Maynilad deal put on hold

The government has put on hold the agreement between the Metropolitan Waterworks and Sewerage System (MWSS) and Maynilad Water Services Inc. even as an opposition senatorial candidate filed a plunder case against President Arroyo in connection with the government’s takeover of Maynilad.

Justice Undersecretary Manuel Teehankee, the MWSS’ legal adviser, said yesterday the agreement will be improved through consultations with the Department of Finance, the National Economic and Development Authority and the Securities and Exchange Commission.

He assured the people that the terms of agreement will be fully disclosed to the public to quell speculations that it was a "bailout" or a "sweetheart deal."

Teehankee noted there will be consultations with consumers from the western portion of Metro Manila, the utility firm’s service grid, as well as with Maynilad employees to ensure that the agreement will be completely understood by all concerned parties.

Everything "will become available to the public to see and to judge for themselves that the terms of the Maynilad reorganization will be for the common good and for the good of the west zone consumers of Metro Manila," he told reporters.

"As soon as we are able to get the necessary permission (from the court), we will make public all the terms of Amendment No. 2 (within a day or two)," Teehankee added.

He said any constructive suggestions for the enhancement of the plan will be considered and submitted to the rehabilitation court, which set another deadline for all parties concerned — including Maynilad’s creditors — to study all the comments or suggestions for the reorganization.

The court gave interested parties 20 days, starting March 24, to submit comments and another five days for the government and Maynilad to submit their reply.

"During this week or so we will be consulting Maynilad employees, we will also be having briefings with Maynilad consumers. I think that the object and function of the government now is to gather constructive suggestions in order to improve or understand the quasi-reorganization plan as proposed," Teehankee said.

He explained that the terms of the agreement will be subject to the proper approval process and that "the final reorganization, if it happens, must pass through the rehabilitation court."

Teehankee maintained that the reorganization is beneficial to the government, unlike the rehabilitation plan proposed by Maynilad’s majority shareholders.

He said the government cannot afford to let Maynilad collapse since it will mean more losses for the MWSS and the water firm’s creditors.

"The government chose this option to make sure the delivery of water services to the people will not be hampered," Teehankee said.

Though the new Maynilad will have to shoulder the remaining debts of Benpres Holdings Corp. owned by the Lopez family, Teehankee said this will be manageable since the concession fees amounting to almost P8 billion will be fully paid as the private concessionaires admitted their liabilities and agreed to write off their shares.

More lawsuits

At the same time, three senatorial candidates of Raul Roco’s Alyansa ng Pag-asa are adding two more to the President’s growing number of lawsuits — now at 10 — all of them seeking to disqualify her from the May 10 presidential race.

After filing a graft case against Mrs. Arroyo, lawyer Melanio Mauricio, of Roco’s Alyansa ng Pag-asa, yesterday filed a plunder case against her and several other people in connection with the government’s takeover of Maynilad.

Two partymates of Mauricio, international bowling champion Bong Coo and Nicanor Gatmaytan, are filing an electioneering complaint against the President with the Commission on Elections today.

In his complaint lodged with the Office of the Ombudsman, Mauricio accused Mrs. Arroyo and the others — including officials of Maynilad and its parent company Benpres — of "conspiring, confederating and confabulating with one another, have unjustly enriched themselves to the damage and prejudice of the Filipino people."

"The unjust enrichment of the respondents consists in the deliberate refusal… to collect some P8 billion in concession fees from Maynilad," Mauricio said in his complaint.

The accused allegedly used their "official position authority, relationship, connection or influence to unjustly enrich himself or themselves."

Under a settlement reached two weeks ago, the government agreed to take over control of Maynilad from Benpres, which supplies the western half of Metro Manila.

Benpres will write off its $80-million investment used to put up Maynilad.

Critics say the government’s takeover meant shelling out taxpayer money to bail out the debt-saddled utility but Benpres insists there was nothing in the agreement about that.

Maynilad said it had difficulty paying its loans as well as debts it assumed from government regulator MWSS because it refused to allow Maynilad to raise water rates.

That prompted Maynilad to return its 25-year concession to the government in 2002, complaining that the MWSS failed to honor its commitments.

The government contested the complaint, forcing both sides to later reach a settlement rather than go through a lengthy court battle.

Coo and Gatmaytan, meanwhile, have accused Mrs. Arroyo of electioneering for allegedly requiring state-run colleges and universities to detail the administration’s achievements in graduation rites.

They said the directive is contained in a memo from the Commission on Higher Education, requiring school officials to read a message from Mrs. Arroyo detailing her achievements.

"It has no bearing or relation to the commencement exercises. It has no relevant message with respect to the graduation rites of students," they said in their complaint.

"As President, she really has a big edge over other presidential candidates. We hope she would not use her position and instead fight the legal and fair way."

Making a similar complaint, senatorial candidates Amina Rasul-Bernardo and Boots Anson-Roa, of Fernando Poe Jr.’s Koalisyon ng Nagkakaisang Pilipino, asked the Supreme Court yesterday to stop government agencies and government-run corporations from placing advertisements about Mrs. Arroyo’s achievements.

They say the ads give her undue advantage in the election campaign. "For the first quarter of 2003, total advertising cost for the government was only P15,176,260. For the same period this year — the campaign season — the amount has ballooned to an eye-popping P93,311,706," they said in their complaint.

Rasul and Anson-Roa have earlier filed an earlier complaint asking the Supreme Court to compel Mrs. Arroyo to go on leave during the campaign.

Malacañang dismisses the avalanche of legal complaints as baseless "nuisance suits" meant to give their complainants media mileage and combat their poor popularity with voters. — With Mike Frialde