Initial effort lang from this corner to provide context and background to Duterte’s latest rant. (Mamaya na ang irony of his oft-repeated rants at the “oligarchy”. Btw, I bear no love for the oligarchs, old and new.)
Manila Water muna.
WHAT SPARKED THE RANT?
Offhand, this has roots in the recent loss of the Philippines in international arbitration, which the Ayala Corp, which controls Manila Water, disclosed to the Philippines Stock Exchange on Nov 29.
“The Permanent Court of Arbitration (PCA) in Singapore ruled in favor of Ayala-led Manila Water and directed the Philippine government to pay the company P7.39 billion for the non-implementation of rate hikes.”
“Manila Water said the tribunal ordered the payment to represent the company's losses from June 1, 2015 to November 22, 2019, as well as the amounts ρáíd to the PCA and 85% of other claimed costs.” — Rappler report You do not have permission to view the full content of this post. Log in or register now.
Manila Water sought arbitration in 2015 (President Aquino’s time). Just to make that clear. They won the contract during Ramos’ time.
But WAIT!
The MWSS under Duterte approved new water rates for the company!
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You do not have permission to view the full content of this post. Log in or register now.
As for the suplay crisis and the water treatment: Manila Water said in April this year that it would not pass on to consumers fines imposed on them. (Dapat lang!)
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* Manila Water faces P1.13 billion in penalties over supply crisis
“The amount we’re going to pay are large but when we discussed it with the board, we basically decided its probably more important to just accept it and move forward,” Ayala Corp. president Fernando Zobel de Ayala said during the company's annual stockholders' meeting.
“I think it's best we pay the fine. It would not be passed on to consumers, we will have to absorb it as a company and we move forward from here,” he added.
But WAIT!
Manila Water threatened consumers with rate hikes if it had to pay fine as ordered by the Supreme Court! This was in October this year.
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That threat was due to this:
“Manila Water and Maynilad Water Services were fined more than P921 million each by the SC for not complying with the Philippine Clean Water Act. The Metropolitan Waterworks and Sewerage System (MWSS) was held jointly liable with the two firms.
An additional P332,102 per day was also ordered to be imposed until the parties settle the fine.” (In this Rappler story, the first sounds terrible You do not have permission to view the full content of this post. Log in or register now. )
The Supreme Court decision in August upheld the CA 2011 decision You do not have permission to view the full content of this post. Log in or register now.
In response to this threat — let’s call a spade a spade — MWSS said
it will not allow Manila Water Co. Inc. and Maynilad Water Services Inc. to include in water rate adjustments the fines imposed by the Supreme Court.
GMA report notes:
“MWSS Chief Regulator Patrick Ty told reporters that the regulatory office will tap a third party audit firm to check the financial books of both water concessionaires to ensure that the cost of fines slapped by the high court will not be passed on to consumers.
Ty said any attempt to conceal the fines and make the customers shoulder the payments, “We will automatically strike that of.”
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But then comes the arbitration decision ruling against the government, saying it should pay Manila Water for the water rate hikes previous admin had nixed.
Hanggang dito lang muna. Still poking at various issues related to this.
Manila Water muna.
WHAT SPARKED THE RANT?
Offhand, this has roots in the recent loss of the Philippines in international arbitration, which the Ayala Corp, which controls Manila Water, disclosed to the Philippines Stock Exchange on Nov 29.
“The Permanent Court of Arbitration (PCA) in Singapore ruled in favor of Ayala-led Manila Water and directed the Philippine government to pay the company P7.39 billion for the non-implementation of rate hikes.”
“Manila Water said the tribunal ordered the payment to represent the company's losses from June 1, 2015 to November 22, 2019, as well as the amounts ρáíd to the PCA and 85% of other claimed costs.” — Rappler report You do not have permission to view the full content of this post. Log in or register now.
Manila Water sought arbitration in 2015 (President Aquino’s time). Just to make that clear. They won the contract during Ramos’ time.
But WAIT!
The MWSS under Duterte approved new water rates for the company!
You do not have permission to view the full content of this post. Log in or register now.
You do not have permission to view the full content of this post. Log in or register now.
As for the suplay crisis and the water treatment: Manila Water said in April this year that it would not pass on to consumers fines imposed on them. (Dapat lang!)
You do not have permission to view the full content of this post. Log in or register now.
* Manila Water faces P1.13 billion in penalties over supply crisis
“The amount we’re going to pay are large but when we discussed it with the board, we basically decided its probably more important to just accept it and move forward,” Ayala Corp. president Fernando Zobel de Ayala said during the company's annual stockholders' meeting.
“I think it's best we pay the fine. It would not be passed on to consumers, we will have to absorb it as a company and we move forward from here,” he added.
But WAIT!
Manila Water threatened consumers with rate hikes if it had to pay fine as ordered by the Supreme Court! This was in October this year.
You do not have permission to view the full content of this post. Log in or register now.
That threat was due to this:
“Manila Water and Maynilad Water Services were fined more than P921 million each by the SC for not complying with the Philippine Clean Water Act. The Metropolitan Waterworks and Sewerage System (MWSS) was held jointly liable with the two firms.
An additional P332,102 per day was also ordered to be imposed until the parties settle the fine.” (In this Rappler story, the first sounds terrible You do not have permission to view the full content of this post. Log in or register now. )
The Supreme Court decision in August upheld the CA 2011 decision You do not have permission to view the full content of this post. Log in or register now.
In response to this threat — let’s call a spade a spade — MWSS said
it will not allow Manila Water Co. Inc. and Maynilad Water Services Inc. to include in water rate adjustments the fines imposed by the Supreme Court.
GMA report notes:
“MWSS Chief Regulator Patrick Ty told reporters that the regulatory office will tap a third party audit firm to check the financial books of both water concessionaires to ensure that the cost of fines slapped by the high court will not be passed on to consumers.
Ty said any attempt to conceal the fines and make the customers shoulder the payments, “We will automatically strike that of.”
You do not have permission to view the full content of this post. Log in or register now.
But then comes the arbitration decision ruling against the government, saying it should pay Manila Water for the water rate hikes previous admin had nixed.
Hanggang dito lang muna. Still poking at various issues related to this.