CH negotiates with MCWD for continued use of building

MANILA, Philippines —  The Cebu City government is currently in negotiation with the Metro Cebu Water District (MCWD) for the continued use of the building occupied by the City Hall Satellite Offices.

Acting Mayor Raymond Alvin Garcia said they would need the MCWD-owned property until they are able to find relocation for the offices occupying the building.

The building is currently occupied by the Task Force Gubat sa Baha, City Environment and Natural Resources Office, Bantay Dagat Commission, Division for the Welfare of the Urban Poor, City Hospitalization Assistance Management Program, and several others.

The Commission on Audit (COA) recently flagged the city government’s spending P5-million for the renovation of the American-period building located next to the MCWD main building without a formal lease agreement with the MCWD.

According to Garcia, the MCWD management has agreed in principle the city’s continued use of the property.

“We are now talking to MCWD on a contract to execute for one year. Akong initial discussion with MC(WD) was that we would like to use the premises for another year… nisugot man si (Board of Directors) Chairman (Joey) Daluz. Ang iyaha lang is with a contract,” said Garcia.

In its annual audit report, the COA recommended for the city to have a dialogue with MCWD and settle the disagreements over the monthly rental rate by using the formula stipulated in the Government Procurement Reform Act.

“Our legal (team) and legal of MC(WD) are looking into that (contract and might include the previous years’ nga wala sila (MCWD) bayari,” said Garcia.

The state auditors noted that the repair was completed in 2023 and was immediately occupied by the city government for some of its offices without a formal contract due to disagreement in the rental cost.

Accordingly, Cebu City only offered to pay P200,000 per month as rental but the MCWD wanted P700,000 a month.

“Per accounting record, there is no payment made yet pertaining to this repair. Anyhow, the gist of this audit observation which constitutes the management deficiency is the fact of repair sans a formal contract,” it added.

Earlier, the MCWD gave the city government an ultimatum to vacate the property. However, the city government refused to vacate the property claiming “lawful possession of the property” as basis among others.

In a letter addressed to Edgar Donoso, MCWD’s General Manager dated February 20, 2024, the Cebu City government emphasized that they will not be heeding the demand. (CEBU NEWS)