CAGAYAN DE ORO, Philippines – A power struggle over Cagayan de Oro’s water supply took center stage as the city’s legislature sharply criticized the Local Water Utilities Administration for extending for the second time its takeover of the local water district.
Accusations of overreach and abuse of authority surfaced, with city hall officials decrying the move as a blatant disregard for local governance.
The long drawn-out conflict, which intensified again in late February, has left residents and water district employees caught in the crossfire, with clashing administrators claiming legitimacy.
The city council on Monday, March 3, passed Resolution No. 2025-1016, condemning LWUA’s six-month extension of control over the Cagayan de Oro Water District, calling it “tantamount to grave abuse of authority.”
The city legislature also called on the Office of the Government Corporate Counsel to intervene and urged a regional court to expedite a decision on a prohibition case filed against LWUA.
Local officials expressed hope that the court’s intervention would lead to a swift resolution, restoring clarity in the water district’s leadership and operations.
The city council also proposed a conference among stakeholders to resolve the dispute.
Councilor Jose Abbu Jr. pointed out that the local government has no jurisdiction over the management and operations of the COWD beyond appointing board members, including determining who can legitimately sit on the board amid the COWD-LWUA dispute.
The controversy stemmed from LWUA’s decision to extend its full control of COWD until August 30, following its initial six-month takeover beginning in mid-2024. The first extension took place last December.
The intervention resulted from a P400-million debt dispute between COWD and its primary supplier, Cagayan de Oro Bulk Water Incorporated, which led to supply disconnections affecting several barangays.
LWUA took control of the COWD operations supposedly to tighten oversight of the utility’s financial and supply obligations, and fix irregularities affecting consumers.
In May 2024, LWUA defended the takeover as a necessary move to address the city’s water crisis. The agency argued it needed time to craft both immediate and long-term solutions while rolling out a program to curb massive water losses.
Before the 2024 takeover, state auditors have flagged COWD for wasting more than half of its water supply through leaking pipes and illegal connections. The district’s non-revenue water losses even surpassed the bulk supply provided by the private supplier that delivers nearly half of the city’s treated water.
With the latest extension, LWUA-appointed officials, including interim general manager Fermin Jarales and a temporary board of directors, remain in control. However, the move has been challenged by the sidelined members of the COWD board, who appointed assistant general manager Edna Najeal as acting general manager.
Despite LWUA’s non-recognition of her appointment, Najeal assumed office on Monday, citing the absence of a certified true copy of the LWUA board resolution about the extension. She said they didn’t receive any.
“If all of the documents are provided, then we can talk again,” Najeal told reporters.
Jarales, however, said he has a certificate from LWUA Board of Trustees’ corporate secretary Julius Paolo Basa regarding the extension.
Jarales also told reporters that he received a copy of an audit observation memorandum from the Commission on Audit questioning his appointment and the experts he hired for technical work. He said they would comply with COA’s requirements.
The leadership dispute in the COWD prompted police and military deployment outside the water district’s office on Corrales Avenue to maintain order as both sides sought to assert control.
In a statement, LWUA maintained its authority over COWD, and asserted, “In response to the crisis, LWUA has appointed an interim board to oversee the operations of COWD. This board has the full legal authority to manage the water district. The recent attempt by Engr. Najeal to assume the role of acting general manager is not valid.” – Rappler.com