Duterte tags Ayala, Pangilinan for corruption, syndicated estafa

President Rodrigo Duterte on Monday accused the chairpersons of Manila Water and Maynilad of corruption in connection with what his administration called "onerous" water concession contracts.

In a speech, Duterte indicated that violations of the Anti-Graft and Corrupt Practices Act could be found in the concession agreements signed in 1997.

"‘Yung nagtatanong kayo, saan ‘yung big fish? Saan ‘yung mga corruption, saan ‘yung malalaki? O, i-deliver ko na sa inyo ngayon. Si Ayala pati si Pangilinan," Duterte said during his visit to earthquake victims.

"‘Pag nagkamali ‘yang gagong ‘yan, ipapakulong ko talaga sila. Kita mo maski anong insulto ko, hindi na sumasagot. Sigurado swak sila. Syndicated estafa,” he added.

In another speech at the anniversary of the Cor Jesu College in Digos City, Duterte said, "Kapag hawakan mo 'yung Anti-Graft and  Corrupt Practices Law tapos 'yung kontrata nila, all the provisions of the Anti-Graft Law can be found in the contract."

Fernando Zobel de Ayala is the chairman of Manila Water while Manuel V. Pangilinan is the chairman of Maynilad.

GMA News is still trying to reach the camps of Ayala and Pangilinan for comment.

A Singapore-based arbitration court has ordered the Philippine government to pay Maynilad around P3.6 billion and Manila Water P7.4 billion as compensation for losses or damages the companies incurred based on the liability clause.

But the companies decided not to pursue their respective arbitral awards after Duterte unleashed a series of tirades against them.

They will instead coordinate with the government to review the supposedly onerous terms in the concessions deals.

“That contract is null and void from the very beginning. They control water, they are just distributors," Duterte said.

"In that contract the Philippines surrendered its sovereignty by allowing these concessionaires to control when there should be an increase. Sila ang may hawak sa faucet,” he added.

Duterte said the water concessionaires apologized to him because they knew they were at fault.

“Nakita mo sila tahimik talaga, puro apology. Sa akin dito, there is a violation of law, a crime has been committed, you cannot reform that contract. Right at the beginning, it is null and void,” Duterte said.

He also reiterated his threat to arrest the owners of the water concessionaires.

“Sabi ko sa kanila ayusin nila ito. Kapag magkaso kaso sila, kapag mag file sila ng kaso diretso na, file sila sa Supreme Court. I will declare a suspension of the writ of habeas corpus and I will arrest all of them," Duterte said.

"I want billionaires inside the prison,” he added.

In October 2018, Maynilad Water Services Inc. scored victory at the High Court of Singapore over the P3.44-billion compensation it sought from the government for revenue losses as a result of the unimplemented water rate adjustment.

Maynilad said the decision became final after the government opted not to take the case to the Court of Appeal, the upper division of Singapore’s Supreme Court.

The arbitration court also recently ordered the Philippine government to pay P7.39 billion to Manila Water also for losses incurred because of disapproved rate increases.

Duterte repeatedly refused to pay the amount. —NB, GMA News