O P P O S I T I O N
The herein Oppositors xxx HOMEOWNERS ASSOCIATSION INC. (xxx), x x x, x x xx, x x x, respectfully state:
1. A Notice of Hearing from the National Water Resources Board (NWRB) was recently received by the office staff of the xxx Subdivision Homeowners Association, Inc. (xxx) inviting all affected parties:
(a) to appear in a hearing to be conducted on December 7, 2015, at 9:00 in the morning at the NWRB-WUD Conference Room, 8/F, NIA Building, EDSA, Quezon City; and
(b) to file on or before the said hearing their Oppositions, if any, to the pending application of the xxx Subdivision Multi-Purpose Cooperative (xxx) for a Certificate of Public Convenience to operate and maintain a waterworks system in Xxx Subdivision.
Hence, this Opposition.
2. The names and other personal circumstances of the herein Oppositors are as follows:
(a) xxx Subdivision Homeowners Association, Inc. (xxx), the duly registered and recognized association of the homeowners/residents of xxx Subdivision, xxx, xxx pursuant to existing laws of the Republic of the Philippines as implemented by the Housing and Land Use Regulatory Board (HLURB), with office address at Xxx, Xxx, represented herein by the undersigned Oppositors as the duly elected incumbent Directors and Officers thereof.
(b) X x x, of legal age, married, and resident of xxx, who is further appearing as an Oppositor in his individual capacity as a homeowner/resident of the Subdivision aside from being a director and officer of xxx;
(c) xxx, of legal age, married, and resident of x x x , who is further appearing as an Oppositor in his individual capacity as a homeowner/resident of the Subdivision aside from being a director and officer of xxx;
(The names and personal circumstances of the other directors and officers of oppositor association are also enumerated here).
REASONS FOR THE OPPOSITIOIN
3. There is no evidence in the record showing that the applicant xxx has formally furnished the undersigned oppositors and all the other affected and interested parties/entities authenticated copies of its (a) application/petition and its annexes/supporting documents, (b) proofs of jurisdictional facts, (c) publication, and (d) other documentary requirements mandated by the NWRB rules and regulations.
4. The affected/interested parties and entities, other than the herein oppositors, include the following:
(a) Manila Water Co., Inc. (MWCI);
(b) Metropolitan Water Sewerage System (MWSS);
(c) Cooperative Development Authority (CDA);
(d) Housing and Land Use Regulatory Board (HLURB);
(e) Office of the Mayor of the Municipality of Xxx, Xxx;
(f) Office of the Vice Mayor of the Municipality of xxx, xxx;
(g) Office of the Governor of the Province of xxx; and
(h) The Chairman of Barangay xxx, xxx, xxx.
5. Thus, the herein oppositors hereby request the NWRB to order the applicant to furnish them and all the other interested and affected parties and entities, as named above, with authenticated copies of the document referred to in Par. 3 hereof, supra, during the initial hearing set by the Board on December 7, 2015 at 9:00 AM to give the herein oppositors a fair opportunity to review, rebut, controvert and traverse the same in a supplemental pleading.
(For this purpose, we refer to NWRB Memorandum Circular No. 01, Series of 2006 [a copy of which was attached to the Notice of Hearing received by XXX Office]).
6. The herein oppositors knew for the first time the details of the October 15, 2015 application of the applicant xxx only on November 23, 2015 upon request by herein lead oppositor xxx President xxx (Exh. “1”) addressed to the NWRB for copies of the following:
(a) The Routing Slip, dated 15 October 2015, (Exh. “2”);
(b) The filled up Application Form, dated 15 October 2015 (Exh. “3”), and;
(c) The Sketch Maps of MWCI served households, (Exhs. “4” to “6”).
7. The applicant has no legal authority to apply for a Certificate of Public Convenience (CPC).
7.1. The applicant is not the owner of the xxx water system.
7.2. The applicant is no longer authorized by xxx homeowners association to operate or manage the xxx water system.
7.3. The xxx revoked in 2014 the authority of the applicant to operate or manage the water system of XXX pursuant to XXX Board Resolution No. xxx, dated xxx, a copy of which is attached as Annex “7” hereof.
7.4. The said resolution was ratified by 496 XXX members/homeowners. (See Annex “9”, infra.)
7.5. To stress: The water system of the Subdivision is owned by xxx. (See contract [Exh. “8”] signed by and between Manila Water Co., Inc. (MWCI) and xxx [not the applicant xxx]}.
