THE Local Water Utilities Administration (LWUA) has no basis to take over the operations of the Metropolitan Cebu Water District (MCWD), the latter’s board of directors said in a statement.
According to the board, Section 8 of Presidential Decree (PD) 198 or the Provincial Water Utilities Act of 1973, which was cited by LWUA as basis for the takeover, only mentions one ground for a takeover -- financial indebtedness to LWUA.
PD 198, as amended by PD 768, states: “Provided, however, that if the district has availed (itself) of the financial assistance of the Administration, the Administration may appoint any of its personnel to sit in the board of directors with all rights and privileges appertaining to a regular member, for such period as the indebtedness remains unpaid, in which case the board shall be composed of six members.”
In such case, the MCWD board has emphasized that the water utility firm is not in a period of indebtedness to LWUA.
Charmaine Rodriguez-Kara, MCWD spokesperson, said MCWD’s operations remains normal while the board continues to hold regular
meetings.
The board is awaiting LWUA’s final decision on the order of Cebu City Mayor Edgardo Labella terminating five MCWD board members.
They also want to be enlightened about the function of the interim board, Kara said.
“We want to know what will be their function because we’re also confused. Will they function together with the board?” she asked.
The LWUA has designated an interim board of directors for the partial takeover of MCWD so the institutional crisis will not hamper its operation following Labella’s order to terminate five board members, and the subsequent resignation of MCWD chairman Joel Mari Yu.
“We deem it necessary to designate members of the interim board of directors for the partial takeover of the Metropolitan Cebu Water District due to serious institutional crisis which may hamper the operation of the district to the prejudice of the public pending review by this office of the action taken by the mayor,” LWUA said in a press release.
On Oct. 15, 2019, Labella terminated the services of the members of the MCWD board for their failure to address the water crisis in Metro Cebu.
He sent individual letters to Yu, vice chairman Ralph Sevilla, Augustus Pe Jr., Procopio Fernandez and Cecilia Adlawan.
Labella said he was prompted to issue the dismissal order because of the dissatisfaction expressed by seven local government units (LGUs).
Earlier, seven of eight LGUs within MCWD’s franchise area have called out MCWD for its poor and unreliable service, citing the water supply shortage that continues to affect their constituents.
The towns of Consolacion, Cordova and Liloan and the cities of Talisay, Cebu, Lapu-Lapu and Mandaue have passed resolutions expressing their dissatisfaction with MCWD’s service.
The Provincial Board passed a similar resolution on Sept. 23, and asked the Office of Ombudsman to explore the possibility of filing appropriate charges against accountable MCWD officials.
MCWD general manager Eugenio Singson Jr. also resigned effective Nov. 1. JJL with PR