TO address ongoing rumors about the alleged complete acquisition of the Cagayan de Oro Water District (COWD) by the Local Water Utilities Administration (LWUA), a press briefing took place on Monday, May 20, 2024, at a local hotel here.
COWD Board of Director Gerry Caño addressed the media, strongly denying claims that LWUA had already taken over COWD and removed its General Manager Antonio Young along with the five-man board of directors on Friday, May 17, 2024.
"The report is not true; it's fake and irresponsible reporting," Caño stated.
He criticized the news for misleading the public and creating unnecessary confusion rather than clarifying the issue.
However, Caño admitted that he had received information that President Ferdinand Marcos Jr., himself had instructed LWUA to look into and address the issues surrounding COWD and its partnership with COBI, seeking both short and long-term solutions.
Former city councilor Eric Salcedo expressed his gratitude to President Marcos for helping the city of Cagayan de Oro communicate with Manny Pangilinan about the city's water crisis.
President Marcos, during a recent visit last week, disclosed negotiations with Pangilinan’s CDO Bulk Water for a temporary solution while pursuing a long-term resolution.
"Mr. Pangilinan has agreed to our request and is ready to meet with your mayor to resolve this issue, ensuring over 60,000 residents here have the necessary water supply," Marcos said in his message to the people of Cagayan de Oro.
Meanwhile, Caño clarified that, as of May 20, 2024, COWD had not received any formal communication from LWUA or any other agency regarding a full takeover of the company.
He stated that COWD would comply with turning over the water firm to LWUA if a formal communication was received but emphasized that there are many legal processes to consider and that the reported takeover could be legally contested.
"If they come here, we will accommodate them, but COWD will file a case against them (LWUA) too," Caño warned.
On May 17, the LWUA Board of Directors passed Resolution 34 for a full takeover of COWD as a result of the water supply crisis in Cagayan de Oro City.
In response to the takeover issue, Caño mentioned that COWD is prepared to take legal action.
He affirmed that COWD stands ready to face any legal challenges and dismissed reports that General Manager Antonio Young and the board of directors were already fired as unfounded rumors.
Caño reassured residents that water services would continue uninterrupted, thanks to a temporary restraining order extended by the court, despite the lack of communication from LWUA.
He expressed his discontent with the misleading news story and took the opportunity to correct the public narrative, emphasizing the importance of transparency in COWD's operations.
In an earlier briefing, Caño highlighted the significance of the press conference, considering it essential for maintaining COWD's commitment to transparency and addressing the concerns of Cagayan de Oro's residents regarding water supply and management issues amid the rumors.
Lawyer and city councilor James Judith also earlier pointed out COBI's substantial investment of P1.4 billion in Rio Verde in 2014, aimed at ensuring a reliable water supply for Cagayan de Oro, supported by a meticulously negotiated bulk water supply contract that received COWD board approval.
Judith said the city government's investigation revealed several troubling aspects of the Metro Pacific Water Incorporated (MWIC)-COBI and COWD agreement, raising doubts about the contract's integrity and the legality of MWIC-COBI's actions.
The investigation also revealed objections to automatic triennial water rate hikes, which were purportedly at odds with National Water Resources Board (NWRB) and LWUA regulations.
During the press briefing, questions related to the potability and reliability of Cagayan de Oro Water District's water supply by COBI were also discussed.
Caño highlighted COBI's failure to install essential systems mandated by their contract since 2018, such as a real-time water quality monitoring system vital for consumer protection and adherence to water output norms.
Additionally, the installation of an online treated water transmission power turbine, integral for the monitoring equipment's operation, has yet to be finalized at the bulk water plant.
He also asserted that MWIC and COBI, despite acting as a bulk water supplier, neither own a water treatment facility nor hold the requisite water rights, raising further questions about their operations.
