OGCC says LWUA intervention in Cebu water district’s operations invalid

'The LWUA may take over or intervene in the management and operations of a local water district only when the district is in default of its loan obligation,' says the Office of the Government Corporate Counsel

CEBU, Philippines – The Local Water Utilities Administration’s (LWUA) intervention in the operations of the Metropolitan Cebu Water District (MCWD) was invalid, the Office of the Government Corporate Counsel (OGCC) argued.

The MCWD revealed during a press conference on Tuesday, May 14, that Government Corporate Counsel Solomon Hermosura and Government Corporate Attorney Owen Vidad had issued Opinion No. 80, Series of 2024 on May 9 about the legitimacy of the water administration’s takeover of the Cebu water district.

To recall, the LWUA enforced an intervention in the operations of the MCWD on March 15, suspending members of the water district’s board of directors to pave the way for an investigation into the MCWD’s alleged failure to comply with its obligations to the LWUA. 

In the said opinion, the OGCC stated that the LWUA’s intervention was “inconsistent” with the provisions of Presidential Decree No. 198, which lays out the regulations in dealing with water districts that are in default. 

“The LWUA may take over or intervene in the management and operations of a local water district only when the district is in default of its loan obligation,” the OGCC said.

The OGCC discussed that there was no finding of default on the part of MCWD in the payment of its loan obligation with LWUA, and that LWUA made no mention about any default in its March 15 letter to the water district.

It also said that if there was any default, the MCWD must be given the opportunity to cure the default. 

“The LWUA violated its own Policy Guidelines on Intervention by automatically resorting to a partial takeover or intervention sans any finding of default of the water district and without any showing that the basic requirements of due process have been complied with,” the OGCC opinion read.

Savor the peace

“On behalf of the board, we just want to savor the peace,” MCWD Chairman Jose Daluz III told reporters on Tuesday morning.

The chairman who had been clashing with suspended Cebu City Mayor Mike Rama over the water district’s leadership said that the OGCC opinion brought relief to the employees and management of MCWD. 

In a statement, the water district said that the OGCC “reaffirmed” the MCWD’s status quo stance of recognizing only the Daluz-led board of directors and general manager Edgar Donoso rather than the interim board installed by LWUA.

On Tuesday afternoon, Cebu City Acting Mayor Raymond Alvin Garcia met with the Daluz-led board to discuss collaborations between the formerly conflicting parties.

“We can work hand in hand. Di ta kinahanglan mag away-away (We don’t have to fight),” Garcia said in a statement posted on the Cebu City Public Information Office’s social media page.

Rappler has reached out to LWUA-appointed MCWD officer-in-charge Joselito Baena for a comment on the matter and was informed that a statement will be released later in the day. This article will be updated once the statement is made available. – Rappler.com