DOJ: NWRB’s assessments to LWDs are Illegal...
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T he Department of Justice (DOJ) denied the National Water Resources Board’s (NWRB) motion for reconsideration assailing the Secretary of Justice’s decision in favor of Metro Cebu Water District (MCWD) and all the local water districts (LWDs). DOJ: NWRB’s assessments to LWDs are Illegal DOJ Secretary Leila De Lima stood firm on her declarations that (1) MCWD is exempt from payment of annual water charges and fees pursuant to Section 45 of Presidential Decree 198, as amended, (2) that Presidential Decree 1067 did not expressly or impliedly repeal PD 198, as amended or any of the provisions thereof; and (3) that LWDs are exempt from the administrative regulation by the NWRB. As provided in DOJ’s first ruling dated March 29, 2012, Section 45 of PD 198 provides: “Section 45. Exemption from Taxes . a district shall (1) be exempt from paying income taxes and (2) shall be exempt from the payment of (a) all National Government, local government and municipal taxes and fees, including any franchise, filing, recordation, license or permit fees or taxes and fees, charges or costs involved in any court of administrative proceeding in which it may be a party and (b) all duties or imposts on imported machinery, equipment and materials required for its operations.” Despite of the law’s clear provision, NWRB claimed that PD 198 was repealed by PD 1067 or the Water Code of the Philippines since the rule on statutory construction states that in between two laws on the same subject matter which are irreconcilably inconsistent, the latter law passed shall prevail. NWRB argued that aside from Section 83 of PD 1067, Section 8 of the Implementing Rules and Regulations (IRR) of the same decree also lodges to NWRB, the government’s authority to control and regulate the state’s water resources. However, the DOJ proclaimed that such contention is untenable since Article 100 of PD 1067 did not expressly repeal PD 198 or any of its provisions. DOJ explains that there is no express or clear legislative intent to repeal or alter the said provision. Further, DOJ stated that Section 28 of PD Secretary of Justice Leila De Lima (Photo from filipinostarnews.net) 1 198 exempts any LWD from the administrative regulation of the NWRB as long as they are holding a valid Certificate of Conformance or a Conditional Certificate of Conformance issued by the Local Water Utilities Administration (LWUA). DOJ also emphasized that under the Section 62 of PD 198, as amended, LWUA and not NWRB, has the power and duty to establish standards and adopt rules and regulations for LWDs. Citing the case of Barcellano vs. Bañas as an example in its first decision, DOJ stated that PD 198, as amended and PD 1067 are clear and unequivocal and therefore, its interpretation or construction is unnecessary. In the denial of NWRB’s motion for reconsideration issued last August 15, 2012, Secretary De Lima maintained that her ruling in all cases involving questions of law is conclusive and binding on all parties as provided in Section 67, Chapter 14, Book IV, of the Administrative Code of 1987. Before the consecutive DOJ decisions in favor of MCWD, NWRB has been charging the LWD with annual charges since 1978. As of May 2008, the total amount of annual charges reached a whopping Php 3,951,614.75 inclusive of penalties. MCWD was again assessed by NWRB a total of Php 659,414,414.83 for 114 water permits last May 13, 2009.
Transcript of DOJ: NWRB’s assessments to LWDs are Illegal...
T he Department of Justice (DOJ) denied the National Water Resources Board’s (NWRB) motion for reconsideration assail ing the Secretary of Justice’s decision in favor of Metro Cebu Water District
(MCWD) and al l the local water districts (LWDs).
DOJ: NWRB’s assessments to LWDs are Illegal
DOJ Secretary Leila De Lima stood firm on her declarations that (1) MCWD is exempt from payment of annual water charges and fees pursuant to Section 45 of Presidential Decree 198, as amended, (2) that Presidential Decree 1067 did not expressly or impliedly repeal PD 198, as amended or any of the provisions thereof; and (3) that LWDs are exempt from the administrative regulation by the NWRB.
As provided in DOJ’s first ruling dated March 29, 2012, Section 45 of PD 198 provides:
“Section 45. Exemption from Taxes . a district shall (1) be exempt from paying income taxes and (2) shall be exempt from the payment of (a) all National Government, local government and municipal taxes and fees, including any franchise, filing, recordation, license or permit fees or taxes and fees, charges or costs involved in any court of administrative proceeding in which it may be a party and (b) all duties or imposts on imported machinery, equipment and materials required for its operations.”
