Ferdinand M. dela Cruz is stepping down on Aug. 31 as president and chief executive of Manila Water Co. Inc., which has not yet fully recovered from a supply shortage that started last March.
Also, Manila Water yesterday announced that Rene Almendras is returning as president and CEO, having been elected by the firm’s board to the post he vacated when he was appointed to the Cabinet during President Benigno Aquino III’s term.
The Ayala group’s water business platform said Dela Cruz resigned yesterday but did not share the reasons.
At the height of the supply problem and during congressional hearings last March, Dela Cruz suggested to committees at both the House of Representatives and the Senate his resignation from the embattled company would not help alleviate the situation.
“(I)f my resignation today will not only erase our supply deficit but also resolve to a united front to urgently build new water sources, then I would be extremely happy to resign at this moment,” he said back then.
Manila Water’s board accepted Dela Cruz’s resignation and elected Almendras, who is currently chair of the company’s executive committee and will take over on Sept. 1. Dela Cruz became president and CEO in April 2017.
In a statement, Jaime Augusto Zobel de Ayala, chair and chief executive of parent firm Ayala Corp., said the group—where CEOs usually serve for six to 10 years—was a great believer “in shifting responsibilities and allowing change to happen.”
“In many cases, we’ve had people come to us and say why are you changing when they are doing such a good job,” Zobel said. “That’s part and parcel of our culture and that’s what we are used to allowing a succession to take place.”
He said Dela Cruz has been leading the company for a significant amount of time and that it was felt that a change in leadership was appropriate.
“To be fair to Rene Almendras, he was actually the CEO but the past administration invited him to leave us and join the administration so his term was cut short,” Zobel added. “He’s always had the passion for it, so when we talk about succession and perhaps a change in leadership, he came to mind and I think he’ll provide great leadership at a time like this.”