Daluz: Decision of 2 board members was “expected”

CEBU, Philippines — Atty. Jose "Joey" Daluz III yesterday said he respects the stance of Board of Directors (BOD) members Atty. Earl Bunachita and Atty. Danilo Ortiz, who said they recognize retired general Melquiades Feleciano and not him as the rightful Metropolitan Cebu Water District (MCWD) BOD chairman.

He made the statement during the weekly Tapok-Tapok Media Forum organized by the Cebu Breakfast Club, Inc. at Mariner's Court, Pier 1, Cebu City, in reaction to The Freeman's banner story.

Daluz said Bunachita and Ortiz's response to his show-cause order, declaring their support for Feleciano, whom Mayor Michael Rama appointed along with two others last Oct. 31, was “expected.”

In an interview yesterday, Daluz said he issued the show-cause order for Bunachita and Ortiz to explain their side on their absences from their board meetings.

"So, expected na na nako. Ang akoa lang, that they would put it on record nga kahibaw ko na daan nga dili na gyud sila manunga so that we will do some actions,” he said.

Daluz said that the absence of Ortiz and Bonachita from their board meetings is a deprivation of the voices they represent – the education sector for Bonachita and civic sector for Ortiz.

Last Oct. 31, Rama named Feliciano (as chairman), Atty. Aristotle Batuhan, and businessman Nelson Yuballos to the BOD, replacing Daluz, Miguelito Pato, and Jodelyn Seno.

Daluz, though, declined to step down, resulting in two sets of MCWD BODs that each conduct their own board meetings.

In his Nov. 20 letter, Daluz directed Ortiz and Bonachita to explain in writing “why no disciplinary action should be instituted against them” for their absences from the board meetings and their alleged “unauthorized meetings” at the MCWD Boardroom with Feliciano, Batuhan, and Yuballos.

Daluz cited Bunachita and Ortiz's absences from their Nov. 6 and 13 BOD meetings and the two attending the BOD meetings that Feliciano called on Nov. 7 and 17.

Last Monday, Dec. 4, Bonachita and Ortiz sent a six-page reply stating that they find it “intriguing” for Daluz to mention disciplinary action when there is no “statutory basis” for MCWD BOD chairman or “remove, much less replace, any sitting director”.

“We believe the authority of the Mayor to remove and replace directors is beyond cavil, as even you yourself had stridently espoused and benefited from such power when you were appointed together with four others by the late Mayor Edgar Labella to replace the directors that he had removed, “they also said.

Bunachita and Ortiz likewise argued that the mayor’s power to execute such orders was affirmed in the ruling of Branch 17 of the Regional Trial Court of Cebu upholding Labella's removal from the MCWD BOD of Augustus G. Pe, Jr.; and lawyers Ralph J. Sevilla and Cecilia J. Adlawan.

Yesterday, Daluz said comparing the two circumstances is “wrong,” saying that Pe,  Sevilla, and Adlawan were not removed from their posts without  approval of the Local Water Utilities Administration (LWUA).

“In fact, LWUA came up with an interim board, so that was different. Ang amoang appointment also, we were not appointed by (former mayor) Edgardo Labella all on his own, he waited for the solicitation of LWUA, then the LWUA wrote to mayor Labella for the solicitation of the nominees from the board,” Daluz said.

He said they did not join the board until the LWUA confirmation arrived, while Rama's act of replacing them was against the law.

Among the concerns raised by Ortiz and Bonachita that motivated their refusal to be part of the Daluz BOD was the sudden implementation of higher water rates for industrial and commercial consumers.

In response, Daluz said the move was made after the BOD found out that there is a single water rate for industrial, commercial, and residential consumers.

“I agree with the phrase that water is life but that is only applicable for residential (users). For the industrial and commercial (users), that is just an operating expense. So when we found that there is a single rate for all consumers, I asked the management, why is this, then they are not on the same level,” he said.

He said the LWUA already provided in 2000 yet a formula for the water rates in all sectors, which was not implemented at that time because MCWD asked for an exception so MCWD can compete with commercial suppliers during that time.

“But 20 years after, kato ilang reasoning sa MCWD, dili nato mo-apply ug wala naka-solve sa problema sa MCWD, where all the bulk suppliers are benefiting from this. So, niingon ko, nga we have to remove that exception and we have to apply the LWUA rate," Daluz said.

On the alleged “aggressive push” he made to approve three desalination bulk water projects in Marigondon, Lapu-Lapu City; Canjulao, Lapu-Lapu City; and Inayawan, Cebu City, he said this is “false accusation”.

“Because that was presented to the board, unsay may tan-aw nila. I can influence the board? Unsa may pagtan-aw nila nako? False kayo na ilang accusation nako.... Niagi man na og bidding process,” he said.

Daluz. however, confirmed that the projects would require MCWD to pay at least P66.8 billion for over 29 years starting in 2025, saying that this equates to a sufficient water supply for Cebu. – /RHM (FREEMAN)