LWUA flagged over illegal takeover of Metro Cebu Water District

đź“· pna.gov.ph

THE government can not just take over Metropolitan Cebu Water District (MCWD) unless it has violated provisions or defaulted on paying outstanding loans, says the Office of the Government Corporate Counsel (OGCC).

According to OGCC, the Local Water Utilities Administration (LWUA) erred in taking over the MCWD by appointing interim board of directors.

The document signed by government corporate counsel Solomon Hermosura, OGCC Environmental and Water Division officer-in-charge Owen Vidad reads: “The instant partial takeover of intervention of LWUA in MCWD is not valid.”

Previously, the MCWD sought for OGCC’s opinion regarding the alleged illegal takeover for which the OGCC found “no default on the part of MCWD in the payment of its loan obligation with the LWUA.”

“MCWD has not even furnished a copy of LWUA BOT (Board of Trustees) Resolution No. 35 that was used as basis for the takeover” reads a portion of the OGCC document, which interestingly doesn’t even make mention of the word “default.”

Moreover, the OGCC finds LWUA violating its own policy guidelines on intervention, when it took over MCWD without due process.

LWUA implemented a partial takeover of MCWD on March 15 and appointed an interim Board of Directors (IBOD) based on LWUA Resolution No. 35 for which the MCWD sought help from the OGCC.

OCC insisted that LWUA can only take over MCWD in the event of default in the payment of its loan obligation, as provided under Sections 36 and 61(e) of Presidential Decree 198.

LWUA has yet to issue a statement as of this writing. (ANGEL F. JOSE) 

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