Malacañang on Friday raised alarm over the “widespread problem” caused by PrimeWater’s deficiencies, tracing many of the utility’s controversial joint venture agreements (JVAs) to deals approved in 2019 when the Local Water Utilities Administration (LWUA) was under the Department of Public Works and Highways (DPWH) led by then-Secretary Mark Villar.
“We found a widespread problem caused by PrimeWater’s deficiencies,” said Presidential Communications Office Undersecretary Claire Castro.
“Most of these joint venture agreements were entered into in 2019, under the past administration, when LWUA was attached to the DPWH,” she added.
The issue was tackled in a high-level meeting between officials of LWUA, the Office of the Government Corporate Counsel (OGCC), and the Office of the President.
LWUA Administrator Jose Moises Salonga confirmed that their agency had concluded an investigation into PrimeWater’s JVAs and submitted initial findings during the meeting.
“Our investigation focused on numerous complaints involving PrimeWater’s joint venture agreements,” Salonga said.
“We have submitted our recommendations, findings, and possible ways forward,” he added.
Rather than dwell on accountability at this stage, Salonga said the priority is resolving the ongoing water supply issues affecting numerous districts.
“The important thing here is not finger-pointing or blame,” he said.
“What matters is how we get water to the people. The rest can follow,” he added.
Salonga added that all possible solutions were discussed, and the agency expects to begin implementing remedial measures shortly to meet its mandate.
The probe also reviewed the origins of the JVAs, including how many of them were unsolicited and appeared to contain “disadvantageous” provisions repeatedly flagged in audit reports.
“The report addresses those concerns and puts involved individuals on notice,” Salonga said.
‘Reforms and corrections should follow within the next few days,” he added.
PrimeWater, a private utility firm owned by the Villar family, has faced mounting criticism for poor water service quality, questionable contract terms, and lack of accountability in several local water districts.