The Office of the Ombudsman has directed former Cebu governor Gwendolyn F. Garcia to respond within 10 days to a formal complaint accusing her of grave misconduct, grave abuse of authority, and violations of government procurement laws.
The directive, dated September 25, 2025, stems from a sworn complaint filed by Aileen R. Donal, a concerned citizen and taxpayer.
Although Garcia is no longer the sitting governor-having lost her re-election bid during the May midterm polls-she is required to submit a counter-affidavit and supporting documents to the Ombudsman’s Central Records Division in Quezon City, with proof that a copy has been furnished to the complainant.
The Ombudsman’s order, signed by Officer-in-Charge Leilani P. Tagulao-Marquez of the PIAB-D, instructs Garcia to respond and provide evidence to counter the allegations, within 10 days.
‘Respondent’s failure to file her counter-affidavit and countervailing evidence, with proof of service to the complainants within the aforesaid period, shall be deemed as waiver, and the preliminary investigation shall proceed according to existing rules of procedure,’ the order states.
Water Supply Contract
The complaint, a copy of which was furnished to The Freeman, centers on the 2013 Bulk Water Supply Contract between the Metropolitan Cebu Water District (MCWD) and Cebu Manila Water Development (CMWD), a joint venture involving the Province of Cebu.
Under the contract, CMWD undertook to supply and deliver water to MCWD at a minimum volume of 18,000 cubic meters per day for the first year, and 35,000 cubic meters daily for the second year onward, at a fixed rate of ?24.59 per cubic meter for 20 years, or until 2033.
In 2023, CMWD wrote to the MCWD a notice of termination of the contract. This was deferred twice though, on 18 November and then 30 November, but the contract was ultimately pre-terminated on 1 December that year.
In pre-terminating the contract, CMWD cited ‘unabated expenses incurred due to fortuitous and unforeseen events’ that cannot be addressed by ‘an inflexible pricing formula.’
However, Donal alleges that the termination was actually prompted by pressure from Garcia, who had publicly criticized the deal as disadvantageous to the province.
The complaint claims Garcia used her position to influence CMWD’s decision, despite the contract not meeting the legal grounds for termination under the Civil Code and procurement regulations.
Donal further argues that Garcia’s actions triggered a chain of events that led MCWD to enter into an emergency contract with Manila Water Philippine Ventures Inc. (MWPVI), at rates more than double the original price-ranging from ?58.00 to ?64.96 per cubic meter. The new arrangement could cost MCWD an additional ?3.59 billion over 10 years.
The complaint also questions the legality of the emergency procurement deal between MCWD and the Province of Cebu. It alleges that Garcia misrepresented the province’s ability to supply bulk water, even though it had to purchase the water from CMWD.
This arrangement, according to Donal, amounts to subcontracting-a practice prohibited under government procurement rules.
Donal cites a resolution from the Sangguniang Panlalawigan of Cebu authorizing Garcia to buy water from CMWD and sell it to MCWD. The resolution itself reportedly acknowledges that the province does not have direct access to bulk water, contradicting Garcia’s certification that it did.
The complaint concludes that Garcia’s actions placed MCWD in a financially precarious position, resulting in higher water rates for consumers and potentially paving the way for privatization or bankruptcy.
Garcia’s side
When The Freeman sought Garcia’s side, she initially referred inquiries to her legal counsel, Atty. Jong Sepulveda. Later, Garcia furnished a press statement from her legal team.
‘We firmly maintain that the Complaint filed is based on incomplete facts, misplaced assumptions, and hollow conclusions,’ reads the statement.
It added that the complaint accordingly presents a selective version of events that disregards the broader context and the legal and administrative realities surrounding the matter.
‘Garcia as per her legal team acted well within her authority, discretion, and official prerogatives-and when required, with the approval/authority from the Sangguniang Panlalawigan and 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,’ conclude the GGG Legal Team, Atty. RjQ Sepulveda.