Vice President Leni Robredo should not meddle with President Rodrigo Duterte’s tough stance against water concessionaires, Malacañang said Monday, saying “she does not know anything.”
This came after Robredo on Sunday said the government should pursue a “calmer” approach as the President’s verbal attacks against Maynilad and Manila Water might impact investments.
“Don’t meddle into something you don’t know about. I don’t think she knows anything about it,” Presidential Spokesman Salvador Panelo said.
During her radio program, Robredo noted the government’s tirades against water firms had caused their stocks to dip, which may negatively impact the investments of the Social Security System and the Government Service Insurance System.
Robredo added that foreign direct investments might drop due to the President’s threats of lawsuits against the two water utilities and government takeover of water operations.
“If we don’t pursue calmer talks, this would leave a lot of collateral damage,” she said.
Duterte has repeatedly lambasted the two water firms over “onerous provisions” in the 1997 water concession agreement which he said were unfair to the government and Filipino consumers.
The contract carried a provision that says the government should pay the water concessionaires for their losses that result from the actions of the state regulator during the effectivity of contract.
The government cannot interfere either with water rates, as stated in the agreement.
These provisions allowed the two companies to take the Philippine government to a Singapore-based arbitral tribunal which ruled that the state had to pay Maynilad P3.4 billion and Manila Water P7.4 billion for their respective losses. MJ Blancaflor
Panelo defended Duterte’s tirades against Maynilad and Manila Water, calling it “effective.”
“The President has made a stand and the stand appears to be very effective. She should know that,” Panelo said.
On Dec. 10, the two firms sent a letter to President Duterte, stating they agree to revisit and amend the provisions which earned the ire of the Chief Executive.
The letters were signed by business tycoons Manuel Pangilinan and Fernando Zobel de Ayala.
Pangilinan’s Metro Pacific Investments Corp. owns a controlling stake in Maynilad while Manila Water is a subsidiary of Ayala Corp.
