Court approves privatization of La Union water firm

SAN FERNANDO CITY, La Union — The Regional Trial Court here issued a decision affirming the dissolution of the Metro La Union Water District (MLUWD), including the termination of all the six members of the board of directors which will pave the way for its privatization.

In his 15-page decision on Sept. 22, 2005, Judge Adolfo Alagar of Branch 66 concluded that the transfer of MLUWD operations to the provincial government of La Union, which had proposed its privatization, is in the best interest of the general public.

However, lawyer Ferdinand Concubierta, one of the counsels of MLUWD employees opposing the privatization, branded the decision as anomalous because there was no public hearing and pre-trial held.

Judges Victor Viloria and Antonio Carbonnel, who previously handled the case, had inhibited themselves. It was reshuffled early this year to the sala of Alagar.

"We will file a motion for reconsideration to the same court (of Alagar) to clarify the decision," Concubierta told The STAR in a phone interview. He received the order on Sept. 28.

On the other hand, Dr. Geoffrey Tilan, La Union provincial administrator, told The STAR that lawyers of the provincial government will also contest Alagar’s decision.

Tilan said their counsels will file a motion for reconsideration to clarify the decision. They alleged that Alagar’s decision was based only on pleadings and documents submitted by both parties to the first two judges who handled the case.

The legal battle between the provincial government and MLUWD employees started last year when the board of directors passed a resolution "conditionally dissolving" the MLUWD to allow the provincial government to take corporate control of the water firm.

However, the MLUWD employees challenged the decision of the board and the authority of the provincial government to take over the MLUWD by filing a petition seeking the nullification of the board resolution and another case questioning the Sangguniang Panlalawigan resolution granting authority to Gov. Victor Ortega to take over and control the management and operation of the water firm.