Palace: Gov’t execs aided ‘onerous’ contract with water firms

MANILA, Philippines — Malacañang on Wednesday claimed that some government officials had helped craft the allegedly “onerous” contract with water concessionaires Manila Water Co. and Maynilad Water Services Inc.

“It is apparent that some members of the government have not only looked the other way but have in fact purposely guided the hands of those who have raped our economy for their own personal aggrandizement,” presidential spokesman Salvador Panelo said in a statement.

“Worse, they are hell-bent on bleeding our country dry. The proper delivery of basic services has not been fostered but thwarted to the outrageous detriment of the Filipinos,” the Palace mouthpiece added.

Recently, President Rodrigo Duterte slammed the owners of water companies for allegedly milking billions from the people and the government over the disadvantageous 1997 water contract.

Maynilad and Manila Water distribute water in Metro Manila and nearby provinces under agreements signed with the Metropolitan Waterworks and Sewerage System (MWSS) during the Ramos administration in 1997.

But the Department of Justice (DOJ) recently found out that a dozen of “onerous” provisions were stipulated in the deal.

DOJ reviewed these contracts during the height of the water crisis earlier this year.

In line with this, Duterte has ordered the filing of appropriate criminal, civil, and administrative charges against all those involved in the said agreements including the firms’ owners and their legal counsels, as well as agents and lawyers of the government for economic sabotage, Panelo said.

The Palace official warned that those who will impede or derail the President’s directive will “find themselves behind bars with free food and lodging.”

The Permanent Court of Arbitration in Singapore has ordered the Philippine government to pay the Ayala family-owned Manila Water P7.39 billion to compensate it for losses suffered between June 2015 to November 2019. Last year, the government was also ordered to pay Maynilad P3.4 billion by the same Singaporean court due to the Philippines’ refusal to allow it to increase prices from 2013 to 2017.

Among the deals’ provisions that DOJ flagged as disadvantageous was the prohibition against government interference in setting rates and the provision for indemnity for possible losses in the event of government interference.

On Tuesday, a furious Duterte said the deal treated water not as a natural resource but as a commodity.

“Under the Constitution, all-natural resources of the Philippines, including water, belong to – and are owned by – the State. It is indisputable that water is intended for the use, enjoyment, and welfare of the citizens,” Panelo insisted.

“The use and delivery of water are impressed with public interest hence it is but a privilege and therefore must not be abused,” he added.

However, the water concessionaires, according to Panelo, “have not only abused the arrangement of delivering and distributing the State-owned water to the citizens but have treated the same as a commodity and a money-making venture, instead of considering it as a public service.”

Duterte has directed DOJ and the Office of the Solicitor General to draft a new deal that is favorable to the State and the Filipino people, Panelo noted.

Edited by KGA