FOR lawyer James Judith, the fight against “cartelization” of Cagayan de Oro City's main water facility is far from over.
“It’s not a defeat but a draw,” said Judith on the Philippine Competition Commission’s (PCC) decision to terminate the preliminary inquiry it conducted on the alleged anti-competitive agreements between or among the Cagayan de Oro City Water District (Cowd), Metropac Water Investments Corporation, and Rio Verde Water Consortium Inc. (Rio Verde).
The Cowd is a government-owned and controlled corporation that manages and supervises the distribution of the household needs of close to 100,000 water consumers in the city’s east and west districts.
In its notice of resolution last April 17, PCC’s Competition Enforcement Office Director Orlando Polinar said it has resolved to close the inquiry for lack of reasonable ground to conduct a full administrative investigation on the parties involved.
It can be recalled that Judith, along with Councilors Teodulfo Lao Jr., Enrico Salcedo, and Reuben Daba, filed a complaint at the PCC in November last year, urging the office to initiate an appropriate legal action and a motu proprio investigation to the “disadvantageous” water deal.
Judith said Rio Verde cannot compete or challenge the MetroPac offer after both agreed to sign an operations and management contract, and to challenge MetroPac would be a “conflict of interest.”
However, the PCC ruled that Rio Verde and MetroPac are not considered competitors in the bulk water supply market because the latter has no treatment and distribution facilities operating to supply bulk water.
The PCC also pointed out that there was no direct evidence of bid suppression, among others.
But Judith viewed the PCC decision as a “draw” and “not a defeat” for them.
He said the PCC assured that although it finds no reasonable grounds to proceed with the probe for now, it will conduct another inquiry if circumstance in the future so warrant.
In their letter-reply dated April 25, Judith and the councilors filed a motion for reconsideration, insisting that Cowd knowingly entered into an agreement that is not only anti-competitive but disadvantageous to the government.
“This is not defeat, I call it a draw. What I can interpret from their decision is that it did not favor MetroPac, it is a status quo,” he said.
“Wala man ni favor sa metropac, it’s just a preliminary inquiry, it doesn’t mean that we cannot present new evidence and have it review to make the case elevate to the PCC panel,” he added. (Pamela Jay Orias)