Manila Water appeals P30-M fine before SC

MANILA, Philippines - Ayala-controlled Manila Water Co. Inc. is appealing before the Supreme Court the imposition of P29.4 million in fines  by the Department of Environment and Natural Resources (DENR) in 2009 for violation of the Clean Water Act.

In a disclosure to the local bourse on Tuesday, the company said the Court of Appeals (CA) has denied the company’s motion for reconsideration filed on Sept. 26, 2012.

“Manila Water intends to file an appeal before the Supreme Court within the reglementary period,” said company chief legal counsel Jhoel Raquedan in the filing.

In August last year, the CA affirmed the decision of the DENR to impose a P29.4- million fine on the Metropolitan Waterworks and Sewerage System (MWSS) and its two water concessionaires Manila Water and Maynilad Water Services Inc. for violation of Section 8 of the Clean Water Act of 2004.

The fine covers the period May 7, 2009 to Sept. 30, 2009 on a P200,000 per day basis.

Section 8 of the law states: “Within five years following the effectivity of this Act, the agency vested to provide water supply and sewerage facilities or concessionaires or both in Metro Manila and highly urbanized cities as defined under Republic Act 7160, in coordination with local governments, shall be required to connect the existing sewerage line found in all subdivisions, condominiums, commercial centers, hotels, sports and recreational facilities, hospitals, market places, public buildings, industrials complex and other similar establishments including households to available sewerage system.”

The Environmental Management Bureau (EMB) – Metro Manila, Calabarzon (Cavite-Laguna-Batangas-Rizal-Quezon) and Central Luzon filed charges  against the MWSS for failing to install and maintain wastewater-treatment facilities (WTFs) within five years following the implementation of the Clean Water Act in May 2004.

The EMB said this affected the quality of water in the Meycauayan and Marilao rivers which drain into the Manila Bay.

In a 12-page decision of the CA First Division which was penned by Associate Justice Ramon Bato, the appellate court rejected the petition for review filed by Manila Water and affirmed the orders of the DENR Pollution Adjudication Board (PAB) dated Oct. 7, 2009 and Dec. 2, 2009 imposing a fine on the firms.

CA presiding Justice Andres Reyes, Jr. and Rodil Zalameda concurred with the decision.

In September last year, Manila Water filed a motion for reconsideration.

The company maintained that the DENR committed errors in the imposition of the fines and that there are legal and technical bases to question the imposition of the penalties.