The government has
announced that it will not pay water concessionaires Maynilad Water Services,
Inc. and Manila Water Co. billions of pesos worth of compensation despite the
ruling of the Permanent Court of Arbitration in Singapore.
Presidential Legal Counsel
and Presidential Spokesperson Atty. Salvador Panelo reiterated that the
government would not acknowledge the ruling because it is based on
"onerous" contracts.
“Hindi
kasi nga onerous ang kontrata. Masyadong disadvantageous sa
gobyerno (No, we won’t pay them because the contracts are onerous. It’s
too disadvantageous to the government),” Panelo said in an interview.
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“Meron tinatawag na mga kontratang labag sa public
policy. Pag ‘yan ay napatunayan ng hukuman, 'yan ay ina-annul (There are
contracts that are against public policy. If we can prove that in court, it
will be annulled),” he added.
Panelo
lamented how the privatization of water distribution in 1997 was “unfair” and
“one-sided.”
“Nagiging
problema kasi nga yung mga kumakatawan sa gobyerno hindi interes ng kanilang
pinaglilingkuran, interes ng kabila kaya ganyan ang nangyayari (The
problem is representatives of the government are not considering public
interest but personal interest. That’s why this is happening),” he said. “Yung
kontrata nakalagay dun pag sila’y nalugi for whatever reason e
kailangang bayaran natin sila. Saan ka naman nakakita (The contract says
that if the water concessionaires acquire losses for whatever reason, the
government has to pay. Where did you see such a contract)?”
The
Permanent Court of Arbitration in Singapore has ordered the Philippine government
to pay about PHP3.6 billion to Maynilad and recently, PHP7.4 billion to Manila
Water for the non-implementation of water rate increases and compensation for
losses and damages, respectively.
Manila Water is a
subsidiary of the Ayala Corp. while businessman Manuel V. Pangilinan’s Metro
Pacific Investments Corp. owns a controlling stake in Maynilad.
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Report from PNA
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