Duterte urged to compel water firms to pay P2 billion fine

MANILA, Philippines — An independent lawmaker yesterday called on President Duterte to compel the country’s largest water concessionaires to pay the P2-billion fine the Supreme Court slapped on them for violating the Clean Water Law. 

“The two water suppliers should first acknowledge their violations of the Clean Water Act and pay the fines they owe the government. This is not just about the money. This is also about enforcing penalties to strengthen their deterrent function against potential future violators of the law,” Rep. Lito Atienza of Buhay party-list said in reference to Manila Water Co. and Maynilad Water Services Inc.

 Atienza, a former Manila mayor, insisted that this should be made a pre-requisite before the government begins renegotiations for new concession agreements.

“We’ve had enough of big businesses flaunting the law simply because they have the wherewithal to drag cases out in court,” he said.

The SC fined the two firms P2 billion in August 2019. 

“The government has to send across the harsh message that all businesses are expected to live up to certain standards of conduct and ethics that include voluntary compliance with our environmental protection laws,” he said. “We cannot imagine the government discussing new concession pacts without some form of settlement or resolution of the two water firms’ continuing violations of the Clean Water Act.”

Justice Secretary Menardo Guevarra revealed last week that the government might begin the renegotiations for a revised concession agreement with the water providers next month.

Meantime, efforts exerted by the Asian Development Bank to help the Duterte administration craft a new concession agreement for Maynilad and Manila Water have been lauded by the Chief Executive’s allies in the House of Representatives. 

“This is brilliant and gives credence to the social, financial and legal considerations given ADB’s experience and credibility. No one can claim that they were bullied in accepting the necessary changes,” Rep. Mike Defensor of party-list Anakalusugan said.

“I am positive that the amendments that President Duterte wants will be accomplished since both were amenable to amend the provisions such as doing away with charging consumers with corporate income tax, the non-intervention of government,” Defensor, who heads the House committee on public accounts, added. 

Guevarra disclosed that Finance Secretary Carlos Dominguez III told him that ADB consultants will be helping out in the water concessionaire issue, more particularly on the alleged “onerous and disadvantageous provisions” in the contract. 

“I think we can come up with better arrangements, as this process will also serve as some sort of audit of the current deal,” Albay Rep. Joey Salceda, chairman of the powerful House committee on ways and means, said. “We expect that the involvement of a professional and dependable partner like the ADB would enable both the government and the concessionaires to arrive at a deal that is both equitable and efficient in delivering the intended public welfare outcomes.”

He pointed out this will redound to the benefit of the combined 16 million consumers of the two water firms. 

Salceda, who chairs the House committee on ways and means, said the ADB is also a good-faith partner of the government in ensuring that the terms of agreement are equitable and efficient, as it has always been a steady supporter of addressing Metro Manila’s water woes.

The Bicolano lawmaker said the ADB “already supported the government with value-adding projects like the Angat Water Supply Optimization Project, the Manila South Water Distribution Project and the Umiray-Angat Transbasin Project.”

For her part, Rep. Precious Hipolito-Castelo said “everything is worth a try,” explaining that ADB is “a reputable international bank extending development loans to developing countries so they deserve the benefit of doubt.”

“No harm in exploring anything. We just hope the final recommendation will be reflective on the interest of the people – no pass on taxes and increase of tariff to consumers. All recommendations are subject to review,” the neophyte lawmaker added.