PRESIDENT Duterte said he is keen on meeting with the officials from Manila Water and Maynilad, as well as the government lawyers who were behind the 1997 water concession agreements, which the Department of Justice described as “onerous.”
The Chief Executive has also reiterated this threat that those behind the government contracts with the water concessionaires are liable for “economic plunders.” Prior to this, Duterte accused them of committing economic sabotage.
The President said it was “unfortunate” that the alleged onerous water concession agreements were in effect for two administrations.
“The matter will not be resolved until I get to talk to the water concessionaires. I want the government lawyers who crafted the contracts to join us,” he said in a speech during the oath-taking of newly appointed generals and flag officers of the Armed Forces of Philippines and star-rank officers of the Philippine National Police in Malacañang on Monday.
However, the President said in the same speech that he is not open to a compromise with the water concessionaires. “The P7.4 billion [that government needs to pay Manila Water], how can you resolve that? How will I compromise? [If I make a compromise] that’s economic plunder,” said Duterte. “How can I tell the people that as President, I agreed to a settlement?”
The President has been lambasting the water concessionaires after the Permanent Court of Arbitration (PCA) in Singapore ordered Manila to pay east zone concessionaire Manila Water P7.4 billion for the non-implementation of water-rate increases that occurred prior to his presidency. The PCA had also ruled on a similar case filed by west zone concessionaire Maynilad Water Services Inc., ordering the State to pay P3.4 billion for Maynilad’s losses from March 2015 to August 2016.
Amend, not rescind
Malacañang on Sunday said the President has not made an order to rescind the deals, pointing out that the Chief Executive wants the contracts amended to remove onerous provisions.
The Palace has since stood firm that the government will not pay the P10-billion compensation to the water concessionaires since the decision stemmed from onerous deals.
Manila Water is a publicly listed company and a subsidiary of Ayala Corp., while businessman Manny Pangilinan’s Pacific Investments Corp. owns a controlling stake in Maynilad.
Image credits: AP/Bullit Marquez