MindanaoToday.com | Execs: No takeover of COWD by LWUA
By Jigger Jerusalem
OFFICIALS over the weekend had denied that the Local Water Utilities Administration (LWUA) has taken over the Cagayan de Oro City Water District (COWD).
The government-owned and controlled water utility is presently at the center of controversy involving its supplier, the Cagayan de Oro Bulk Water Inc. (COBI), over what the latter has claimed are unpaid contractual obligation by COWD amounting to P479 million.
COBI was created out of the joint venture agreement between COWD and the Manuel V. Pangilinan-owned Metro Pacific Water in 2017 in response to the need for COWD to boost its water supply to
the city’s consumers.
Citing “force majeure” as reason, COWD has said it did not implement adjustment of its water rates during the Covid-19 pandemic despite demand from COBI to do so.
After a series of notices, COBI announced it was closing the valves on May 13, but the COWD was able to secure a temporary restraining order from a local court on May 14 prompting the bulk water supplier to restore the water supply.
During his visit here Thursday, May 16, Pres. Ferdinand Marcos Jr. has instructed LWUA to look into the COWD situation as he emphasized that there should not have been a cut-off of water supply.
In a press conference held Monday, May 20, Dr. Gerry Caño, a member of the COWD board of directors, has denied that the LWUA has taken over the COWD amid reports circulating on social and mainstream media a few days ago.
The report has stemmed from a statement given by LWUA Chair Ronnie Ong last week that became the basis for local and national media outlets to publish the supposed takeover.
“We were surprised [of the takeover report] as no official document has reached our office regarding the LWUA takeover. You can only read about it on social media and we don’t know if it’s authentic or if it’s true or not,” Caño told reporters during the press briefing.
Until the COWD receives an official document from LWUA, Caño said, LWUA cannot just announce that it has taken over the water utility, adding that a takeover is not a quick act but must undergo a legal and thorough process.
For his part, lawyer James Judith, city councilor and member of the task force created by Mayor Rolando Uy to address COWD’s water situation, called the LWUA resolution as “with malice” and “ill-timed.”
Judith noted that LWUA can only take over a water district’s management and operations if it has defaulted on its financial obligations to LWUA, which did not happen in the case of the COWD.
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