Duterte threatens water firms: I will arrest you

President Rodrigo Duterte vowed on Tuesday to sue individuals over what he believed were disadvantageous concession agreements entered by the government with water companies Maynilad and Manila Water.

Duterte railed against a provision of the contracts that if the government interferes in the implementation of agreed water rates, the state will indemnify the utility company for any losses suffered.

The President said the people behind the contracts should be held liable for economic sabotage.

“I will arrest them. Patikim ko sila paano ang buhay ng preso. Kung pati ako isasali nila. Sasali ako doon sa presohan. Walang problema ‘yan,” he said in a speech in Malacañang.

“I will make their life hereon very, very, very miserable.”

Duterte tasked Finance Secretary Carlos Dominguez III and Solicitor General Jose Calida to craft a new concession agreement that would be advantageous to the government.

“Ibigay mo sa kanila. This is the amended contract. Accept it or nothing to it. Pero hahabulin ko talaga sila for economic sabotage,” the President said.

Duterte also accused Ayala-owned Manila Water of not paying corporate income taxes.

Manny Pangilinan-run Maynilad Water Services Inc. scored victory in October 2018 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 Ayala-led Manila Water also for losses incurred because of disapproved rate increases.

Maynilad and Manila Water are currently appealing a loss before the Philippines' Supreme Court (SC). They were ordered to pay fines of more than P921 million each for violating the Philippine Clean Water Act.

The SC ruled that the two companies failed to connect all existing sewage lines in establishments and households to an available sewerage system within the period set by law.

“Walang water treatment mga animal kayo,” Duterte said.

“Mag-usap tayo ng --‘pag hindi, tag-isang sampal kayo sa akin. Maniwala kayo. Patikim ko sa inyo. Pakita ko sa Pilipino paano mag-sampal ng mga milyonaryo, bilyonaryo.”

Duterte, in another speech in the Palace, slammed Senate Minority Leader Franklin Drilon anew over the latter’s statement in April urging the government to be careful in implementing his order to review all contracts entered into by the government.

Drilon had said that existing and binding contracts cannot simply be classified as onerous and cancelled, for doing so would represent a clear breach of contract.

“Senator Drilon, are you one of those who crafted the contract? I am asking you,” the President told newly-appointed government officials. —LDF, GMA News