A major corruption scandal has rocked the Metro Cebu Water District (MCWD), with top officials now facing a formal investigation by the Office of the Ombudsman-Visayas. The probe was triggered by a detailed, three-page complaint filed by an anonymous employee alleging widespread corruption, favoritism, and financial mismanagement within the utility.
Serious Allegations of Misconduct
The complaint, submitted by a person identifying as a "Concerned Employee of MCWD," levels a series of grave accusations against the agency's leadership. It claims that promotions are riddled with favoritism, pointing to the appointment of individuals with questionable qualifications and the deliberate delay in filling vacant positions to benefit insiders. The complaint also alleges that promotions are often pre-announced before official postings are made.
Financial and operational mismanagement forms a core part of the allegations. The employee accuses officials of misusing their authority in supplier transactions and failing to release employee salaries for the months of January to March 2025, causing significant hardship for workers. Furthermore, the complaint raises red flags over irregularities in the Carmen 1 and Carmen 2 bulk water supply contracts and the termination of a 2013 bulk water supply agreement.
Questioned Contracts and Executive Lifestyles
The anonymous whistleblower also highlighted several other concerning practices. These include the alleged unlawful release of honoraria to members of the Bids and Awards Committee and the Joint Venture Committee, as well as unverified foreign trips taken by executives. The complaint suggests that MCWD resources were improperly diverted to projects led by suppliers.
Management of non-revenue water (NRW) is also under scrutiny, with the complainant asserting that certain decisions have unnecessarily raised costs for consumers while selectively benefiting contractors. Perhaps most damning are the allegations of discrepancies between the reported incomes of top executives and their visible lifestyles, hinting at the possible misuse of company funds.
The complainant stated that many staff members are "tired of the management" and are prepared to come forward with more evidence as it becomes available.
Ombudsman Issues Direct Order to MCWD Leadership
In a decisive move, the Office of the Ombudsman-Visayas has officially responded to the complaint. In an order dated September 17, 2025, Ombudsman investigators directed MCWD General Manager Edgar Donoso and the entire executive committee to submit their sworn counter-affidavits.
The directive is strict and leaves little room for delay. All respondents have been given 10 days from receipt of the order to file their responses, which must include their full names, positions, salary grades, home addresses, and email addresses. The order explicitly states that failure to comply will be considered a waiver of their right to respond, allowing the Ombudsman to proceed with the investigation based on the evidence at hand.
The Ombudsman also barred any motions to dismiss, requests for clarification, or other procedural pleadings that could delay the process, warning that such filings will be stricken from the record. The complaint was originally received by the Public Assistance Bureau of the Office of the Ombudsman on August 5, 2025, before being referred to the Visayas office for a proper investigation.
This investigation adds another layer to the persistent governance challenges plaguing MCWD, which has long been entangled in internal conflicts, recurring board vacancies, and disputes over appointment authority involving Cebu City administrations and the Local Water Utilities Administration.
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 copy of the formal complaint from the Ombudsman.
