Metro Manila (CNN Philippines) — Bayan Muna Reps. Neri Colmenares and Isagani Zarate asked the Supreme Court (SC) on Tuesday (August 11) to stop water concessionaires Maynilad and Manila Water from demanding compensation from the government.
The lawmakers filed a petition for certiorari with prayer for a temporary restraining order and/or a preliminary injunction against additional water rates.
Colmenares explained that Maynilad and Manila Water wanted to pass on corporate income taxes to consumers by increasing their rates but are being barred from doing so by the Metropolitan Waterworks and Sewerage System (MWSS).
He said the water concessionaires, to ensure profit, are now passing on their demands to the government.
In the petition, the solons explained that even if the arbitration panel affirms MWSS and denies the rate increase application, the concessionaires could still go to the government and ask “that it be compensated through ‘sovereign guarantee’ under their Letter of Undertaking.”
If approved, “the people still pay even if they won their case against rate increases at all levels,” the petition added.
Maynilad is supposedly asking for P5 billion. Manila Water, on the other hand, reportedly wants P79 billion for potential revenue losses from 2015 until the end of its 25-year contract or until 2037.
Colmenares said this is illegal as water concessionaires are public utilities. He explained that corporate income tax is not a recoverable expenditure that may be passed on to the public.
“Petition din ito ng taxpayers na huwag kaltasan ng P84 billion ang public funds para sa Maynilad at Manila Water lalo na at palpak ang serbisyo pa rin nila hanggang sa kasalukuyan,” he added.
Named as respondents in the petition were the water concessionaires, Finance Secretary Cesar Purisima, President Benigno Aquino III, and officials of the MWSS.
