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Heide L. Mendoza Commissioner-II Commission of Audit Central Office

Thru: CBCP Monitor From: Cagayan de Oro City Water District concerned employee October 27, 2011

An Open Letter to Commissioner Heide L. Mendoza

Dear Commissioner, Peace in Christ The undersigned is a COWD concerned employee who has meet President Benigno Simeon C. Aquino - III during his visit here in the City of Cagayan de Oro last March 23, 2011. I have told him about COWD BOD who have continuously abused of alleged graft and corruption and perks that the COWD BOD has received I have given the President the said supporting documents of what they had received. I also furnish the President a copy of the COA partial report dated November 09, 2009 regarding the anomalies and irregularities of the COWD Board of Directors. The COWD concerned employees will always be vigilant for the publics interest and that the COWD BOD members will only unanimously approved with legal basis but not to their political debt of the City Mayor and with regard of the recent COWD financial and water crisis. Based on the GOCC Governance Act of 2011(SEC. 19): The members of the Board and Officers of GOCCs shall: Act with utmost and undivided loyalty to the GOCC and Fiduciary Duties of the Board and Officers avoid conflicts of interest and declare an interest they may have in any particular matter before the Board. The latest BOD Res. No.081, s-11 dated July 13, 2011 which extended the financial assistance of One Hundred Thousand Pesos (100,000.00) for the Kagay-an Festival 2011 upon the official written request of our City Mayor Vicente Y. Emano dated June 27, 2011. The COWD Board of Director members then were composed of Mr. Joel A. Baldelovar, COWD BOD Chairman, Mr. Soc Anthony M. del Rosario Vice Chairman the disgruntled BOD member because he was the brain behind to make the COWD become cooperative, Atty. Emmanuel A. Gaabucayan, Secretary, Mr. Sandy Bass, Mr. Ruben A. Vegafria, It was a clear violation of the Administrative Order no. 103 directing the continued adoption of austerity measures in the government Sec.1 no. 8 suspension of the following: Donations, contributions, grants and gifts, except if said activities are undertaken pursuant to the mandate of

the donor-agency. They allegedly violated the A.O. no. 105 which orders all government agencies to implement austerity measures. The EO no.24, transparency, accountability and prudence in the government-owned or-controlled corporation (GOCC) are government agencies and their funds are public funds which must be used prudently al the times with a view to prevent dissipation and waste. According to Article 217 Malversation of public funds or property; Presumption of malversation Any public officer who, by reason of the duties of his office, is accountable for public funds or property, shall appropriate the same or shall take or misappropriate or shall consent, through abandonment or negligence. Furthermore, the COA partial report dated November 09, 2009 has enumerated the series of events that started from the Bulk Water Supply Project (BWSP). It probed the anomalies and irregularities of the COWD Board of Directors actions, to list; 1.The alleged COWD Board Resolution no. 222, s-04 dated December 09, 2004 appeared to have been issued in favor of the caprices of a Bulk Water Supplier Rio Verde Water Consortium, Inc., a non-responsive bidder despite the recommendation of the Bids and Awards Committee (BAC) for failure of bidding in violation of RA 9184. The COWD Board of Director Members then were composed of Mr. Frank Mendez, Chairman, Atty. Fred Gapuz, Vice Chairman, Dr. Raymundo Java, Mr. Sandy Bass and Mrs. Sarah Borja. Mr. Joel Baldelovar, now the COWD Board Chairman as also implicated. 2. The contract for BWSP was crafted and awarded apparently for the benefits and undue advantage of the contractor, the RVWCI. The provisions substantially deviated from the model contract and turned onerous in favor of RVWCI. We hope you could come out on this matter and we strongly believe that lavishness of the Cagayan de Oro City Water District Board of Directors will come to an end.

Very respectfully yours, Emmanuel C. Mulawan COWD concerned employee e-mail: Mobile Phone No. 09053234691 Ombudsman Conchita Carpio Morales Cc: Office of the Ombudsman