Court’s cease and desist order vs LWUA, moral and legal victory of people: Klarex Uy

Mayor Klarex Uy who stood for the people and risked the ire of big businesses in the water industry is vindicated by the ruling today of the Regional Trial Court hearing the prohibition case against the take over by the Local Water Utilities Administration (LWUA) on the Cagayan de Oro City Water District (COWD).
The water consumers of Cagayan de Oro had found a strong ally in Mayor Rolando “Klarex” Uy who said no against unjust increases in the city’s water rates, and instead ordered the review of the scandalous contract entered between the COWD and the Cagayan de Oro Bulkwater Inc. (Cobi) for bulkwater supply in 2017. The contract which stipulated among others automatic escalation of bulkwater prices had the imprimatur of former Mayor Oscar S. Moreno. Moreno and his cohorts refused to disclose the contents of this contract, despite requests from the City Council, then headed by Vice Mayor Kikang Uy.
A review on the COWD-Cobi bulkwater supply agreement ordered by Mayor Klarex Uy found the contract to contain onerous provisions, resulting in calls for its reformation, and even outright termination of the contract.
Despite clear disadvantage to water consumers, with 17,000 water consumers signing the petition to stop the LWUA from intervening, among others, 1st district Cong. Lordan Suan called on, and supported the take over by LWUA 10 months ago.
“The people should be reminded of this. Of how both Suan and Moreno took the convenient stand of supporting big business even if it meant people would be burdened by high water rates and bad quality of services from COWD,” said BenCyrus Ellorin of Kauban Ta Uy movement.
The automatic escalation of water rates resulted in the collection by Cobi of supposed debts amounting to P489 million last year. Refusal of the COWD to honor such debt, mostly levied during the pandemic, resulted in the cutting of water supply for a few hours in May last year. Bulkwater supply from Cobi to COWD was restored when the court issued a TRO, which eventually became a provisional injunction until the ruling on the merits of the Prohibition case.
The 36-page decision penned by RTC branch 41 Judge Jeoffre Acebido dated April 8, 2025 said, “Respondent Local Water Utilities Administration, its Administrator, Officers, Board of Trustees, agents, representatives, including its appointed interim Board of Directors and Interim General Manager to the Cagayan de Oro Water District, and all persons acting for, together with, or in LWUA’s behalf, or upon its instructions or authority pursuant to LWUA BOT Resolution 34, Series of 2024 are hereby ordered to cease and desist from its full intervention in and takeover of the policy-making functions, operations, and management of Cagayan de Oro Water District, as well as from performing any other acts that would have similar effects,”
This decision from the court would pave way for the Board of Directors who are appointed by Mayor Klarex Uy to function and address pressing issues, including the way forward in as far as the 2017 COWD and Cobi contract and whether the debt levied by Cobi which is majority owned by the Metro Pacific Waters is valid or not. The legitimate BOD would also address the problem of water wastage or non-revenue water which has beleaguered the operations of the country’s first water district.