SC upholds P2-billion fine on MWSS, water firms

MANILA, Philippines — The Supreme Court (SC) has affirmed the P2 billion in penalties imposed on the Metropolitan Waterworks and Sewerage System (MWSS) and its two concessionaires for failure to comply with environmental laws.

In a regulatory filing, the Metro Pacific Investment Corp., parent firm of west zone concessionaire Maynilad Water Services Inc., said the SC upheld with modifications the decision of the Court of Appeals finding the three parties guilty of violating the Clean Water Act.

In a separate filing, east zone concessionaire Manila Water Co. said it has received a copy of the SC decision.

The law mandates the MWSS, as the government agency tasked to provide water and sewerage services, and the concessionaires in Metro Manila and other cities to connect existing sewage lines to the available sewerage system within five years from the law’s effectivity in 2004.

The high court ordered the concessionaires along with the MWSS to pay P921.4 million for the period May 2009 to August this year.

The amount should be paid within 15 days from the time the court decision becomes final.

In addition, the MWSS and the concessionaires would pay an initial amount of P322,102 per day, subject to a 10 percent increase every two years until full compliance with the law.

A six percent interest will be imposed on the total amount of fines should there be a delay in the payment.

Maynilad plans to file a motion for reconsideration before the SC on or before Oct. 2.

Manila Water said it would also exercise its legal options.