July 24, 2020 – Bacolod City Councilor Jun Gamboa said that the signing of the three Board of Directors with PrimeWater, effectively privatizing the Bacolod City Water District, was done in complete secrecy, and is a violation of transparency and good governance, citing numerous conflict of interests, corruption speculations, and the poor tract record of PrimeWater itself. Gamboa is also head of the city’s Sangguniang Panlungsod’s Committee on Human Rights.
““Directors sold out to PrimeWater, violated their mandate”
In a released statement, Gamboa said that the Board of Directors are the policy making members of the Joint Venture Selection Committee, the same people mandated under law (PD 198) to provide clean, sufficient, potable, and cheap water. The people of Bacolod pay these people to render such services, but according to the Councillor, the Board has surrendered control and supervision of the Water District to a private company, effectively violating the roles they were appointed by the people for.
“Directors Have Personal Interest To Support PrimeWater”
While the employees of BACIWA will be forced to resign with separation pay and no guarantee they will be hired back, Gamboa states that the Board of Directors favored the agreement as they will be retained as employees of PrimeWater on top of receiving higher separation pays at 250% from PrimeWater and 150% from BACIWA. These bonuses will come to the expense of the consumers as these will be charged as “expenditure for gratitudes” in the new computation of rates for the water of the people of Bacolod.
Higher Rates for Consumers, Lower Wages for Employees
While the employees of BACIWA will be forced to resign with separation pay and no guarantee they will be hired back, Gamboa states that the Board of Directors favored the agreement as they will be retained as employees of PrimeWater on top of receiving higher separation pays at 250% from PrimeWater and 150% from BACIWA. These bonuses will come to the expense of the consumers as these will be charged as “expenditure for gratitudes” in the new computation of rates for the water of the people of Bacolod.
“Violation Of Republic Act No. 3019 – Anti-Graft and Corrupt Practices Act”
Gamboa also cites that the incentives offered to the Board of Directors is a violation of this law which states:
“Section 3. Corrupt practice of public officers. In addition to acts or omissions of public officers already penalized by existing law, the following shall constitute corrupt practices of any public officer and hereby declared to be unlawful;
(b) Directly or indirectly requesting any gift, present, share, percentage or benefit, for himself or for any other person, in connection with any contract or transaction between the Government and any other part, where the public officer in his official capacity has to intervene under the law”
“Poor Track Record of PrimeWater”
Gamboa also reiterated the findings of the Commission on Audit (COA) reports on several of PrimeWater’s districts showing adverse and negative findings. In a span of 5 years, they have taken over 70 water utilities in the country, with at least 15 districts filing complaints about PrimeWater at the Senate. He also calls the Villar-owned company an “economic predator” that preys on people by way of bribery and corruption of acquire BACIWA and other water districts.
“BACIWA Still Profitable; Management May Be Remedied”
Although Gamboa admitted that BACIWA has experienced corruption and mismanagement, the Bacolod City Water District is still earning a revenue of 80 million to 100 million a year without defaults in its financial obligations. The councilor points out that they city does not need to settle for a joint venture share of 35 million and an unjust payment of just 25 million that is chargeable to the people of Bacolod’s share in the partnership for BACIWA’s facilities and equipment.
“Other Options to Improve BACIWA without privatization”
The following were enumerated as viable alternative options to improving services of the Bacolod City Water District without having to venture with PrimeWater:
a. Development Bank of the Philippines and Landbank has offered financial assistance triple the investment worth of PrimeWater
b. Joint Venture of Bulk Water Supply; agency to agency agreement with Municipality of Murcia, Talisay City, or Bago City gov’ts. for bulk water supply
c. Capped BACIWA spending due to being a public establishment, a reason cited by the Board of Directors, may be negotiated with other public & private financial institutions, along with full-blown congressional hearing
d. Commission on Audit recommendation list to amend & hold accountable current & previous board of directors and management team
Paghimutad 