The Department of Justice on Monday debunked the insinuation of opposition Senator Francis Pangillinan that the government will force water concessionaires to accept the new contracts sans the so-called “onerous” and “highly disadvantageous provisions.”
Justice Secretary Menardo Guevarra assured that concessionaires Maynilad and Manila Water will be given ample opportunity to comment on the proposed amendments in the water concession agreements which are intended to protect the consuming public from the “profit-seeking capitalists.”
“These proposed new contracts will not be absolutely imposed upon the water concessionaires, as they will be given a reasonable opportunity to comment on the proposed amendments in an open and public discussion of the issues,” Guevarra said, in a text message.
“These proposed new contracts intend to remove all illegal provisions and foster greater transparency and equitability in rate-setting, and should therefore provide a more stable and comfortable environment for investors,” he added.
Guevarra said that “it is the consuming public, not the profit-seeking capitalists, who need more protect by the government.”
Nonetheless, Guevarra emphasized that the government takeover or nationalization of water distribution as mandated by the 1987 Constitution is the state’s last option, should the proposed amendments to the concession agreements will not be accepted by Maynilad and Manila Water.
“Government takeover or nationalization of water distribution, as authorized under Sections 17 and 18, Article XII of the Philippine Constitution, is the government’s last option,” the DOJ chief said.
According to Guevarra, the government initiated the move to amend the concession agreement because “it is the government officials and officers of the water concessionaires who crafted, entered into, and implemented these highly disadvantageous contracts, not the investors, who were threatened by (President Rodrigo Duterte) with possible criminal prosecution.
Pangilinan earlier warned that forcing investors to accept a contract drawn up by the government is a crime
Besides, the opposition leader said imposing the new concession agreements crafted by the government will drive away investments that create jobs.
“Threatening investors with imprisonment should they refuse to accept a government-imposed contract is criminal behavior under our Revised Penal Code,” Pangilinan said.
“Coming as it does from the highest office of the land sends the terrible signal to all investors whether foreign or local that they too can be imprisoned without bail should they disagree with the powers that be,” he said.
Duterte earlier said the government will present to the two water concessionaires new contracts without the onerous provisions, including those that pass taxes on to customers, for them to accept or not.
If Maynilad and Manila Water will not accept the new contracts, the government will take over the water operations in their respective concessions, the President said.
However, the President also said accepting the new contracts does not mean officials behind the onerous provisions will not be prosecuted.