donoso.
Following a high-level meeting held at the Capitol on Monday, April 15, the collective voice of local government leaders rang out in a joint manifesto, condemning what they deemed as the unlawful actions of Local Water Utilities Administration, led by LWUA Administrator Atty. Jose Moises Salonga.
The meeting and press conference on Monday saw mayors from various LGUs within the service area of MCWD coming together to express their unwavering support for the current management amidst recent power struggle at MCWD.
The mayors present were Mandaue City Mayor Jonas Cortes, Lapu-Lapu City Mayor Junard Chan, Talisay City Mayor Samsam Gullas, Cordova Mayor Cesar Suan, Consolacion Mayor Teresa Alegado, Liloan Mayor Aljew Frasco of Liloan, and Compostela Mayor Felijur Quiňo.
Daanbantayan Mayor Sun Shimura also expressed his sentiments of support in his capacity as president of the League of Municipalities of the Philippines-Cebu Chapter.
Their joint manifesto not only denounced the supposed unlawful interventions of LWUA but also underscored the critical importance of preserving the rule of law and safeguarding vital water services for Cebu Province’s constituents.
The issue stemmed from LWUA’s appointment of five interim members of the Board of Directors — three of who are not from Cebu but from LWUA itself — as well as apparent change in leadership at MCWD in what is admittedly a “take over” by LWUA.
However, Capitol lawyers elucidated that Presidential Decree No. 198 which created the LWUA contemplates a valid takeover by LWUA only when a water district such as MCWD defaults in its financial obligations to LWUA.
Section 61(e) of PD 198, as amended by Sec. 31 of PD 768, reads: “In the event of default by the local water district in the payment of principle or interest on its outstanding bonds or other obligations to the Administration (LWUA), the latter may, without the necessity of judicial process, take over and operate the facilities or properties of the district.”
However, Chairman Daluz, who was also present at the meeting, said they are not in default yet because there has never been a demand letter issued by LWUA, a requisite provided by law in placing the debtor in default.
Moreover, he revealed, their obligation to LWUA is only P13.7 million, with a monthly amortization of P50,000 — terms which according to him are very manageable on MCWD’s end.
Granting 𝑎𝑟𝑔𝑢𝑒𝑛𝑑𝑜, that MCWD incurs in delay of defaults in its obligation, still LWUA cannot automatically make a valid takeover because MCWD shall be given all the chance to cure the default, says the legal opinion of the Office of the Government Corporate Counsel (OGCC), the principal law office of all Government-Owned or Controlled Corporations (GOCCs) such as MCWD.
"Moreover, the procedures and remedies provided under the loan agreement must be exhausted before any takeover or intervention is resorted to, taking into account the basic requirements of due process, substantive and procedural," OGCC opinion reads.
For her part, Gov. Gwen said the dispute between MCWD and LWUA is something that Cebu could do without, especially that the more pressing problem of the scarcity of water is hurting the Cebuanos.
“We are facing a real and present danger, the crisis of shortage of water because of El Niño. And yet this has been picked as the worst possible time by LWUA to intervene and cause confusion and havoc in the operations of MCWD,” the Governor said.
Gov. Gwen added that LWUA’s intervention is untimely and creates confusion among the employees and consumers of the local water district, posing a significant threat to the stability and efficiency of water services in Cebu.
Gov. Gwen emphasized that the present management of MCWD has to remain especially since Cebu is battling an ongoing dry spell. Disrupting this continuity, with officials not from Cebu who may be unfamiliar with how the water district works, the governor asserted, could lead to detrimental consequences for the communities relying on MCWD for their water needs.
She noted moreover, that there are at least 1.6 million people relying on MCWD water services in Metro Cebu areas outside Cebu City but fall squarely within the jurisdiction of Cebu Province, prompting her to speak out unequivocally. | CL