A major controversy has erupted at the Metro Cebu Water District (MCWD) following a detailed complaint filed by an anonymous employee with the Office of the Ombudsman-Visayas. The three-page document accuses top officials of serious misconduct, including corruption, favoritism, and financial mismanagement, casting a shadow over the vital utility's governance.
Detailed Allegations of Misconduct
The complainant, who identified only as a "Concerned Employee of MCWD," laid out a series of grave accusations. The claims point to systemic issues within the organization's human resources and procurement processes.
Specifically, the complaint highlights alleged favoritism in promotions. This includes appointing individuals with questionable qualifications, deliberately delaying the filling of vacant positions to benefit insiders, and pre-announcing promotions before official postings are made.
On the financial front, the employee accused management of misusing authority in supplier transactions. A particularly severe allegation is the failure to release employee salaries from January to March 2025, which reportedly caused significant hardship for workers. The complaint also cites the unlawful release of honoraria to members of the Bids and Awards Committee and the Joint Venture Committee.
Questioned Contracts and Executive Lifestyles
The whistleblower raised red flags over several high-value contracts and projects. Irregularities were alleged in the Carmen 1 and Carmen 2 bulk water supply contracts and the termination of a 2013 bulk water supply agreement.
Furthermore, the complaint suggests that MCWD resources were diverted to supplier-led projects. The management of non-revenue water (NRW) was also criticized, with decisions allegedly raising consumer costs while unfairly benefiting select contractors.
Perhaps most damning are the allegations concerning top executives. The complainant flagged noticeable discrepancies between the reported incomes and the lifestyles of senior officials, suggesting the possible misuse of company funds. Unverified foreign trips by executives were also cited as a concern.
The anonymous employee stated that several staff members are "tired of the management" and are prepared to submit more evidence as it becomes available.
Ombudsman's Swift Response and Order
In a decisive move, the Office of the Ombudsman-Visayas has officially stepped in. It has ordered MCWD General Manager Edgar Donoso and the agency's executive committee to submit their sworn counter-affidavits.
The order, dated September 17, 2025, gives all respondents 10 days from receipt to file their responses. They are required to include their full names, positions, salary grades, home addresses, and email addresses.
The directive is strict: failure to comply will be considered a waiver of their right to respond, allowing the Ombudsman to proceed with the investigation unimpeded. The order also explicitly bars any motions to dismiss or requests for clarification, warning that such procedural delays will be stricken from the record.
The Public Assistance Bureau of the Office of the Ombudsman received the complaint on August 5, 2025, and subsequently referred it to the Visayas office for a proper investigation.
Deep-Seated Governance Issues
This scandal adds another layer to the long-running governance challenges plaguing MCWD. The water district has been marred by internal conflicts, recurring vacancies on its board, and persistent disputes over appointment authority. These battles have involved successive Cebu City administrations and the Local Water Utilities Administration (LWUA).
When sought for comment, MCWD spokesperson Minerva Gerodias stated that she needed to check with their legal team to confirm if they had received a formal copy of the complaint. The outcome of this Ombudsman investigation is now highly anticipated, as it could lead to significant accountability measures for one of Cebu's most critical public utilities.