CONGRESSIONAL intervention is necessary to address the issue surrounding the chairmanship at the Metropolitan Cebu Water District (MCWD), city officials said amid the struggle for control over the government-owned and -controlled corporation’s board.
In a press conference on Friday, Dec. 1, 2023, Cebu City Mayor Michael Rama said he wants the national government to intervene in order to solve the issue and that he had already spoken with Rep. Eduardo Rama Jr. (Cebu City, south district) and Rep. Rachel Marguerite “Cutie” del Mar (Cebu City, north district) on the matter.
Rama added that he also wanted Cebu City Vice Mayor Raymond Alvin Garcia, together with the Cebu City Council, to create a resolution so that the needed probe will reach Congress.
In the Sugbuanon Channel segment “Ingna’ng Mayor” on Thursday, Nov. 30, 2023, Rama had expressed hope that Congress would create legislation defining the authority responsible for hiring and firing water district officials in specific areas.
During the press conference, Cebu City Budget Officer Jerone Castillo said the resolution from the City Council would help to address the issue, as the inaction of the Local Water Utilities Administration (LWUA) had created more confusion on the issue.
Castillo said there is a pressing need for Congress to look into the actions of LWUA, as the same issue might also crop up in other localities.
“If Congress will not look into it, the President, being the head of all the executives, should dip his finger now; otherwise, there will be so much confusion in running all water districts because LWUA cannot get its act together,” Castillo said.
Last Oct. 31, Rama appointed retired general Melquiades Feliciano, lawyer Aristotle Batuhan and businessman Nelson Yuvallos to replace MCWD chairman Jose Daluz III and board members Jodelyn May Seno and Miguelito Pato.
But the three have refused to leave their posts after an Oct. 17 letter by LWUA administrator Vicente Homer Revil and legal department manager Roberto San Andres, received by MCWD on Nov. 6, said “local executives have no authority to remove the chairperson and members of the board of directors of a water district.”
Presidential Decree (PD) 198, or the Provincial Water Utilities Act of 1973, says board members shall be appointed by the appointing authority, referring to the mayor or governor of the area covered by the water district, depending on the number of active water service connections within the boundary of the city or municipality.
PD 198 is silent on whether the same appointing authority may also remove the water district’s board members.
However, Cebu City’s position is that “the power to appoint carries with it the power to remove or discipline (Aguirre vs. De Castro, G.R. No. 127631, Dec. 17, 1999).”
Role of LGUs
Meanwhile, a bill proposing to amend PD 198 to allow local government units (LGUs) to intervene in water districts has been pending before the lower house and remains unacted upon a year since it was filed by del Mar.
Del Mar reintroduced her late father’s proposal to amend PD 198 to allow and encourage the oversight of LGUs on the performance of water districts during the first regular session of the 19th Congress on June 30, 2022 yet.
The website of the House of Representatives shows that the bill has been pending before the committee on public works and highways since July 27, 2022.
The proposed amendment stipulates that LGUs, whose constituents are served by the water district, will not interfere with the water district’s operations, but shall have the right and duty of oversight, specifically when service to their constituents is impaired.
At present, Section 7 of PD 198, as amended by PD 768, states that upon filing a resolution to form a water district, “the local government or governments concerned shall lose ownership, supervision and control or any right whatsoever over the district except as provided herein.”
Deal validity
The unsettled issue over who should rightfully sit on the board raises questions on the validity of agreements made by the board.
On Nov. 30, 2023, MCWD entered into an interim agreement with the Provincial Government for the procurement and sale of potable water after the Cebu Manila Water Development Inc. (CMWD) terminated its contract to supply MCWD with 35 million liters of water per day to Metro Cebu.
The agreement was signed by MCWD general manager Edgar Donoso and Gov. Gwendolyn Garcia in the presence of MCWD chairman Daluz and board members Seno and Pato, and Province Legal Officer Donato Villa Jr.
Asked about the validity of the agreement, given that Daluz, Seno and Pato were removed from their positions by Rama, while Donoso may be eyed for removal by the new board of directors, Cebu City Administrator Collin Rosell said Friday that Rama’s position is clear that MCWD has a new set of board of directors led by Feliciano.
Rosell added that as a lawyer, he could not comment on the validity of the agreement without having seen the document.
When asked whether the interim agreement that Daluz’s camp entered into with the Provincial Government will affect the future projects of MCWD under the leadership of Feliciano, Rosell said the appointed board will not be responsible for any agreements not undertaken by them.