Lawyer files complaint vs Oro water ‘cartel’

LAWYER James Judith will officially file a complaint before the Philippine Competition Commission (PCC) on Thursday, November 16, urging for a motu proprio investigation over the supposed "cartelization of the local water industry" orchestrated by the city's water utility and its current and future bulk water suppliers.

Judith, representing Councilors Teodulfo Lao, Jr., Enrico Salcedo, and Reuben Daba, is urging the PCC to initiate the appropriate legal action and a motu proprio investigation, or a probe initiated even without any complaints filed.

In his letter-complaint, Judith said pointed out that the entry of MetroPac Water Investments Corporation (MWIC) will be a burden to consumers instead of providing relief with its expensive water rate at P16 per cubic meter.

Judith said the outgoing bulk water supplier of Cagayan de Oro City Water District (COWD) which is the Rio Verde Water Consortium Inc. (RVWCI), cannot compete or challenge the MWIC offer after it agreed to sign an operations and management contract with the MWIC. He said challenging MWIC would now be "conflict of interest".

Judith confirmed that an operations and management contract was indeed agreed between the two, following the MWIC disclosure statement to Securities and Exchange Commission (SEC) just this year. He also noted that an operations and management contract was already agreed "long before the joint venture agreement with COWD was approved", which was only this year.

The actions of two major water players of Cagayan de Oro showed that "there is the apparent cartelization of the local water industry, with the purpose of maintaining the desired water rate to their advantage at the rate of P16.35 per cubic meter, thus P5.90 per cu. m. higher than the COA disallowed rate of P10.45 per cu. m. and restricting competition for that matter".

He said that while MWIC is allowed to submit its unsolicited proposal to COWD under procurement laws, "what cannot be denied is the collusion between the MWIC and RVWCI to jack up the water rate and restrict the competition".

"The two companies did not submit for review and approval to your office the BWSA between COWD and MWIC. Likewise that of the operation and management contract between RVWCI and MWIC. The BWSA of RVWCI and COWD is P1.75Billion and to which MWIC is to be subrogated which complies with the minimum threshold amount of P 1B to fall within the jurisdiction and authority of the PCC," the complaint stated.

This move, is the recent of the legal actions, taken by the councilors and Judith against contracts entered by the water utility and its bulk water suppliers. The first one, was filed last week at the Regional Trial Court Branch 38, for a motion to leave to intervene with petition-in-intervention for the nullification case of the COWD against Rio Verde.

Judith said the complaint was also sent to the Presidential Management Staff.

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