MCWD told: Contracts are public documents

CEBU, Philippines — The Cebu City Legal Office (CLO) argued that contracts entered into by the Metro Cebu Water District (MCWD) are public documents.

This, amid a request of the MCWD to extend the deadline imposed by the Cebu City Council to the water utility to provide the requested documents.

The council, in its recent session, noted the CLO's opinion, which the legislative body had asked earlier, following the MCWD’s letter seeking for an extension on the submission of copies of contracts to the City Government. The council had passed a resolution requesting for the documents from MCWD.

Councilor Jocelyn Pesquera, majority floor leader, reminded MCWD to submit all the requested documents and contracts with various water suppliers to the City Council not later than today,  May 30.

In its opinion, the CLO said that upon assessing the letter, there may be an implication that the requested documents could be “withheld or delayed on the basis of confidentiality,” as stipulated or possibly covered under the Data Privacy Act of 2012 (Republic Act 10173).

“An issue arises now whether or not the MCWD may validly withhold the requested contracts on the grounds of confidentiality protection under the Data Privacy Act of 2012,” said the CLO. “It is this Office's opinion that the requested contracts are not."

The CLO pointed out that the public has a right to information on matters of public concern, as stipulated under the 1987 Philippine Constitution.

Specifically, the legal office cited provisions under Article III, Section 7 of the 1987 Constitution, which mandate the recognition of the people’s right to access public information.

It is in this provision, the CLO said that the people,  in this case, the City Council, have the right to request access to the contracts entered into by MCWD considering that these relate to matters of public concern. The CLO enumerated factors, such as the contracts involving public funds and public resources.

"Further, the act of contracting with private water suppliers is an official act of a government entity,” the legal office said.

Locally, the CLO added that this national policy is backed by Executive Order 2 titled, “Operationalizing in the Executive Branch the People's Constitutional Right to Information and the State Policies to Full Public Disclosure and Transparency in the Public Service and Providing Guidelines Therefor."

Another factor stated by the CLO is that if contracts are notarized, these are considered public documents. This is supported by Section 19, Rule 132 of the Revised Rules on Evidence: “notarized documents, including contracts, which are expressly considered public documents.”

The CLO also pointed out that contracts are not to be considered confidential under the Data Privacy Act (DPA). It said that while the DPA protects information of natural persons, it cannot be imposed on information relating to juridical entities or official transactions involving public funds.

“The DPA cannot be invoked to restrict access to government contracts unless they contain sensitive personal data that outweighs the public's right to know,” the CLO said.

Since the contracts entered into by MCWD do not contained personal information, CLO said, the protection afforded by the DPA does not apply.

“These contracts are public documents, notarized, and involving public interest, and are, thus, presumed open to scrutiny by oversight bodies such as the Sangguniang Panlungsod,” said the legal office.

The opinion was signed by handling lawyer, Atty. Joy Ivee Ong, and approved by City Legal Officer Santiago Ortiz.

On Feb. 26, 2025, during the council's  executive session, Councilor and now Mayor-elect Nestor Archival asked the MCWD to submit copies of the documents,  such as contract of the Lusaran-Lahug Bulk Water Supply; contract of the Carmen Bulk Water Supply with Cebu Manila Water Development Inc.; and contract of the Cebu North Bulk Water Supply with Manila Water Philippine Ventures Inc.

The council also requested documents on MCWD’s manifestation that it cannot sustain operations with the price agreed upon in the contract, as well as the Local Water Utilities Administration approval for MCWD to pass on the Purchased Water Adjustment (PWA) and Power Cost Adjustment (PCA) to consumers.

In response, the MCWD requested an extension of the deadline and was granted up to March 30.

However, the MCWD in a letter dated March 30, it stated that upon instructions from the Board of Directors, the water utility requested for another 30-day extension.

The council then passed a resolution granting MCWD a 15-day extension instead of the requested 30 days.

"However, although said resolution is dated April 2, 2025, it was transmitted to MCWD only on April 16, 2025, thus, we interpret the new deadline as April 30, 2025,” the MCWD noted in their letter, upon which the CLO opinion is based.

In the same letter, the MCWD informed the council that it does not have the consent of their bulk water suppliers — Manila Water Philippine Ventures and JE Hydro — to submit the requested contracts.

The MCWD, however, said it is still requesting approval from the respective managements and boards.

“As soon as we get their agreement, we will update you on the matter,” the letter, signed by MCWD General Manager Edgar Donoso, said. JG (CEBU NEWS)