Capitol to sue execs, water supplier

CEBU, Philippines —  Cebu provincial government is set to file a complaint against the Manila Water Consortium Inc. (MWCI) and some provincial officials before the Office of the Ombudsman in the Visayas.

In a report of Sugbo News, the Capitol’s media arm, the complaint stems from the alleged anomalous transactions in the implementation of the joint investment agreement (JIA) entered into between the province and MWCI for the bulk water supply in Metro Cebu.

The provincial government observed changes on the terms and references of the agreement.

These are the increase of project cost or capital expenditure (CAPEX) from P702 million to over P1.003 billion; increase on the tariff rate from P13.95 per cubic meter to P24.29 per cubic meter; decrease of project internal rate of return (PIRR) from 19.29% to 12.30%; non-remittance to the Province of its receivables and plowing back of the earned revenues to the CAPEX and JICO (Joint Investment Company).

In a press conference, Governor Gwendolyn Garcia said the complaint has already been prepared against the private company and some officials in the province.

"The complaint has already been prepared. I am just reviewing it. And we, at the proper time will call a press conference to inform the media that we shall have filed this complaint in the office of the Ombudsman. And certainly, we will include some officials, not all. We will include officials of Manila Water," said Garcia.

"We just want to single out those officials which we believe had prior knowledge and should have protected the interest of the province of Cebu and not their own political interest. As well as their own connections with Manila Water," she added.

The Capitol will push through with the complaint against the company for ignoring the opportunity given to rectify its violations.

  "Based on that, we are preparing a case to be filed against those persons that we believe should be directly responsible since they knew the history and had at that time the political influence to brazenly violate the terms of a joint investment agreement which I had signed for which at that time I had the authority to sign given by the provincial board presided by a person who knew the entire history of this whole proposal," said Garcia.

To recall, Capitol terminated its agreement with the MWCI after discovering the said violations.

The agreement was for the construction and development of bulk water by tapping surface water from Luyang River in Carmen town, Northern Cebu to supply to Metro Cebu.

Apart from the termination of contract, the company was not also allowed by the PB and even the municipal council of Carmen to dig and source out water from the two deep wells which they supplied to the Metro Cebu Water District (MCWD).

In March 2012, the province of Cebu entered into a JIA with Manila Water for the construction and development of water supply facilities.

The JIA led to the creation of the Cebu Manila Water Development Inc. (CMWDI) wherein MWCI officials sat as board of directors.  — KQD (FREEMAN)