MindanaoToday.com | LWUA takes over COWD
By: Uriel Quilinguing
State regulator Local Water Utilities Administration (LWUA) has taken over the management of the Cagayan de Oro Water District (COWD) on Wednesday, May 29, 2024 despite the opposition of the regular COWD Board of Directors (BOD) and general manager.
The regular COWD-BOD has sought the legal opinions from the Office of the Government Corporate Counsel (OGCC) and the Commission on Audit (COA) on LWUA’s “full intervention,” claiming they have not been remiss of their financial obligation to LWUA.
LWUA-appointed general manager and four directors of the COWD board, all on six-month interim capacity, reported to office that day. They took their oaths of office on Thursday, May 30, 2024 before Cagayan de Oro City Mayor Rolando Uy.
“All employees are directed to report to us and not transact any suspended officer nor release information or report without our knowledge and approval,” reads part of an unnumbered Memorandum, dated May 30, 2024, that Interim General Manager Fermin Jarales issued.
The members of the interim BOD (IBOD) are Engineer Antonio Ramirez of LWUA, chairperson; lawyers Donn Rico Kapunan and Noel Bacal; and Amelia De La Rosa.
On Wednesday, May 29, the IBOD passed Resolution No. 1, stating that the general manager, Engr. Antonio Young, “is set aside for a period of six months effective May 29, 2024, and shall follow henceforth the instructions of the IGM.” It further reads that “all members of the regular BOD shall cease and desist from exercising their powers and functions for a period of six months effective May 29, 2024.”
IBOD Resolution No. 1, series of 2024, was issued pursuant to LWUA Resolution No. 34, series of 2024, approving the full intervention of LWUA in the COWD and that it shall be implemented through the designation and/or appointment of an IBOD and IGM.
LWUA’s decision for full intervention was due to COWD’s “default of obligations under its Financial Assistance Contract with LWUA and in accordance with the regulatory powers of LWUA under Presidential Decree No. 198, as amended, and Republic Act No. 11659 and with the directive of the President (Ferdinand R. Marcos Jr.) given during his visit and speech in Cagayan de Oro on May 16, 2024.”
Prior to the assumption, LWUA chairperson Ronnie Ong, with the designated IGM and IBOD members, paid a call to Mayor Uy.
“We expect everyone to maintain professionalism, prevent sabotage, and continuous and excellent service to our clients,” the memorandum further states.
Still, the regular COWD BOD members, maintained it does not recognize the LWUA takeover based on a Board Resolution, saying they have been regularly paying LWUA its financial obligations. (MT)
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