DOJ: Government May Takeover Maynilad, Manila Water When The Public Interest Requires

Department of Justice (DOJ) Secretary Menardo Guevarra on Wednesday, December 12, said the constitutional provision empowering the government to take over utilities under certain conditions would be a sufficient basis if it opts to take over the operations of water concessionaires.

Secretary Guevarra, however, declined to comment on whether present circumstances warrant a takeover.

“I will not answer the question unless it’s the President who will ask it,” Secretary Guevarra said in a message to reporters.

The Justice Secretary said that President Rodrigo Duterte could be thinking of Section 17, Article XII of the constitution (on national economy and patrimony) providing that the state may temporarily take over or direct the operation of any privately owned public utility or business affected with public interest, under two conditions: 1. in times of national emergency; 2. when the public interest so requires.

He said a “legal basis for a takeover and the capability are different issues”.

Secretary Guevarra also said regulatory body Metropolitan Waterworks and Sewerage System (MWSS) act of revoking the memorandum of agreement extending the period of the concession was upon the President’s directive, which was in turn based on the DOJ recommendation.

The DOJ recommendation, Secretary Guevarra noted, came after finding that the extension had no legal basis in the concession agreement. 

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“The ball is now in the concessionaires’ court. Take note that the proper time to renew the contract is upon the expiration of the concession agreements in 2022, as expressly provided in the agreements themselves,” he said.

Secretary Guevarra earlier said a takeover would be among the options available to the government if the water supply comes to a direct stop.

He added that the government is reviewing provisions on the 1997 agreements to weed out the onerous provisions in the deal between the government and concessionaires Manila Water and Maynilad.

Source: PNA