LWUA to Loot: Rural waterworks need not get business permit

CEBU, Philippines - Local Water Utilities Administration (LWUA) Administrator Daniel Landingin has reminded Daanbantayan town Mayor Ma. Luisa Loot of an existing law that exempts rural waterworks and sanitation associations like the Tapilon Rural Waterworks from paying business permits.

Landingin’s letter to Loot was his response to her query about the operations of the Tapilon Rural Waterworks System Association (TARWASA) in barangay Tapilon, which did not secure a permit from the municipality.

Loot’s letter to Lan-dingin asked clarification on whether local government units can collect business permits from the Rural Waterworks and Sanitation Associations (RWSA). Her letter was dated April 19, 2011 but even before Landingin could make a reply, Loot on that same day issued a closure order to TARWASA for operating without business permit.

Loot claimed that aside from the failure of TARWASA officials to secure business permit, the TARWASA did not have a certificate of franchise from the LWUA and certificate of public convenience or franchise from the National Water Resources Board (NWRB).

Landingin told Loot Section 33 (b) of Executive Order 869 issued in February 2, 1983 which states that “The RWSAs shall be exempt from all national government, local government and municipal taxes and fees, including any franchise filing, recordation, license or permit fees or taxes.”

There is a case pending before the Regional Trial Court (RTC) in Bogo City because TARWASA officials headed by their chairman Claro Benatiro sought the help of the court when Loot shut down their waterworks system.

“It is our opinion that RWSA are exempt from the requirement of securing a mayor’s permit, but RWSA are required to secure water permit from the National Water Resources Board in accordance with the provisions of the Water Code,” said Landingin.

The LWUA official, however, did not make further comments about the alleged illegality of the operation of the water system in Tapilon, Daanbantayan because of the pending case.

TARWASA sought the help of President Benigno Simeon Aquino III to intervene and to give final solution to their conflict with Mayor Loot.

Benatiro claimed that despite of the court-issued order directing Loot and the municipality of Daanbantayan to maintain a status quo, she continued to defy the order and refused to return the operation of their waterworks system to TARWASA officials.

He said Loot entrusted the waterworks system to the officials of barangay Tapilon because they are her political supporters who, Benatiro alleged, have not been paying their monthly water bills since the start of the controversy in 2009. — (FREEMAN)