Consumers, led by Bagong Alyansang Makabayan (BAYAN) Negros and AMLIG Tubig, trooped to the Bacolod Government Center for a lighting rally this morning urging Bacolod City Mayor Albee Benitez to remove the 12% Value-added tax on water utilities under the Baciwa-Primewater partnership.
“We urge him to listen to his constituents as he has all the power to review and even stop the imposition of such burdensome VAT and the Joint Venture Agreement (JVA) itself,” BAYAN said in a statement.
The groups noted they had previously held a dialogue with the Mayor last August and September on the VAT and their concerns about the JVA, but their calls remain unanswered.
“Ang Mayor, ang LGU, dapat maghimo sang tikang nga dulaon ang tax para mag mag-an kag maghagan hagan ang kapigaduhon kag ka bug-at sang aton sitwasyon, ilabi na gid sa pagsaka sang mga sandigan nga balaklon,” says Berlita Ante of KADAMAY Negros, representing the urban poor sector.
(The Mayor, the LGU, should take a step to eradicated the tax so that it will ease the poverty we are experiencing, especially the rising cost of basic commodities.”)
The imposition of the 12% VAT is stipulated under the joint venture agreement (JVA) between the government-owned Bacolod Water District (BACIWA) and the Villar-owned Primewater Infrastructure Inc., signed by its board of directors last November 12, 2020.
The collection of the VAT from the consumers started February 2022, a year after the signing of the JVA, and will continue for 25 years as stipulated in the agreement. Primewater shouldered the taxes during the first year.
BAYAN Negros asserted in their statement BACIWA is Government Owned and Control Corporation (GOCC) under Presidential Decree 198 and thus, “the imposition of the VAT is an admission of BACIWA that it has indeed been privatized through the joint venture.”
The group added the joint-venture has not led to any significant improvement in the services, but only worsened it. Numerous complaints have also been aired on social media of the coffee-like consistency of the water services.
Last September, even the Bacolod Sangguniang Panglungod requested Farah Jenny Monteclaro, branch manager of Baciwa-Primewater through Mona Dia Jardin, general manager of Baciwa-Primewater Infrastructure Corporation, to provide the SP a written explanation as to its poor services.
The resolution authored by Bacolod Councilor Claudio Puentevella reiterates Baciwa is still government owned and imbued with public interest, and that it shall “provide potable, reliable and sustainable water supply and services to its consumers in the city.”
Noli Rosales, BAYAN Negros Spokesperson, slammed the claim of BACIWA that their water is potable.
“If they truly believe that, I dare General Mona Jardin to drink the tap water with me in the morning,” he said.
Immediately after, the groups moved to the Civil Service Commission Region VI to hold a picket rally to expedite the reinstatement of the 59 illegally-terminated BACIWA regular employees.
Last August 20, the CSC released a resolution favoring the reinstatement of the sacked employees and that they shall be “entitled to full pay from the time of their separation until actual reinstatement.”
However, the employees have yet to be reinstated by the Baciwa board of directors.
Paghimutad 