Duterte’s approach on water concession deals ‘effective’

FILE: President Rodrigo Roa Duterte at the Arcadia Active Lifestyle Center in Davao City on June 6, 2019. JOEY DALUMPINES/PRESIDENTIAL PHOTO

MANILA — President Rodrigo Duterte’s tough approach in demanding for more favorable water concession agreements has been “effective”, Malacañang said on Monday.

Presidential Spokesperson Salvador Panelo shrugged off the recommendation made by Vice President Leni Robredo to pursue a “calmer” approach to avoid collateral damage.

“The President has made a stand and the stand appears to be very effective. She should know that,” Panelo said in a Palace briefing.

“Siguro ang advice natin kay VP Leni, wag mo nang pasukin iyong hindi mo alam (Perhaps our advice to Vice President Leni is don’t interfere on matters you have no knowledge about),” he added.

Duterte’s verbal attacks against water concessionaires and government lawyers started after the government was ordered by the Singapore arbitral tribunal to pay for damages acquired by the two water concessionaires — Maynilad and Manila Water.

He threatened to file economic sabotage cases against all involved in the crafting of the water deals and asked the Department of Justice and Office of the Solicitor General to craft new water concession agreements that are “favorable to the State and the Filipino people”.

Duterte also bared that he is considering ordering the military to take over the operations of water concessionaires in case of revocation of the two firms’ agreements with the national government.

He said he might be compelled to suspend the writ of habeas corpus.

Article 3, Section 15 of the 1987 Constitution stipulates that the writ of habeas corpus can be suspended, “in cases of invasion or rebellion when public safety requires it.”

In her radio program on Sunday, Robredo said Duterte’s tirades against water firms had caused their stocks to slump.

She warned that this may negatively impact the investments of the Social Security System and the Government Service Insurance System.

The Vice President also said foreign direct investments may decrease because it may appear that there is a lot of uncertainty in doing business in the country.

Robredo questioned why the administration waited for over three years to push for a renegotiation of water deals until the latest arbitral ruling in favor of Manila Water.

“Bakit pa hinintay na lumabas ‘yung desisyon na to? Bakit hindi gumawa ng mga hakbang noon pang 2016 para maayos (Why did they have to wait for this decision to come out? Why didn’t they take steps back in 2016 to fix this?),” Robredo said.

She also raised doubts about Duterte’s plan for military to take over the operations of water firms.

“Parang nakakalimutan natin in the first place kung bakit nandoon ‘yun sa private. Kaya siya binigay sa private kasi nung gobyerno ‘yung humahawak, palpak nga (It’s like we’re forgetting why it was given to the private sector in the first place. This happened because the government failed when it was in charge of water operations),” Robredo said.

Maynilad and Manila Water have written separate letters to Duterte, expressing their intent to review the alleged onerous provisions in the existing water concession deals.

The Metropolitan Waterworks and Sewerage System (MWSS) had revoked the approved 15-year extension of concession agreements with Manila Water and Maynilad that are supposed to expire in 2037.

This means the two firms only have until 2022 to operate since the 2009 resolution extending the 25-year concession deals signed in 1997 is already considered ineffective.

Duterte said he would leave it to MWSS Administrator Emmanuel Salamat to negotiate with the two firms.