SC slaps fine totaling P1.84B vs Maynilad, Manila Water and MWSS over lack of sewage lines

MANILA, Philippines (Updated: August 7, 2019, 4:31 p.m.) — The Supreme Court slapped a fine of P921 million against Maynilad Water Services Inc. and the Metropolitan Waterworks and Sewerage System and another P921 million against Manila Water Co. Inc. and MWSS for not building enough sewage lines thus violating the Philippine Clean Water Act.

SC spokesperson Brian Hosaka, in a statement sent to reporters, said Tuesday that the en banc voted to dismiss the petitions respectively filed by Maynilad, Manila Water and MWSS.

It was initially reported that the SC voted 14-0, but Hosaka clarified Wednesday that the court had voted 12-0. Associate Justices Diosdado Peralta and Andres Reyes Jr. did not take part in the deliberation of the cases.

Hosaka said the high court upheld the decision of the Court of Appeals and found Maynilad, Manila Water and MWSS liable for the violation of Section 8 of the Clean Water Act. The said provision pertains to domestic sewage collection, treatment and disposal.

It provides: “Within five years following the effectivity of this Act, the Agency vested to provide water supply and sewerage facilities and/or concessionaires in Metro Manila and other highly urbanized cities (HUCs)... shall be required to connect the existing sewage line found in all subdivisions, condominiums, commercial centers, hotels, sports and recreational facilities, hospitals, market places, public buildings, industrial complex and other similar establishments including households to available sewerage system.”

“Maynilad shall be jointly and severally liable with the MWSS for a total amount of P921,464.184 covering the period of May 7, 2019 to date of promulgation,” Hosaka said.

“Manila Water Co. Inc shall be jointly liable with MWSS for the same amount and period,” the SC also said.

The fine shall be paid within 15 days from the receipt of the ruling.

“From receipt of decision until Petitioners have fully paid the amount, petitioners shall be fined the initial amount of P322,102,000/day, subject to further 10% increase every two years... until full compliance with Section 8 of the same law,” the SC added.

This means that until Maynilad, Manila Water and MWSS have fully complied with the law, they are directed to pay the fine of P322,000 each day.

A legal interest of 5% per annum will also be imposed until they fully complied with the law, the court added.

A full copy of the decision has yet to be made public as of this story’s posting.

Associate Justice Ramon Paul Hernando penned the ruling. — Kristine Joy Patag