PB authorizes Gwen to sue persons liable for ‘anomalous transactions’ in Manila Water JIA
In this 2014 photo, officials of Manila Water Consortium Inc. inspect a new weir facility that taps river water in Carmen town. (CONTRIBUTED PHOTO)
CEBU CITY, Philippines —Cebu Governor Gwendolyn Garcia may already proceed with the filing of criminal, administrative, and civil cases against persons responsible for the “anomalous and grossly disadvantageous transactions of the Province of Cebu” pertaining to its joint investment agreement (JIA) with the Manila Water Consortium, Inc. (MWCI).
On Monday, September 21, the Cebu Provincial Board passed the resolution of Board Member John Ismael Borgonia authorizing Garcia to sign the complaints and proceed with the filing of charges on behalf of the province for the questioned transactions.
Borgonia, in an interview, said that an investigation on the alleged anomalies in the transactions with the MWCI has already been conducted.
“As far as we know, naa nay investigation nga gi-conduct ang Office of the Governor, Provincial Legal Office, the team of consultants at the same time naa nay mga initial findings but as to the persons responsible, it’s up to the legal team,” Borgonia said.
Borgonia, however, begged off from naming persons or entities that may be subject to the complaints in order not to preempt the Provincial Legal Office.
Upon Garcia’s return as governor in 2019, her legal consultants pointed out changes in the terms of the JIA compared to the one that the province signed with the consortium during her stint as governor in 2012.
READ: Garcia gives Manila Water 90 days to explain, cure ‘breaches’ in joint investment deal
The Province inked a JIA with Manila Water for a P702-million project for the development of water supply facilities, tapping the surface water of Luyang River in Carmen town, northern Cebu.
Upon their review, the Capitol’s legal consultants found that the project cost for the water supply facility was bloated to P1.003 billion or P301 million more.
The Capitol also claimed of not receiving any profit share from the joint investment project which was supposed to be at 19.23 percent because the province’s shares of the earnings were plowed into its 49 percent share in the P301 million additional investment for the capital.
Aside from this, the selling price of the water produced by CMWDI also increased to P24.59 or P10.64 more than the agreed original price of P13.95.
Last December, the PB authorized Garcia to terminate the JIA with Manila Water after the latter’s failure to cure the said breaches. / dcb
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