OGCC opinion on lwua actions: Takeover ‘invalid’

CEBU, Philippines — Metro Cebu Water District (MCWD) officials yesterday announced that the Office of the Government Corporate Counsel (OGCC), in a recent opinion, has deemed as “not valid” the March 15 partial takeover of the water utility firm by the Local Water Utilities Administration (LWUA).

The OGCC said the partial takeover was” not consistent with provisions of Presidential Decree (PD) 198,” which created the LWUA and defined its powers.

The May 9 opinion was in response to MCWD’s April 16 request for an opinion to clarify the grounds of the partial takeover.

“Specifically, the partial takeover or intervention in this instance is outside the purview of Sections 36 and 61(e) of PD No. 198. Thus, the instant partial takeover or intervention of LWUA in MCWD is not valid,” read the opinion.

The document was signed by Government Corporate Counsel Solomon M. Hermosura and Government Corporate Attorney Officer-in-Charge for Team Environment and Water Owen M. Vidad.

After it took over, LWUA installed an Interim Board of Directors (IBOD) based on LWUA Board of Trustees Resolution No. 35, which the MCWD Board and management said they were not notified about.

In a statement MCWD said that the OGCC stated that LWUA’s power to take over or intervene in the operations and management of the water district, including policymaking, was “not absolute and must be exercised with caution and prudence” and within the limits imposed by PD No. 198.

“LWUA claims its intervention is based on MCWD's loan default, but the OGCC clearly stated that the existence of default on the part of the borrower water district must be established, and the district must be given the opportunity to cure the default,” MCWD said.

This OGCC opinion, MCWD said, clarified that partial takeover is not valid, thus the actions done by LWUA was also not valid, including the appointment of the IBOD and its resolutions.

With this, Daluz said that they are “going to savor the peace” and go on with their operations, considering that the city is facing the challenges of El Niño.

“It is just the feeling nga wala nay manghilabot nato,” he said.

Daluz said that would forward the OGCC opinion to the LWUA with the hope that it would honor what it says.

The Freeman has reached out to LWUA Administrator Moises Salonga yesterday but he responded that he would like to read the OGCC opinion first.

“Let me just get an official document,” he said. — (FREEMAN)