(Eagle News)-President Rodrigo Duterte has asked Manila Water and Maynilad to accept the new water contracts that no longer contain provisions that are disadvantageous to the government.
Presidential Spokesperson Salvador Panelo said if the water concessionaires don’t accept the contracts presented by the Department of Justice in the 45th Cabinet meeting on Monday, he would nationalize water services.
“The Chief Executive is giving the water concessionaires the option of accepting the new contracts without any guarantee of not being criminally prosecuted together with those who conspired to craft the very onerous contracts which are void ab initio for violating the Constitution and the laws of the land,” Panelo said.
Earlier, President Duterte railed against Manila Water and Maynilad after the DOJ, which the President had ordered to look into the contracts following the water shortage in March 2019, found what it said were onerous provisions that include a ban on the government from interfering in the setting of water rates and a provision on indemnity should there be interference.
The DOJ also said the extension of the pacts way before they were set to lapse in 2037 was irregular.
Duterte also said the government would not pay Manila Water and Maynilad as ordered by a Singaporean court for alleged losses they suffered due to the government’s refusal to increase water rates.
Manila Water and Maynilad said they would no longer honor the arbitral award.
