LWUA takes over management of Basey Water District until October 15, 2011

By CHITO DELA TORRE, delatorrechito@yahoo.com
October 21, 2010

The woes of the water concessionaires of Basey, Samar may be over within the next eleven months.  This after the Local Water Utilities Administration (LWUA) has “partially” taken over the “management functions” of the nearly 23-year old Basey Water District (BWD) effective October 16.  During the period that the LWUA’s mind, heart and hand will be directly upon the BWD’s organizational and technical concerns, water consumers in the town’s 18 barrios that are directly served by the district, can expect fair, albeit drastic or radical, changes and improvements.  Most importantly, they can expect clean and potable water that is safe to drink even by infants and the sick.

LWUA administrator Daniel I. Landingin designated Antonio Ronelo C. Palencia, the incumbent water utility development chief of LWUA’s Area 6 (Bicol/Visayas), as interim general manager “to effect a partial take-over of the management functions” of the cash-strapped water district, “effective October 16, 2010”.

In his undated memorandum of designation, Landingin instructed Palencia to perform four specific functions, namely:

“1. Review, study and recommend as necessary the effectiveness and workability of the existing organization, facilities, systems, and procedures, policies, guidelines, rules and regulation(s).  Make necessary amendments and/or adjustments so as to conform to LWUA guidelines and policies;

“2. Hire and/or fire such personnel as may be necessary to carry out effectively the take-over of the water district in accordance with the existing laws;

“3. Establish systems and procedures to hasten the institutional growth and viability of the water district; (and)

“4. Provide guidance and training to district employees to improve and attain efficient operations”.

Last October 12, the LWUA czar approved a recommendation for the take-over submitted by LWUA senior deputy administrator Emmanuel B. Malicdem.

Malicdem provided his boss with the background information on the ailing water district, which served as basis for his recommendation.  In his September 27 memorandum for the administrator, he said in part:

“2. The BWD was a beneficiary of the P5.0 Million JICA Grant for Small Water District in 2007.  It was later granted a P0.6 Million loan from LWUA to repay the unremitted contributions to the GSIS.  On March 2009, it availed of a P5.0 Million Emergency Loan for the repair and rehabilitation of its transmission line which was damaged. Simultaneous to the emergency loan, the BWD was granted one (1) year suspension of billings on all loans (including restructured) as a relief of the emergency situation.

“3. The district has yet to resume paying its regular monthly amortization of P47,889 per month starting March 2010 and is now seven months delayed.  On top of this, the district has to pay up P0.57Million suspended billings in less than a year pursuant to LWUA policy.  The amortization on the P5.0 Million Emergency Loan is also forthcoming.

“The (General Manager) has outstanding materials loans with various suppliers amounting to P611,826.70 without prior approval from the (Board of Directors).

“4. Moreover, due to numerous complaints of water consumers of the poor water service of the district, the Municipal Government of Basey, Samar, through the Sangguniang Bayan, issued Resolution No. 108, Series of 2010 requesting the LWUA to take over the management and operation of the BWD for failure of management to provide potable water to its constituents.”

On the same date of Malicdem’s recommendation, Administrator Landingin forthwith recommended  to the LWUA board of trustees the “partial take-over of the management function of the Basey Water District effective October 16, 2010”, incorporating therein as his justification those made in the Malicdem memo.

The LWUA administrator took another proper step before effecting the take-over.  On the day of the town fiesta of Basey, September 29, Landingin wrote Alexis V. Yu, the BWD’s chairman of its board of directors, informing the BOD head, as follows:

“Please be informed that due to the inability on the part of the Basey Water District to cope up with the mounting arrears on the regular monthly amortization, the P0.57 Million suspended billings and forthcoming amortization on P5.0 Million Emergency Loan, we have decided to temporarily take over the management functions of your Water District, pursuant to Sec.36 of PD 108, as amended, and the provision of the Contract of Loan executed between the Basey Water District and the LWUA.

“Our take-over of the Basey Water District will take effect for one (1) year starting October 16, 2010, after which autonomy shall be returned to the water district.  Rest assured that during the period of take-over, we will strive to effect the necessary steps to develop your personnel and operating procedures to promote the viability of your water district.”

Palencia’s designation was attached to that letter for BOD chairman Yu.

It’s not known yet to many in the Waray Region whether the interim general manager, Antonio Ronelo C. Palencia, hails from the World-War-II-historic town of Leyte, or is related to the Palencia families in Leyte.  Perhaps, someone can provide this writer with the IGM’s resume or biodata so that we can get to know him through this corner.

In the meantime, I join the Basaynons in thanking the LWUA for its appropriate action and in welcoming – with our hats off!, IGM Tony Palencia.