8. The applicant has committed fraud, misrepresentations, monopolistic acts, harassment, and intimidation as the unwanted and rejected operator of the xxx water system.
9. Fraud was committed by the applicant xxx by conspiring with the 2004 directors and offices of xxx to divert the management of the xxx water system from the xxx Water Committee to a private business enterprise in the person of applicant xxx.
10. The said conspirators maliciously forced the adoption in xxx of xxx Board Resolution xxx transferring the power to manage the xxx water system from the xxx Water Committee to the applicant xxx.
11. The xxx XXX directors and officers also constituted as the incorporators, founders, leaders and officers of applicant xxx when the latter was established in xxx.
It was a clear case of fraudulent interlocking directorates and corporate layering.
12.The conspiring parties (i.e., the xxx xxx directors/officers and the xxx xxx founding incorporators and officers) accomplished the abovementioned illegal and fraudulent diversion of the management/operation of the xxx water system from the xxx Water Committee to the applicant xxx without the conformity of the majority of the homeowners of the Subdivision.
13.The diversion was a violation of Section II (8) of the MWCI/xxx contract.
14.It violated the non-profit, non-proprietary, non-stock status of xxx as an entity as provided in its Articles of Incorporation and Bylaws.
15. The hidden political purpose of the said illegal diversion was to monopolize all the future elections of the directors and officers of xxx by using the xxx water system as a ruse, bait, and enticement.
16.The applicant xxx directors and officers used their cooperative for personal gain in the forms of per diems, perks and other fringe benefits at the expense of the homeowners who were forced to pay extremely high costs of water supply per cubic meter and other association fees, dues and clearances.
17. To repeat: The authority of the applicant to operate the xxx water system was been revoked in 2014 by the xxx Board of Directors per Board Resolution No. xxx (Exh. “7”, supra);
18.The said resolution was ratified by some 496 xxx members or the majority of the homeowners.
It was also the subject of a resolution issued by the Court of Appeals. (Exh. “9”).
19.Discussed hereinbelow are additional reasons why the pending application of the xxx for a Certificate of Public Convenience should be denied.
20. The feeder line materials and connections (at the points behind the locations of the five  MWCI sub-meters) to the service lines of the households were all sub-standard.
They were made of inferior flexible thin PVC pipe installed in 2004. They are now deteriorated.
21.The applicant is misleading the NWRB by submitting fraudulent numbers of consumers.
The applicant fraudulently claims in its application before the NWRB that it will serve 400 households in the Subdivision if and when its application is granted.
Please note, however, that in the list of households that the applicant had previously submitted to the Cooperative Development Authority (CDA) its number of household was only 127.
22. The abovementioned misrepresentation is intended to secure lower rates or charges from the MWCI while the applicant charges higher rates to the consumers/homeowners.
The selfish motive of the applicant is profit or gain. Not public service. Not public convenience.
Such a motive contradicts the spirit of the laws on cooperatives, the Public Service Act, and the existing water-related laws of the country.
Meanwhile, the applicant continues to violate the non-profit, non-proprietary, and non-stock provisions in the xxx Articles of Incorporation and Bylaws.
The above facts show a clear picture of fraud and dissipation of the funds and assets of xxx on the part of the applicant.
23. The herein oppositors have initiated discussions with the MWCI for the individualization of the xxx water system connections with MWCI system.
24. The leaders of applicant xxx falsely claim that they are the incumbent directors and officers of xxx.
They unjustly undermine the legitimate leadership status of the herein oppositors.
They intentionally create political disunity and sociological confusion among the homeowners.
Hence, the herein oppositors were constrained to file recently with the HLLURB a petition praying that it supervise the next regular election of xxx which is supposed to be held this month (December 2015) per its By-Laws.
25. The said petition is docketed as HLURB NCRHOA - xxx.
The parties have submitted their position papers. It is now ripe for resolution.
The herein oppositors (and the homeowners of the Subdivision) are now waiting for the final resolution by the HLURB of the said petition for the common good of the homeowners.
26. As soon as the next regular election of xxx is held under the supervision of the HLURB, it will restore unity in the Subdivision.
The directors and officers of xxx that will be elected therein could work in peace in finalizing with the MWCI the full implementation of the water connections individualization scheme.
The said plan has been the subject of negotiations between the MWCI and the xxx (represented by the herein oppositors) since 2009.
Unfortunately, the brains behind the applicant xxx and their co-interlocking directors/officers in xxx have tried to sabotage the plan to the grave detriment of the homeowners.
