Sun.Star Cagayan de Oro

Lawyer: COWD acted without ‘due diligence’

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that it has agreed to supply COWD.

COWD general manager Engineer Rachel Beja said she sent a letter last October 31, 2017 to MetroPac three months after both signed a joint venture agreement because the COWD needs to know whether the firm would construct its own treatment plant, purchase bulk water from an existing water treatment plant, or purchase RVWCI.

Beja said MetroPac, as agreed, should have began supplying bulk water 2 months after the agreement was signed.

The joint venture agreement was signed August 15, 2017.

“So nagsulat mi kung asa sa 3 options ang iyang gamiton sa MetroPac para maka-supply kay 2 months mi nagsign sa agreement, magsupply na baya sila, so proper time na makabalo ang water district kung asa magkuha ug tubig kay wala may official communicat­ion kung asa magkuha gyud (We already wrote to them if which among the 3 options they would undertake to supply water, because supposedly 2 months after the agreement was signed, they shall start supplying. And there has been no official communicat­ion as to where they would source it),” she said.

Beja, however, relayed that months before MetroPac submitted its unsolicite­d proposal to become the new bulk water supplier of the facility in 2015, both firms had already entered into an operations and management contract.

“The operations and management contract was made even before the joint venture agreement, busa siguro nakig-deal sa amo kay secured na ang supply (that is why maybe they made a deal with us because supply is already secured),” she said.

Beja said, neither the Rio Verde and MetroPac informed them of such undertakin­g.

“Kung ako pangutan-on, dapat mainform mi, kay sila baya karon, ang Rio Verde baya ang ga-supply sa amo (We should have been informed because they are our supplier right now),” she said.

However, Beja said it is also difficult to ask the informatio­n from RVWCI especially with the pending resolution of the nullificat­ion case between COWD and RVWCI.

Beja said it will not matter if MetroPac will source its bulk water requiremen­t from RVWCI since it is not prohibited under the joint agreement signed between the water district and MetroPac.

“Wala man pud giingon didto nga dapat sa Rio Verde siya mukuha or dapat dili siya mukuha sa Rio Verde so pwede ra gyud siya bisan asa mukuha (It was not stipulated that they should or should not source it from Rio Verde). Wala nami mabuhat kung muingon sila nga sa Rio Verde mag-supply kay gi-allow man sa kontrata sa water district (We cannot do anything if MetroPac will say they will source it from Rio Verde because it is allowed by the contract),” she added.

Before entering into the joint venture agreement, Beja said a committee was created by the COWD board of directors to study the unsolicite­d proposal submitted by MetroPac in 2015.

The provisions of the contract, she said, was approved by the board.

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