Maybe MWSS should be abolished

The revelation of P-Noy during his SONA that MWSS officials have been enjoying lavish perks to include getting over 30 months equivalent salary each year has shocked many of us. MWSS officials were quick to defend themselves by saying everything is legal. But that’s not the point. It isn’t moral specially at this time when the subscribers to the water services are trying hard to make ends meet and can benefit from lower rates.

Employees of MWSS were also justifying their excessive perks when interviewed on TV Patrol by claiming that none of those perks came from the National Treasury. Their costs are being carried by the two private sector concessionaires. They present a budget to these companies every year and there is nothing Maynilad and Manila Water can do but to fund the budget.

In the end, it is us, the water consumers who pay all those lavish bonuses and perks. The concessionaires factor in these funds as part of their operational costs which, in turn, are made part of the basis for the water tariff that is adjusted every five years. In other words, we could be paying cheaper water bills. Or maybe, the concessionaires could have more ready funds for improving the system to include reducing water lost due to broken pipes and to expand the reach of the system.

The other thing that comes to mind is the question of whether we still need MWSS. The regulatory part of the work is carried by another agency, MWSS Regulatory Office or MWSS-RO. That’s a pretty lean organization that has the responsibility of checking the performance of Maynilad and Manila Water. There should be no problem keeping this one.

I am at a loss on what MWSS still does that’s useful to the public. If it is about planning future sources of water, managing the La Mesa watershed and awarding projects like the Laiban dam… that could be done by the National Water Resources Board (NWRB).

It could very well be that the MWSS still exists out of habit, a carry over from the past when they used to do what the private concessionaires are doing now. The ownership of the water system now lodged with MWSS can also be turned over to the NWRC and the MWSS RO can become an even more independent regulator.

Maybe P-Noy can see if we can abolish MWSS with no loss of benefit for the public. We can offer an attractive separation package to its 200 officers and staff. The one time expense should be easily recovered, given their over 30 months a year take home pay plus other benefits. I suspect the MWSS has become a kind of sacred cow through the years because politicians recommended the hiring of staff and most end up staying there until retirement whether or not they are useful.

Abolishing MWSS is not really unusual. The other week, I saw a feature also on TV Patrol where the Napocor staff expressed resignation on the inevitable abolition of the once large government corporation once all their power plants have been privatized. The other assets and liabilities of Napocor have been transferred to the PSALM leaving Napocor pretty much a shell company. And MWSS is in the same situation… a shell company with nothing more to do that could justify spending any money on it.

The problem with government agencies is that once established, it is extremely difficult to dissolve them even after they have outlived their usefulness. In MWSS and Napocor, both utilities, we have prime examples of agencies that we no longer need. It will take extreme political will to dissolve both agencies but it is the only way to go if P-Noy is to follow through with the logical conclusion of a serious anomaly he denounced in his SONA.

Anti money laundering

If P-Noy is serious about finding the truth behind the anomalous deals of the Arroyo administration, he will have to do something about making the Anti Money Laundering law more than a paper tiger… giving it more teeth. Former Chief Justice Art Panganiban has written an opinion piece that says the law had been de-fanged by the Supreme Court in a recent decision. It is time for the administration to ask Congress to put the fangs back.

The Supreme Court, according to Mr. Panganiban, ruled that courts must first notify the account holders and conduct a hearing on the application, during which the latter may interpose their objections. “With due respect,” Mr. Panganiban wrote, “I think the Court defanged the bank inquiry tool because the depositor, once alerted, will not only resist the government’s inquiry, but will surely empty the account too.”

A stronger AMLA is necessary not only to comply with international covenants but it is essential if P-Noy is serious about fighting corruption. The problems surrounding NAIA 3 can be resolved quickly if the Anti Money Laundering Council or AMLAC is able to follow the trail of bribes uncovered by forensic accounting already done by a respected financial expert, ironically enough, appointed by the former President.

The findings were however ignored and the expert resigned in disgust when the previous administration started to stonewall. Her findings explain why after she gave the results of her financial sleuthing, the government tried very hard to lose the arbitration case in Washington DC. Luckily the case was so strong and the Philippine panel headed by former SC Justice Florentino Feliciano was so good that we won that case anyway.

Yet, nothing happened on the ground here. NAIA 3 remains problematic even if it is partially being utilized now by Cebu Pacific. It is such a waste not to fully use it now given the pretty bad conditions of NAIA 1.

This is another instance when P-Noy should not only get concerned. He should do something as quickly as possible. And just to show he is ready to set the example, maybe P-Noy and his Cabinet members can make a declaration that they are waiving their bank secrecy rights even before Congress passes a new law. I think it was Mar Roxas who said he was ready to do this. He didn’t win but I hope those who are now in power will adopt it anyway.

I find the officials of our Anti Money Laundering Council to be pretty professional. But their problem before P-Noy took power was that they were not being supported by the Arroyo administration. On the contrary, they were being prevented from doing their work, I guess, for obvious reasons.

I remember one of them saying that they hope to finally be able to get their work done after the term of Ms. Arroyo. Well, that time is now. Let’s get cracking, fellas!

It’s all in the presentation

This one’s from Lal Chatlani,

Jack and Max are walking from religious service.

Jack wonders whether it would be all right to smoke while praying. Max replies, “Why don’t you ask the Priest?”

So Jack goes up to the Priest and asks, “Priest, may I smoke while I pray?”

But the Priest says, “No, my son, you may not. That’s utter disrespect to our religion.”

Jack goes back to his friend and tells him what the good Priest told him.

Max says, “I’m not surprised. You asked the wrong question. Let me try.”

And so Max goes up to the Priest and asks, “Priest, may I pray while I smoke?”

To which the Priest eagerly replies, “By all means, my son…by all means.”

Boo Chanco’s e-mail address is [email protected]