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Councilors slam COWD rate hike


COUNCILORS yesterday lashed out at the Cagayan de Oro Water District (COWD) even as they threatened to sue it for allegedly increasing water rates in the city despite a pending court case. Councilor Alvin Calingin said it was time for local officials "to teach these people [in the COWD] a lesson not to play around with this government and its laws." Calingin said COWD could be liable for "grand estafa" if proven that it has collected huge amounts from the city's water consumers. "This is like estafa. At the proper time, I will file a resolution instructing our legal office to file an estafa case against COWD," said Calingin. He warned that COWD officials could be charged with large-scale estafa, a nonbailable offense, if the facility is found to have collected at least P50 million.

In a special report, Councilor Alden Bacal said he received numerous complaints about what he called as "exorbitant rates" imposed by the COWD. Bacal said it was ironic that consumers were charged more given the water crisis that hit the city last December. He said there was no tap water in many areas of the city for at least 20 days after the December floods. Bacal said the city council had tasked the City Legal Office to sue COWD in an effort to stop it from effecting the rate increases. The rate increases, Bacal said, were effected despite a certiorari order from the 38th branch of the Regional Trial Court. He showed the city council three water bills which suggested that the facility started charging the new minimum rate of P218.40 for households. The minimum rate before, he said, was P168 for every 10 cubic meters. "They really implemented the increase as shown in the billings. They should not implement an increase while this is under litigation," he said.

On Sept. 1, 2011, COWD implemented 25 percent of its proposed 30-percent increase while the remaining five percent of the rate hike took effect last December, the month the city plunged into a water crisis as a result of the Typhoon Sendong devastation.

He said the regional court issued a temporary restraining order against the COWD rate increases and subsequently, city hall posted a bond and sought a preliminary injunction. "We're waiting for the writ of injunction," Bacal said. "The court has already warned the COWD management that they cannot impose an increase while the case is still pending in court. But despite the warning, they implemented the increase for reasons that they have already programmed their computer system. Ayha na kuno i-deduct kung magbayad ang consumer," he said. Councilor Edgar Cabanlas said a "temporary restraining order is effective for only 20 days" and after that, "it automatically dissolves."

"But when the city government posted a bond for an injunction- this is enforced in the duration of the case or until the COWD rate hike is still under litigation," Cabanlas said. Councilor Adrian Barba said his water bills showed that, indeed, the COWD increased its rates. "There was no reading for the month of December and yet I was surprised to see that my water bill rose to more than a thousand pesos. In the last five years, our household only had an average monthly billing of P600 to 800," said Barba.

Councilor Ramon Tabor said the receipts and the testimony of Barba were "clear evidence" that COWD had indeed effected the 30- percent rate increase despite city hall's opposition and the lawsuit. Tabor said the COWD management can be held in contempt of court. "We will establish if they there was a willfull implementation of the increase. I, for one, condemn the increase. I would suggest that the committee on public utilities conduct a hearing," Tabor said.

By CONG CORRALES and LITO RULONA, Correspondents




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