Probe sought on ‘secret’ pact between Cadiz water district and Villar Group

BACOLOD CITY –– A former Negros Occidental congressman is asking President Duterte and the Ombudsman to investigate what he calls a “very anomalous” and “secretive” contract entered into by the Cadiz City Water District (CCWD) and PrimeWater Infrastructure Corp. of the Villar group.

“I am having my legal consultants look into the possibility of also filing cases against those involved, before the Ombudsman,” said former second district representative Manuel Puey on Thursday.

“I will use whatever resources I have to uncover whatever anomaly exists,” Puey added.

Puey, a resident of Cadiz City, said what he found very anomalous was that the agreement “was so secretive nobody knew anything about it.”

He spoke to John Solis, PrimeWater Business Division head for the Visayas, who confirmed that a contract was signed on Nov. 15.

On Wednesday, he demanded a meeting with the officers of PrimeWater and CCWD, and among those present were the water district’s general manager Jesus Pedro Zaldarriaga, chairman of the board Sergio “Acute” Tabanao, and director Angelo Vargas.

Puey said he did not know the contents of the contract since it was not made public during the meeting. No bidding was also conducted, he said.

He said the CCWD officials intimated that they entered into a service contract, but no details were provided.

“The water district officials are accountable to the people and should disclose what was contained in the contract they signed with PrimeWater,” Puey said.

Sought for comment, Zaldarriaga said CCWD followed the law when it entered into a joint venture with PrimeWater.

While no public hearing was conducted, Zaldarriaga said the joint venture agreement was published in a newspaper and was posted on a website for the public to see, in accordance with the law.

Cadiz Mayor Salvador Escalante said CCWD and PrimeWater would undertake a joint venture to improve the water distribution of Cadiz City.

The service capacity of CCWD was for 5,000 households 25 to 30 years ago. Today, it needs to serve 26,000 households.

PrimeWater has committed to infuse an initial P750 million into the joint venture, Escalante said.

He said he was informed by the CCWD officials that they followed the procedures required by law.

Escalante said Tubig Pilipinas has been providing water to four Yolanda relocation sites in Cadiz City with 4,000 houses for almost two years now.

He said Puey has a right to question the joint venture, but one thing was clear: Cadiz needs concessionaires to meet the expanding water needs of the city that CCWD could not provide.

Edited by LZB