CEBU, Philippines — The Local Water Utilities Administration (LWUA) has issued a show cause order against Metro Cebu Water District (MCWD) General Manager Donoso for him to “do his job as management representative, not as representative of the regular Board of Directors,” while also emphasizing that the water utility firm should recognize the authority of the national government agency.
This, as Board of Directors (BOD) “Chairman” Jose Daluz, III announced in a press conference yesterday that MCWD officials and employees will observe as “status quo” until the legality of LWUA’s takeover last Friday is resolved.
This means that he would remain sa BOD chairman, with Miguelito Pato, Jodelyn Seno, Atty. Earl Bonachito, and Atty. Danilo Ortiz as members.
He said this after initially saying that he would be abiding by the LWUA’s “cease and desist” order.
LWUA Friday last week took over MCWD and installed an Interim BOD, which will continue for six months, while telling Daluz and the others to refrain from discharging their functions.
That day, the LWUA-appointed Interim Board issued Resolution No.1-24 directing the regular MCWD Board composed of Daluz, Pato, Seno, Bonachita, and Ortiz, to cease and desist from discharging their functions as MCWD Board for a period of six months.
The Interim Board also issued a written notice requiring all MCWD personnel to report to the Interim Board and follow its directives.
In a statement sent to The Freeman, LWUA said that an MCWD memorandum was circulated on the same date it took over misinforming the employees and the public that their takeover was merely an "intention" to intervene rather than a valid and legal order already implemented.
MCWD accordingly, also referred to the Regular MCWD BOD as "still the recognized and legitimate Board" despite the installation of the Interim Board.
“This said order was signed by Assistant GM Pia Mae Barido in the name of GM Edgar H. Donoso and misinformed the MCWD employees of the valid takeover by LWUA through its Interim Board,” read the LWUA statement.
It added that despite the cease and desist order, the MCWD management still allowed Daluz “unauthorized and personal use” of the MCWD Social Hall and facilities for the March 16 assembly of “Kilusang Pagbabago Pilipinas Cebu City Chapter," which is a political organization, and holding a meeting there on March 17.
“This is an outright violation of the already-implemented Board Resolution No.35 which includes in its provisions the full takeover of the facilities of MCWD by LWUA,” the LWUA said.
MCWD Office Order No.134-02-06, or the "Amended Guidelines on Social Hall Usage/Reservation,” states that the MCWD Social Hall shall not be used for any political conventions, meetings, or caucus.
The LWUA said the “usage by Atty. Jose Daluz of the MCWD Social Hall for a political assembly is a manifestation of his treatment of MCWD as his personal political support system.”
“The GM (Donoso) should not be allowing any unauthorized, personal use of the facilities of the MCWD nor should he be involved in any politicking or grandstanding that hampers the implementation of a lawful partial intervention of LWUA,” also said LWUA Chairman Ronnie Ong.
LWUA issued a show cause order to Donoso “for authorizing circulation of the memorandum containing false information, and allowing unauthorized personal, political use of the MCWD Social Hall and MCWD facilities.”
It also said that under the LWUA By-laws and the Manual of Corporate Governance, it is not the job of the general manager to represent the regular BOD but to represent the management by executing valid orders from LWUA, the regulating agency.
"Instead of the GM (Edgar Donoso) meddling with the affairs not that of the Management, he should do his job as GM instead by implementing valid orders from LWUA which has lawful jurisdiction over MCWD, " Ong said.
Following a request, the Cebu City Police Office deployed personnel at the MCWD building to secure the premises 24 hours a day to “prevent any concealment, destruction, and removal of various documents from MCWD.”
LWUA said in its statement that MCWD should recognize its power and authority and abide by the lawful partial intervention of their regulating agency — and this intervention includes takeover of all facilities, systems, and properties of the water district.
“MCWD is in default to its obligations to LWUA and that is a long-stated fact in LWUA Board Resolution No. 35 and reason for the partial intervention, while PD 198 even further reiterates LWUA’s power to takeover and operate the facilities and properties of any water district without the necessity of judicial process in the event of a default,” it said.
“Thus, MCWD has no grounds whatsoever not to abide by LWUA’s partial intervention accordingly,” it added.
Yesterday, however, Daluz said he changed his stance when MCWD employees sent a March 15 letter addressed to LWUA emphasizing its recognition of the current MCWD Board.
He said they question the legality of the LWUA takeover, arguing that Presidential Decree 198, “the law creating water districts, stipulates only one instance where LWUA can take over, which is in case of loan default.”
“I now make a stand nga mukuyog ko sa MCWD. I cannot abandon them,” he said, as he presided over a board meeting yesterday that was attended by Pato and Seno.
During the meeting, they passed a board resolution that gives provisional authority to Donoso to address the increase the deficit in the production water across the MCWD service area.
In particular, he said that while before the deficit was just 29,000 cubic meters per day (CMD) while currently, it now soared to 35,000 CMD.
“In fact, we will try to ask our suppliers, especially aning desalination, nga makaagas na sila within the bounds of law,” Daluz said.
They also approved a letter to be addressed to the Office of Government Corporate Counsel (OGCC), the corporate counsel of LWUA and MCWD, seeking assistance to render a legal opinion on the stance made by the MCWD management.
They likewise passed another resolution calling upon Cebu City Police Office Director Ireneo Dalogdog to clarify the rule of the local enforcement being deployed in MCWD building.
It was reported that the LWUA-installed Interim Board of Directors has requested local police assistance to secure the MCWD premises.
“MCWD further questions the insistence of Police Lt. Norvin Noceda to enter the building premises outside of office hours and while not in proper uniform. Noceda's attire of shorts, a T-shirt, and slippers during his visit was deemed inappropriate by MCWD,” Daluz said.
He said that he has now refused to enter the MCWD building to avoid “agitation” over the presence of the police.
“Ang ako lang sad appeal sa mga police, nganong nagpagamit man mo nganha for what purpose?” he said. — /RHM (FREEMAN)