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Thursday, August 25, 2005
Non-profit bloc defends record on water funds
By Linette C. Ramos
Sun.Star Staff Reporter


With P14.5 million worth of ongoing projects in Cebu City alone, the Water Resource Center (WRC) disputed allegations that its project involving the Dutch Government’s multi-million financial assistance is a scam.

WRC founding director Fr. Herman van Engelen said he does not know where Mayor Tomas Osmeña has been basing his comments about their organization, adding the mayor may have an agenda in attacking the integrity of the WRC officers and their projects.

Aside from having complied with all inception, progress and audit reports required by the Dutch Government, WRC also has Dutch consultants representing their Netherlands-based partners.

The Dutch representatives who are helping the water projects here will know if there was any anomaly and will report this to the Dutch Government, WRC project director Fe Walag said.

Engelen, a Dutch national, said it was not the Dutch Government that asked Osmeña and Gov. Gwendolyn Garcia to intervene in WRC’s operations.

“I was informed by the representative of the Dutch Government that the governor and mayor demanded full control of the project funds. The representative of the Dutch Government could not grant this demand because the control of the funds has been formulated in the contract,” he told Sun.Star Cebu.

The Dutch Government gave a P115-million financial assistance to fund the Water Resources Management through Integrated Development (Water Remind) project.

Water Remind is a project that seeks to improve the management of the water resources in six cities and 10 towns in Cebu. Its components were implemented starting 2002 until 2007.

One million euros more will go directly to the Dutch consultants who will help implement the project.

Spadework

In Cebu City, projects including solid waste management, headwater restoration, capability building in the barangays, soil and water conservation, health and sanitation and water system development and management projects are being implemented by WRC with private sector partners.

Contrary to the mayor’s statement that Cebu City as a local government unit partner did not benefit from the Dutch-funded projects, the projects in at least six mountain barangays will continue up to March next year.

“The long-term benefits of the project will be for Cebu. We may not see it yet today but in the future, it will all be for Cebu,” Engelen said.

With regards to the mayor’s allegations that WRC has not liquidated the funds it received, Walag said they have complied with all audit requirements of the Dutch Embassy.

Otherwise, she added, the second tranche of the P63 million that WRC has so far received would not have been released to them.

Audit reports

As stated in the contract signed by the WRC and the Dutch Government, the WRC is supposed to submit a progress and audit report at the end of each phase, before funding for the next phase is released.

Apart from the WRC’s internal audit, an external auditor appointed by the Dutch Embassy also audits WRC’s finances and acquisitions, a report of which will be submitted to the Dutch Government.

Osmeña earlier said he sensed there is a scam in the way WRC is handling the fund and alleged that it failed to liquidate the funds from the Dutch Government.

Of the P115 million that WRC will get for the project, P31.6 million will go to the salaries of the personnel and contractors and P33.8 million for acquisitions, such as for equipment and vehicles.

About P8.4 million will go to operational costs, P23.9 million for training and courses of staff and P17.4 million for indirect costs for the project.

(August 25, 2005 issue)
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