MALACAÑANG SAYS

Gov’t won’t pay Manila Water, Maynilad arbitration indemnity

Malacañang said on Thursday that the government will not indemnify concessionaires Maynilad Water Services Inc. and Manila Water Company Inc. as ruled by an international arbitration court in Singapore.

The concession agreements with Maynilad and Manila Water were onerous, said presidential spokesperson Salvador Panelo. So the government will not comply with the arbitration court’s decisions.

“Hindi. Kasi onerous nga ‘yung kontrata. Masyadong disadvantageous sa gobyerno,” Panelo said in a radio interview.

The Metropolitan Waterworks and Sewerage System’s 1997 agreements with the water concessionaires prohibit any government interference in rate-setting and provide an indemnity clause in case of such interference.

Justice Secretary Menardo Guevarra has said the provisions were the reasons why the government was ordered by an arbitration court in Singapore to pay Maynilad around P3.6 billion and Manila Water P7.4 billion as compensation for losses or damages.

“Mayroong mga tinatawag na kontratang labag sa public policy. Kapag iyan napatunayan ng hukuman, iyan ay ina-annul, nire-rescind,” Panelo said.

On Tuesday, an irate President Rodrigo Duterte accused the concessionaires of making billions of pesos from their customers while treating water as a commodity instead of public service.

He directed filing criminal charges against those behind the concession agreements, allegedly on grounds of economic sabotage.

The President also ordered the Department of Justice and the Office of the Solicitor General to draft and prepare new concession deals that are favorable to the government and the Filipino people. —KBK/VDS, GMA News