MANILA, Philippines – Maynilad is seeking P3.44 billion from government as sovereign compensation for revenue losses it allegedly incurred since 2013.
Maynilad said the losses were incurred from January 1, 2013 to February 28, 2015 due to the refusal of the Metropolitan Waterworks and Sewerage System (MWSS) to implement rate adjustments as ordered by the arbitration panel.
According to Maynilad, the amount will continue to rise for as long as MWSS administrator Gerardo Esquivel, regulatory office head Joel Yu, and MWSS trustee Emmanuel Caparas continue to "violate their plain legal duty" to implement a final and executory ruling.
It accused the three MWSS officials of trying to "cover up their serious mistakes and gross mismanagement" when MWSS reinterpreted its contract with Maynilad, triggering the arbitration where it lost to Maynilad but possibly won over Manila Water on the same issue.
The firm added that it does not need "to stress that Messrs. Esquivel, Yu and Caparas have thoughtlessly created this unnecessary, massive government liability which they could and should have easily avoided" by respecting a valid contract, and now by complying with a lawful ruling.
Maynilad said that under the sovereign undertaking, government undertook to compensate the company if its rate adjustments are delayed by MWSS.
It said its revenues and service are being affected each day that it unable to collect the proper rates.
"In the end, it threatens our viability as well as our and MWSS’s ability to provide the services the consumers need and deserve," Maynilad said.
MWSS earlier said it will not take further actions on water rate adjustments until the arbitration process for both Maynilad and Manila Water have been completed.
It also said that allowing Maynilad to increase its rates will cause a dilemma.