The Office of the Ombudsman has opened an investigation into a complaint filed against former Cebu governor Gwendolyn Garcia over the pre-termination of a 20-year bulk water supply contract between the Metropolitan Cebu Water District (MCWD) and Cebu Manila Water Development, Inc. (CMWD).
In an order dated September 25, 2025, the Ombudsman’s Public Assistance and Investigation Bureau (PIAB) directed Garcia to file her response to the complaint for graft and misconduct within 10 days from receipt of the order.
The complaint for alleged violation of Section 3(e) of Republic Act 3019 or the Anti-Graft and Corrupt Practices Act was filed by a certain Aileen Rama Donal.
Donal alleged that during her term as governor, Garcia initiated actions that led to the premature cancellation of the long-term CMWD-MCWD water supply agreement, and its replacement through an emergency procurement arrangement, which was followed later by a new contract.
Allegedly, the new deal resulted in higher water costs.
The complaint describes the higher water costs as grossly disadvantageous to both the government and the consumers.
The Ombudsman directive is observed to have been issued days prior to the reported 12-percent water-rate hike imposed by MCWD effective October 1, 2025, following an earlier 38 percent provisional adjustment in March 2025.
Donal's complaint also said that the provincial govenment, under Garcia’s leadership, entered into an agency-to-agency procurement with MCWD despite allegedly lacking legal authority and technical capacity to deliver bulk water. These acts allegedly violate Republic Act 9184 or the Government Procurement Reform Act and its Implementing Rules.
Public records would reportedly show that the new bulk-water contract signed in early 2024 with Manila Water Philippine Ventures, Inc. priced water at P58 per cubic meter compared to P24.59 under the original CMWD contract. This would reportedly cost the government and consumers over P3.5 billion more over the next 10 years.
RESPONSE
Garcia is yet to file her counter-affidavit, as of this writing, but in a statement sent to GMA Regional TV News on Thursday, October 9, 2025, Garcia’s legal team underscored that the complaint is based on incomplete facts.
“We firmly maintain that the complaint filed is based on incomplete facts, misplaced assumptions, and hollow conclusions,” said Atty. Rory Jon Sepulveda.
“It presents a selective version of events that disregards the broader context and the legal and administrative realities surrounding the matter,” Sepulveda said.
He pointed out that Garcia “acted well within her authority, discretion, and official prerogatives - and when required, with the approval/authority from the Sangguniang Panlalawigan [Provincial Board].”
He said further that Garcia was “always guided by her duty to safeguard and advance the best interests of the Province.”
“We are confident that, once the full facts and circumstances are fairly and objectively evaluated, it will be evident that no wrongdoing or abuse of authority was committed. Respondent remains steadfast in her commitment to truth, integrity, competence, and the defense of actions taken in the best interest of the Province of Cebu,” the statement said.