Despite of the law’s clear provision, NWRB claimed that PD 198 was repealed by PD 1067 or the Water Code of the Philippines since the rule on statutory construction states that in between two laws on the same subject matter which are irreconcilably inconsistent, the latter law passed shall prevail.
NWRB argued that aside from Section 83 of PD 1067, Section 8 of the Implementing Rules and Regulations (IRR) of the same decree also lodges to NWRB, the government’s authority to control and regulate the state’s water resources.
However, the DOJ proclaimed that such contention is untenable since Article 100 of PD 1067 did not expressly repeal PD 198 or any of its provisions. DOJ explains that there is no express or clear legislative intent to repeal or alter the said provision.
Further, DOJ stated that Section 28 of PD
Secretary of Justice Leila De Lima (Photo from filipinostarnews.net)
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198 exempts any LWD from the administrative regulation of the NWRB as long as they are holding a valid Certificate of Conformance or a Conditional Certificate of Conformance issued by the Local Water Utilities Administration (LWUA).
DOJ also emphasized that under the Section 62 of PD 198, as amended, LWUA and not NWRB, has the power and duty to establish standards and adopt rules and regulations for LWDs.
Citing the case of Barcellano vs. Bañas as an example in its first decision, DOJ stated that PD 198, as amended and PD 1067 are clear and unequivocal and therefore, its interpretation or construction is unnecessary.
In the denial of NWRB’s motion for reconsideration issued last August 15, 2012,
Secretary De Lima maintained that her ruling in all cases involving questions of law is conclusive and binding on all parties as provided in Section 67, Chapter 14, Book IV, of the Administrative Code of 1987.
Before the consecutive DOJ decisions in favor of MCWD, NWRB has been charging the LWD with annual charges since 1978. As of May 2008, the total amount of annual charges reached a whopping Php 3,951,614.75 inclusive of penalties.
MCWD was again assessed by NWRB a total of Php 659,414,414.83 for 114 water permits last May 13, 2009.
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Alagad Party List Representative Rodante Marcoleta (fourth from left) expressed support to the cause of PAWD and its member-water districts during a courtesy call at the House of Representatives last August 28, 2012 in Quezon City. Rep. Marcoleta, whose group aims to combat poverty through Bayanihan and active non-violence, believes in the value of championing water districts as their mandate is to deliver safe, affordable, and adequate water for Filipinos in the countryside. Also in the photo are the PAWD leaders consisting of (from left) Secretary Carlos Santos, Chairman Gilbert Camaligan, Ways and Means Chair Ester Vengco, President Alfredo Silva, and Executive Vice-President Pablito Paluca.
W ater districts may now connect with the
PAWD Secretariat through its new email address, p a w d _ o f f i c e @ y a h o o . c o m . All water districts are encouraged to create an off icial email address for easier and more convenient communication.
Also, to receive the latest updates, General Managers are urged to text their new mobile numbers to (0917) 8032130 or (0922) 8497362.
IMPORTANT:
is the official monthly news update of the Philippine Association of Water Districts, Inc. with editorialoffice at the PAWD Office, LWUA Bldg., Katipunan Ave., Balara, Quezon City, Philippines. Tel. Nos. (+632) 920-5453, Fax (+632) 927-5032, e-mail: [email protected].
EDITORIAL STAFFARTURO G. VILLASAN
Chairman
MA. TERESA C. COMBATIRManaging Editor
KARLO CEASAR C. ABARQUEZReporter
INAH T. ROJAS-ALBUERALay-out Artist
ADVISERSGILBERTO D. CAMALIGAN
ALFREDO S. SILVA
Rep. Miro Quimbo (right), co-author of House Bill No. 5497 along with Rep. Karlo Nograles, assured his bill does not seek to abolish local water districts. The representative of Marikina City’s 2nd District also said he is keen on meeting with the PAWD leadership and also expressed willingness to visit some water districts. Former PAWD President Delfin Hilario (left) along with Metro Cotabato Water District’s Chairman Bong Sinsuat (middle) met with Rep. Quimbo last September 20, 2012 at the House of Representatives to personally hand over the Association’s second position paper on HB 5497, otherwise known as the Water Sector Reform Act of 2012 and the counterpart of Senator Angara’s Senate Bill No. 2997.
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