MCWD's reply: They are not delinquent!

The Philippine Star came up with an alarming report that Pres. Benigno “PNoy” Aquino, III’s popularity which already dipped down to 64%, has now dropped into the precipice hitting an embarrassing low of 46%. This is one area that PNoy can no longer blame the previous dispensation. Blame on this is squarely on his head and his government!

We can name a host of reasons why PNoy’s popularity has taken a nosedive. But perhaps the best report came only yesterday when the Global Integrity Report for 2010 was released to the public that showed the Philippine Classification at 57 or dubbed “weak” downgraded from our 2008 score of 71 considered “moderate.” That clearly shows that the Philippines have retrogressed under Pres. PNoy Aquino.

We already warned the Aquino administration to change course now, otherwise just like the S.S. Titanic, we will hit the iceberg and sink, something we Filipinos do not wish to happen to our country. PNoy must implement political reforms and the only direction towards this is by calling a Constitutional Convention (con-con) before it is too late.

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Last April 27th, we wrote in this corner an article questioning the Metropolitan Cebu Water District (MCWD) because of its non-payment or delinquency in its real estate taxes. Well, finally, MCWD General Manager Armando Paredes replied to that article and so here is his letter in full.

Dear Mr. Avila,

We would like to thank you for bringing, through your widely-read column, the public’s attention to the Metropolitan Cebu Water District’s (MCWD) non-payment of real property taxes as it was included in the list of delinquent taxpayers which the Cebu City Treasurer’s Office published in local newspapers. We would also like to thank you for mentioning in your April 27, 2011 article that you hope MCWD will give an early and honest reply to the issue. We hope the public, especially our consumers, would understand the matter as soon as they read our reply in your column.

The Cebu City Government owes the Water District a considerable amount in water fees. As of February 2010, MCWD’s collectibles from the Cebu City Government have reached P80,166,953.92. MCWD, for its part, owes the City Government P63,084,173.54 in real property taxes after paying P1,299,914.41 last March 31, 2011 as partial payment for its tax dues and to show its willingness to pay taxes. You are correct in saying that the board of directors and management of MCWD believe in good governance.

In a March 21, 2011-letter to OIC-City Treasurer Ofelia Oliva, MCWD asked for enough time to reconcile the records of the properties in question since MCWD, with its thrust to protect government funds, is still verifying the status, ownership and location, among others, of these properties. Although it is willing to settle its dues, MCWD also wants to enforce its responsibility to collect the City Government’s dues to protect the Water District’s interest.

After the reconciliation of the records, MCWD hopes for an exchange of cheques with the City Government to settle the issue once and for all. In a display of goodwill among two government entities, MCWD and the Cebu City Government had an exchange of cheques in 1999 for MCWD’s in lieu share for the acquisition of the Water District’s assets while the City Government paid its water fees to MCWD.

Under Presidential Decree 198, the law creating water districts, “As an incident to the acquisition of the existing water system of a city, municipality, or province, a district may enter into a contract to pay in lieu of taxes on such utility plant, an annual amount not exceeding three percent (3%) of the district’s gross receipts from water sales in any year.”

As for the issue on water supply, much as it would like to prioritize the needs of all Cebu City residents, MCWD is also mandated to continually improve its services in its service area, which covers the cities of Cebu, Mandaue, Lapu-Lapu, Talisay and the municipalities of Cordova, Consolacion, Liloan and Compostela. MCWD continues to grow and serve better its consumers in Metro Cebu, including Cebu City. It has continually updated the public, through press releases and media events, of its ongoing efforts to improve the water supply in these areas.

Engr. Armando H. Paredes General Manager 

Thanks for this very thorough reply to our queries last April 27th. One thing is crystal clear that in the end, it is the City of Cebu who owes MCWD and I dare say that the Treasurer’s Report should not have included MCWD in its master list of delinquent realty taxpayers. At the very least, if they still insist to put on record that MCWD was delinquent, then they should have put an asterisk or a note that would indicate that Cebu City was offsetting its debt against this delinquency, at least to set the record right. Thanks GM Paredes for this very honest reply. MCWD is not delinquent in my book!

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