27. The pending application of xxx for a Certificate of Public Convenience is part of its continuing attempt to fraudulently control the xxx water system (which it does not own) in order to rake in huge profits therefrom to the grave detriment of the homeowners.
The pending application is also a part of the continuing attempt of the applicant xxx to monopolize political power in the Subdivision for financial gains.
28. Further, it must be noted that nothing in the record shows (a) that the applicant xxx is a cooperative in good standing in the records of the CDA and (b) that it has religiously complied with the laws and the implementing rules and regulations governing cooperatives in the country, such as:
· Regular submission of its internally and externally audited annual financial reports to the CDA;
· Regular trainings and continuing education of its directors and officers by the CDA;
· Regular submission of its updated/current economic and financial studies to the CDA to allow the latter to monitor the economic and organizational viability of the applicant as a cooperative;
· And others.
29. Furthermore, nothing in the records shows that it has registered its existence, its economic operations, and its water-related incomes with the proper regulatory agencies, such as:
· Office of the Mayor of xxx, xxx (Business Permit and Licensing Office);
(A cooperative, despite its tax-exempt status is still required by law to register with the Municipality for purposes of business license/permit monitoring, fire clearance, health clearance, building inspection clearance, and the like).
· Bureau of Internal Revenue (BIR);
(Tax-exempt cooperatives and other entities are still required by the rules and regulations of the BIR to annually register or report their income transactions and to register as VAT and Withholding Tax Agents for tax monitoring purposes).
· Social Security System (SSS);
(Non-profit and tax-exempt entities are still required by the SSS law and regulations to register its workers with the SSS for the protection of the said workers).
· Philippine Health Corp. (Philhealth);
(Non-profit and tax-exempt entities are still required by the Philhealth law and regulations to register its workers with the Philhealth for the protection of the said workers).
· Pag-Ibig Fund;
(Non-profit and tax-exempt entities are still required by the Pag-Ibig Fund law and regulations to register its workers with the Pag-Ibig Fund for the protection of the said workers).
· Proper regional and national Federation of Cooperatives;
(The laws on cooperatives and the rules and regulations of the CDA require all cooperatives to participate in and be a part of a regional and a national federation of cooperatives).
· And others.
30. Finally, nothing in the record shows that the applicant has (a) the financial capacity, (b) the moral integrity, (c) the organizational, technical and engineering competence and experience, (d) the mass support of the homeowners, (e) the model corporate social responsibility, and (f) the excellent track record as a water service provider to justify its application for a Certificate of Public Convenience.
WHEREFORE, premises considered it is most respectfully prayed that the application of the xxx Subdivision Multi-Purpose Cooperative (xxx) for a Certificate of Public Convenience (CPC) be DENIED for lack of merit and for being tainted with intentional fraud and misrepresentations.
FURTHER, the herein oppositors respectfully pray for such and other reliefs as may be deemed just and equitable in the premises.
xxx for Quezon City, December 4, 2015.
(NAMES AND ADDRESSES OF THE OPPOSITORS)
We, X X X X. whose residential addresses and other personal circumstances are stated in Par. 2, supra, of the foregoing Opposition, after having sworn in accordance with law hereby depose and say: That we are the Oppositors in the foregoing Opposition; that we caused the preparation thereof; that we read the contents thereof; and that the same are true and correct based on our direct personal knowledge and based on authentic records.
(NAMES AND ADDRESSES OF THE OPPOSITORS; AND
XXX Subd. Multi-Purpose Cooperative
c/o XXX Chairman XXX
Metropolitan Waterworks & Sewerage System
Katipunan Road, Old Balara, Quezon City
Manila Water Co., Inc. (MWCI)
MWSS Compound, Balara, Quezon City
Regional Director (Region IV-A)
Cooperative Development Authority
CDA Regional Office, Calamba City, Laguna
Regional Director - Expanded NCR Field Office
HOUSING AND LAND USE REGULATORY BOARD
HLURB Bldg., Kalayaan Ave. corner Mayaman St.
Diliman, Quezon City
Vice Mayor/Presiding Officer
Office of the Mayor
Municipality of xxx
Office of the Governor
Province of xxx
Copies of this Opposition is served on the Applicant and the other interested parties named hereinabove via registered mail due to the lack of field staff of undersigned lead oppositor at this time and due to the urgency of filing the same.
X x x
Lead Oppositor; and