Friday, February 17, 2006

Editorial – February 1 - 18, 2006

Will MKWD Run Dry?
Will Metro Kalibo Water District (MKWD) Run Dry? It will, when there is El Niño, when all trees are cut, when sea water pollutes the underground water and if worse disaster happens.
But No! For the water concessionaires of Banga, Balete, New Washington and Kalibo will not allow it to happen. Anybody who attempts to destroy MKWD will better watch out for the foolishness it may inflict on MKWD.
What the water concessionaires vehemently object is the unreasonableness of the water rate increase from P130 for the first 10 cubic meters to P170 effective in the March 2006 billing and from P170 for the first 10 cubic meters to P205 effective in the March 2007 billing. These rates will increase as the volume of consumption increases, size of pipe and type of consumer’s such as commercial and industrial. At P205 minimum rate, MKWD will be the most expensive water of the water districts in the Philippines.
But will MKWD run dry with the present rates? The water concessionaires strongly believed it will not. It is only its Board of Directors and Management who love to increase the rate. They are bend to extract more money from the already dehydrated concessionaires’ hard earned money. The MKWD will do it, to extract more money.
So the water concessionaires who are hard pressed filed Special and Action No. 7700 for Certiorari With Preliminary Injunction with the Regional Trial Court, Kalibo, Aklan. The petition was filed on February 13, 2006. It is now pending with the RTC. The water concessionaires “prayed to the honorable court that after trial, the decision of the respondent Board be declared null and void. . . that pending trial a writ of preliminary injunction shall be issued directing the respondent water district to desist from implementing the contested water rates, and after trial, the injunction shall be made permanent.”
According to the petition, the MKWD BOD “acted in excess of its jurisdiction or with grave abuse of discretion amounting to lack or excess of jurisdiction.”
MKWD cited in its reason to increase rate the water rate in Boracay, Island. But according to the water concessionaires, the minimum charge being charged by Malay Water District is under litigation in court. Moreover, the cost of delivery of water in Boracay entails more expenses as under water transmission pipes have to be established unlike pipes being laid on land.
As the MKWD admitted, the annual net income of MKWD was P2.611 million in year 2004. If MKWD netted a huge amount with the P130 minimum charge, why does MKWD ask for more? It is not fit to say, as due to insatiable greed for MKWD is a government owned and controlled corporation? Maybe to increase salary, allowances, and other imaginable benefits.
If MKWD lacked money, it should not have expanded its operation to Balete. But it did without additional rate increase or budget but with what were available. Why increase the rate?
Gen. Manager Renato Albar, in response to invitation of the Sangguniang Bayan of Kalibo attended its session. He was asked to justify the rate increase on February 9, 2006 and was requested to submit its financial statement to see if MKWD Fund is running low. Albar declined to provide any financial statement because “the Commission on Audit” has not audited its financial report. “He needs to request permission from the office of the Government Corporate Council,” Albar added.
Similarly, Manager Albar appeared in the Sangguniang Panlalawigan of Aklan on February 8, 2006. He was asked to justify the rate increases. He also refused to provide copies to the members of its financial report to find out if MKWD is really in dire need of additional income. The same answer: COA has still to audit its financial report and there is the need to get OGCC permission.
Who really owns MKWD? Why can the Local Government Units of Kalibo and Aklan not be given the courtesy of looking at the financial status of the MKWD? Mr. Albar and the BOD of MKWD must give access to the MKWD performance, after all MKWD is a public corporation. Even unedited report will do for the information of the Aklanons.
Mr. Albar and the present BOD members will step out of MKWD sooner, but MKWD must stay to continue servicing its concessionaires. MKWD must yield to the request of the people for which it was organized to serve. MKWD has no reason to increase its present rates for with the present rates, it has net gain of P2.611 millions in 2004 operation. /MP

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