Pichay’s appointment as LWUA head stirs fears

MANILA, Philippines — Employees and members of the Water System Employees Response (Water) expressed fears on Thursday that the appointment of former Surigao del Sur congressman Prospero Pichay Jr. as administrator of the Local Water Utilities Administration (LWUA) would lead to mass lay-off and privatization of the country's 617 water districts. Rodrigo Aranjuez, national president of Water System Employees Response (Water) and president of Namadacwad-Davao City Water District (Nagkahiusang Mamumuo sa Davao City Water District or the United Workers of DWCD), said they found no reason to rejoice over President Gloria Macapagal Arroyo’s latest appointee. Aranjuez said the appointment “does more harm than good now that the national government reaffirms its commitment to international financial institutions (IFIs) about involving the private sector more in the development of key industries in the countries like water and electricity." “Pichay would only contribute to the worsening problems of privatization and corruption that is besetting the LWUA. We fear that in as much as Pichay was the top spender during the last elections, the funds of the LWUA, mostly grants, aids and loans intended for technical and financial assistance for the water districts, are in bad hands," said Aranjuez. Aranjuez warned that more employees from different water districts are for layoff because privatization equates layoff, just like the experience of the Metropolitan Waterworks and Sewerage System (MWSS) in the 1990s where more than 50 percent of its work force had been laid off. Aside from the union of the Davao City Water District, Water members also include San Pablo Water District, Calamba Water District, Cotabato City Water District, Pagsanjan Water District, Metro Kidapawan Water District, Bacolod City Water District, Leyte Metro Water District, Santiago City Water District, La Union Water District, Naga Water District, Pili, Camarines Norte, Surigao, Zamboanga, among others. The LWUA, whose main office is located at Balara in Quezon City, is a specialized lending institution that promotes and oversees the development of provincial waterworks. Recently, LWUA’s domestic and foreign borrowing authority was proposed to be extended to $900 million, upon the approval of Department of Finance and the Bangko Sentral ng Pilipinas. Before being named LWUA chief, Pichay was rumored to have been appointed as administrator of the Overseas Workers Welfare Administration (OWWA), causing a stir among overseas Filipino workers worried that the welfare fund for migrant workers could be used for political purposes. Pichay has reportedly made known his plans to seek political office in the next elections again. Despite being the biggest spender in the 2007 senatorial elections and running under the well-funded administration coalition of President Arroyo, Pichay failed to make it to the winning 12. Earlier this month, OFW groups expressed dismay after receiving a letter from the Malacańang addressing Pichay as OWWA administrator. The palace later dismissed that as a case of “wrong addressee." Last week, the OFW group Global Filipino Nation said it learned from former Labor Secretary Patricia Sto. Tomas that Pichay’s name was excluded from the OWWA Search Committee’s shortlist that was submitted to President Arroyo. - GMANews.TV