LAWYER James Judith said the Cagayan de Oro City's water utility and two bulk water suppliers may have manipulated the price of water when they signed a tripartite agreement some two years ago that effectively "cartelized" the local water industry, thereby controlling the price of tap water and restricting competition.
"All three are in bad faith. The COWD cannot do a Pontius Pilate because it knew of the deal all along," Judith said.
Judith declined to name officials that may be accountable for the supposed price manipulation adding it is yet too early to tell who may be involved.
“The three personalities manipulated the price. Because why didn’t they open the bidding to other water suppliers which offer cheaper water rates? Gi-diritso lang sa MetroPac (MetroPac was arbitrarily chosen),” he said.
Judith said officials of the Cagayan de Oro Water District (COWD) knew all along about the management and operations contract entered into by MetroPac Water Investments Corporation (MetroPac) and Rio Verde Water Consortium Inc. (RVWCI).
Judith said the supposed tripartite agreement involving the COWD, RVWCI, and MetroPac in 2015 predated the joint venture agreement between COWD and MetroPac which was signed only this year.
"It implies that it weren't only MetroPac and Rio Verde who colluded to control the price at P16.35 per cubic meter. The water district was a willing party to lock the price at P16.35," he said.
Because of this, Judith said he will send a supplemental evidence to his complaint before the Philippine Competition Commission (PCC) which would now include the COWD as another party to be investigated.
"In our complaint, we only pointed out that MetroPac and Rio had an agreement to corner us, so we will also include that COWD is part of the big plan to corner us," he said.
"With their tripartite agreement, they did not give the chance to other willing suppliers offering water price at even P8 per cubic meter, water district willingly allowed the P16.35 water price, even if the COA already disallowed P10.45 per cubic meter of existing water price. It was the water district was the one who sold us to the devil, giluto ta nila ug apil," he said.
Judith also questioned why, even with presence of other willing suppliers, the COWD awarded the contract to MetroPac.
In a committee hearing two weeks ago, City Councilor Teodulfo Lao Jr. said Cagayan de Oro Water District (COWD) chairman of the board Eduardo Montalvan told the committee body he heard that Rio Verde and MetroPac already had a maintenance and operations contract. Montalvan however did not say of the tripartite agreement supposedly involving the COWD and the two water suppliers.
Last November 16, Judith filed a complaint before the PCC urging for a motu proprio investigation, for a probe initiated even without any complaints filed
In the complaint, Judith said that the entry of MetroPac Water Investments Corporation will be a burden to consumers with its expensive water rate at P16 per cubic meter.