Ayala, MVP not yet off hook

The two business groups would still have to return the fees that were alleged to be wrongfully collected from water consumers

Despite their billions-worth of assistance to COVID-19 response, the MVP and Ayala business groups are “not yet off the hook” over the alleged onerous provisions in their 1997 water concession agreement with the government, Malacañang said Thursday.

Presidential spokesman Harry Roque said the Metro Pacific-led Maynilad and Ayala-led Manila Water would still be held responsible for the deal which “violated every prohibited act in the anti-graft law” according to the Department of Justice and subsequently angered President Rodrigo Duterte.

“It doesn’t mean that just because they have helped to the tune of P6.5 billion and P9 billion that they are already off the hook,” he said.

Roque also said the two business groups would still have to return the fees that were alleged to be wrongfully collected from water consumers.

“The President still wants to amend the water concession agreement. What was taken from their consumers should be returned,” he said. “What disappeared was his determination to jail them because they were charging for a non-existent water treatment facility.”

He also bared that President Duterte had earlier asked him to file a complaint against the two utility firms over the supposed unfair provisions in the 22-year-old deal.

“We drafted it. We are prepared for filing, but COVID happened,” Roque said.

In December last year, President Duterte threatened to file economic sabotage, plunder and graft charges against the people behind the concession deals between the government and the two firms.

He also floated the idea of a military takeover of water distribution if the problem is not resolved.

The executives of the water firms sent a letter to the Palace, expressing their willingness to amend the provisions in the concession agreement.

The President later softened his stance against them when the coronavirus pandemic paralyzed the country and even called for cooperation of the private sector to address the health crisis.

But in his speech on Monday, he touted that he had “dismantled” oligarchs in the Philippines, including the Ayala family and tycoon Manny V. Pangilinan.

Virus shutters businesses

Meanwhile, the Department of Trade and Industry (DTI) on Thursday revealed that some 30 percent of businesses in the Philippines have closed since the coronavirus disease (COVID-19) pandemic hit.

In a statement, Trade Secretary Ramon Lopez said the agency has yet to determine if the establishments were fully or temporarily closed due to the virus that shuttered businesses in Metro Manila for 11 weeks, leading to the first contraction of the Philippine economy in 22 years.

Around 20 percent are fully operating while 50 percent have partially reopened, Lopez said and noted that of those who have partially resumed operations, the income of 90 percent were down.

“Many are probably still operating below breakeven but businessmen we spoke to said we need to continue fighting, we have no choice but to help each other in reopening the economy,” Lopez said.

The DTI chief explained that when Metro Manila began to reopen businesses in mid-May, the manufacturing index rose to 74 percent from 72 percent, while the purchasing managers index rose to 40 percent from 32 percent in April.

The purchasing managers index is a barometer of the manufacturing sector’s overall health.

“When we reopened we saw workers returning to their jobs and we were moving up,” Lopez said. “It’s like we hit rock bottom and now we’re moving upwards, so now we’re observing when we can return to our pre-COVID volume because that really is the big challenge.”