Interim Board of Directors installed: LWUA takes over MWCD

CEBU, Philippines —  The Local Water Utilities Administration (LWUA) has finally intervened in the stalemate at the Metropolitan Cebu Water District for at least half a year by taking over the utility firm yesterday.

In particular, Atty. Jose Daluz III and the rest of the MCWD Board of Directors (BOD) were told to “cease and desist from exercising their functions during the period of LWUA's intervention.”

General Manager Edgar Danoso, though, remains in his current post.

The takeover was in compliance with the Sept. 28, 2023 LWUA Board of Trustees (BOT) Board Resolution No.35 that allowed LWUA intervention with MCWD management for six months.

LWUA is “a government-owned and controlled corporation (GOCC) with a specialized lending function mandated by law to promote and oversee the development of water supply systems in provincial cities and municipalities outside of Metropolitan Manila.”

In other words, it holds authority over MCWD.

Under LWUA BOT Resolution No. 35, its intervention with MCWD includes the appointment of an Interim Board of Directors by the LWUA, through its administrator.

The resolution, however, was not implemented right away, resulting to MCWD having two sets of BOD—one led by Daluz with Miguelito Pato and Jodelyn Seno as members, and the other led by Retired General Melquiades Feliciano with Atty. Aristotle Batuhan, businessman Nelson Yuballos, and lawyers Earl Bonachita and Danilo Ortiz as members.

Mayor Michael Rama October last year fired Daluz, Pato, and Seno and appointed Feliciano, Batuhan, and Yuballos to the MCWD BOD.

Daluz and the others, however, refused to step down, arguing that the mayor does not have the power to do so and they do not want to be charged with dereliction of duty. Retained BOD members Bonachita and Ortiz sided with Feliciano’s group.

Last. Feb. 19, when President Ferdinand Marcos Jr. replaced Atty. Vicente Homer Revil as administrator, LWUA Chairman Ronnie Ong, in an interview with The Freeman, pledged to discuss the pending resolution concerning MCWD with Atty. Jose Moises Salonga, the new LWUA administrator.

True enough, in a March 15 letter, Salonga told Daluz and Danoso, in explaining yesterday’s takeover, that “(t)he Board of Trustees, through the LWUA Management, has executed Board Resolution no.35 based on technical parameters.”

Salonga said he executed the “long-standing board resolution to protect not only the viability of the water district, but to also ensure continued services to the public.”

In particular, the intervention is part of LWUA’s “efforts to ensure a reliable wat avert any water crisis especially with the ongoing EI Nino.”

“This is to respectfully inform the Metropolitan Cebu Water District (MCWD) that the Local Water Utilities Administration (LWUA) is implementing effective today the partial intervention of LWUA in MCWD through the assumption or take-over of the latter's policy-making authority,” Salonga said, in his letter.

“All members of the current Regular Board of Directors shall be set aside and shall cease and desist from exercising their functions during the period of LWUA’s intervention,” he added.

Yesterday, he sent Deputy Administrator Eileen L. Dela Vega to oversee the installation of LWUA officers that have been designated as members of the Interim Board of Directors of MCWD for a period of six months, namely: Maria Rosan D. Perez, Engr. Noel A. Samonte, and Engr. Anabelle C. Gravador.

The functions of the Interim Board of Directors include “operating the entire facilities, systems, or properties of MCWD” and ensuring that “public biddings, NRW projects and other negotiations are compliant with law,” in the light of the “hostile environment between the MCWD and the Cebu City LGU.”

Specifically, Board Resolution No. 35 stated among the reasons for LWUA’s intervention is the “high non-revenue water (NRW) loss on revenue by an average of at least Php P117.759 million.”

MCWD allegedly also failed to comply with procurement laws and that it came up with a “questionable 70% water rate increase, which the Cebu City LGU also publicly objects for it adversely affect the general public.”

Yesterday, although policemen were deployed for security reasons, it was a peaceful takeover.

The FREEMAN, however, could not confirm, as of press time, if Daluz and Danoso were present when the Interim Board Directors arrived and held a closed-door meeting in Danoso’s office.

MCWD personnel also refused to grant an interview, saying the management would just issue an official statement.

Rama, in an interview, also declined to issue any statement except to say that the heavens have heard the Cebuanos’ prayers, especially by those who are in dire need of ample water supply. (CEBU NEWS)