Lawyer: COWD acted without ‘due diligence’

Lawyer James Judith is accusing officials of the Cagayan de Oro Water District (COWD) of not exercising due diligence before signing a joint venture agreement with a new treated bulk water supplier to the detriment of consumers.

Judith said the COWD may have acted rashly when it entered into an agreement with MetroPac Water Investments Corporation (MetroPac) for the supply of 100,000 cubic meters per day without ascertaining where its new bulk water supplier will source its water.

Judith said COWD officials may have inadvertently allowed the formation of a water cartel that may eventually dictate the amount consumers would have to shell out every month for clean tap water.

Judith had earlier said that MetroPac and Rio Verde Water Consortium, Inc(RVWCI) may have violated Republic Act No. 10667 or the Philippine Competition Act signed into law by then President Benigno S. Aquino III on July 21, 2015.

The law prohibits “anti-competitive agreements, abuses of dominant positions, and mergers and acquisitions that limit, prevent, and restrict competition” which can be detrimental to consumers.

The law established the quasijudicial Philippine Competition Commission (PCC) which is tasked to ensure efficient and fair market competition among businesses engaged in trade, industry, and all commercial economic activities.

Judith said he, along with city councilors Teodulfo ‘Bong’ Lao, chairman of the City Council’s committee on public utilities, and committee members Eric Salcedo and Reuben Roa Daba, will file a complaint at the PCC regarding the alleged ‘anti-competitive’ against the two bulk water suppliers anytime soon.

An official of the COWD, meanwhile, yesterday, November 13, said the water utility still has “no idea” where MetroPac will source the 100,000 cubic meters per day