During the House inquiry on water concession agreements, Manila Water and Maynilad announced that they will no longer implement the approved arbitration ruling obliging the government to pay them.
During the House inquiry on water concession agreements, Manila Water and Maynilad announced that they will no longer implement the approved arbitration ruling obliging the government to pay them.Manila Water also confirmed that they will no longer implement the planned increase on water rate next year and as for Maynilad, it said it is “open” to defer the implementation of the new rates.
In a House hearing on Tuesday, December 10, Manila Water President Rene Almendras said the water firm will no longer pursue the PHP 7.4 billion indemnifications that the Singapore Permanent Court of Arbitration granted last November.
On the other hand, Maynilad President Ramoncito Fernandez also said the company will no longer pursue an arbitration ruling from the same court, which granted them PHP 3.4 billion.
Earlier, President Rodrigo Duterte threatened to file a case of economic sabotage against Manila Water and Maynilad due to their “onerous” 1997 contracts with the government.
“We will expose them and I will insist that they are tried for economic sabotage. I will file this, economic sabotage, and I will arrest them all. I will let them taste of a prisoner’s life,” said President Duterte.
President Duterte also said that he is willing to go down for his latest action but would drag down the “oligarchs” with him.
“Gusto ko lang malaman ng Pilipino bago ako matapos, kailan man ‘yan, bukas or I may or I may not complete my term. It could be tomorrow, it could be day after. ‘Pag gusto ko lang malaman ng mga Pilipino that may dumaan na Presidente who really loves his countrymen, kayo,” he added.
Meanwhile, Justice Secretary Menardo Guevarra called the companies’ decision “a very positive development.”
“Although the President has said that the government will not pay these arbitral awards, at least during his term anyway, this gracious manifestation on the part of the water concessionaires nonetheless removes a potential liability from the books of account of the government,” said Secretary Guevarra.
“But as I said before, the issue of paying the arbitral award is not as important as ensuring that disputes arising from burdensome provisions of the water concession agreements will never happen again in the future,” he added.
The MWSS said it has formed a technical working group that will review the concession agreement.
Both Manila Water and Maynilad will sit down with that panel.
Source: PTV
