Duterte: No compromise before talks with water firm owners

MANILA, Philippines — President Rodrigo Duterte will not enter into a compromise with water firms until he has spoken with their owners and the government lawyers behind the concession deals that he claimed led to the "bargaining away" of Philippine sovereignty.

Duterte said the Philippine government has been ordered to pay billions to water concessionaires—after arbitration in Singapore—because of agreements that he described as "classic economic plunder."

"We surrendered our sovereignty to them. They (water firms) decide whether to raise or lower rates. When they raised the water rates, the regulator did not concur so...we paid P3 billion...Now (we are being asked to pay) P7 billion. How do you settle that?" the president said during the oath-taking of newly-appointed military and police officials in Malacañang on Monday.

"How will I compromise? That’s plunder. That’s the classic economic plunder. How can I now tell the people as a president, friends, ‘b****, let's just settle this.' Tell me. Tell me how to tell this to the people," he added.

Duterte to speak with concessionaires

Later in his speech, the president appeared to qualify his pronouncement, saying he won't settle for a compromise until he meets with the officials of water concessionaires and the state lawyers who drafted the concession agreements that he said were disadvantageous to the public.  

"Kaya gusto ko sila makausap, di ito maaareglo hangga't di ko makausap yung mga concessionaire, gusto ko harap ang abugado ng gobyerno na pu**** na naggawa nitong kontratang ito (I want to talk to them. This cannot be settled until I talk to the concessionaire. I want to do it in front of the government lawyers, those sons of b****** who crafted these contracts)," Duterte said.

Duterte has assailed Metro Manila water concessionaires Manila Water and Maynilad for allegedly abusing the deals they signed with the government in 1997 and has threatened to file plunder, graft, and economic sabotage charges against them.

Officials have said the agreements are "onerous" because they bar the government from preventing water rate hikes and allow water concessionaires to collect indemnities when they incur losses due to regulatory actions.

Duterte had directed the Finance department and the solicitor general to come up with a new agreement that is advantageous to the public and the government. Presidential spokesman Salvador Panelo clarified later on that the president is not seeking the rescinding of the deals but is pushing for the removal of provisions that are not favorable to the government.

Duterte slammed the water firms in response to separate rulings by a Singapore arbitration court which ordered the Philippine government to pay more than P10 billion in damages to Maynilad and Manila Water for the losses they incurred from the delayed implementation of rate hikes.

Duterte hits previous administrations

Duterte also chided two previous administrations for failing to stop the implementation of the contracts with the water firms.

"I cannot imagine two administrations allowing our sovereignty to be bargained away," the president said without elaborating.  

The water concession deals were signed during the time of former president Fidel Ramos.

Duterte also scored Sen. Franklin Drilon, who had urged the administration to be cautious in reviewing government deals.

"You know Senator Drilon, we are friends. I have high respects for you. But this time, I tell you, 'How dare you? How dare you tell me not to make any move or even to take a peek at the (contracts)...because we will be losing money. How dare you?" the President said.

What Drilon actually said in April 2019 was that the government cannot just declare a contract onerous and scrap it. He said contracts have provisions on how parties can abandon the agreement.

"The government must respect the sanctity of contracts. Otherwise, no country or entity would enter into contracts with us because we cannot be trusted to honor our obligations," he said then.

Duterte jokes about killing water firm owners

The president also urged the military and the police on Monday not to allow water concessionaires to steal "trillions" from the public. "

"If my destiny says that hanggang diyan lang ako, hanggang diyan lang ako (I will only reach that point, then I will only reach that point). But hingiin ko lang sa inyo itong, trillion ‘yan kaya nag hingiin ko sa military and police (I urge the military and the police), you are one of the pressure group in democracy, the other the Congress, pero huwag kayong pumayag na hindi marecover ng bayan ang ninakaw nila (do not allow them to get away with the trillions they stole)," he said.

Duterte also joked about ordering the military to kill the owners of the water firms.

"Gusto ko silang makausap. Hindi ito maareglo kung hindi ko makausap ang nagawa nitong kontratang ito. Tatawagan ko si (Armed Forces chief Noel) Clement, ‘Padala ka dito M16, dalawa. Pag alis ko diyan, p**** i**, patayin mo lahat diyan. Huwag ka mag-iwan ng buhay," he said.