One of President Duterte’s finest hours

President Duterte threatened to charge the owners of both companies with economic sabotage, and to keep them detained while pending trial.

The President of the Philippines is not just the head of the government. He is the protector of the Filipino people.

Last week, President Rodrigo Duterte lived up to the role of the protector of the people when he stood up to two of the nation’s most powerful business cartels, Manila Water Company Inc. and Maynilad Water Services Inc.

Since rich, powerful and influential individuals are behind both water service concessionaires, most presidents and similarly situated politicians will not dare lock horns with these enterprises. That political stereotype does not apply to President Duterte.

Earlier this month, the Permanent Court of Arbitration in Singapore resolved a case filed by Manila Water and Maynilad against the Philippine government. The court declared the Philippine government liable for damages in the amount of P11 billion because both concessionaires were not able to increase water rates in the past. A total of P7.3 billion was awarded to Manila Water and P3.6 billion was granted to Maynilad.

A very angry President Duterte denounced the arbitration award, called the concession agreements with Manila Water and Maynilad lopsided and unjustly onerous, and threatened to take over their services.

The President was particularly upset to find out that both companies have been passing off their income tax obligations to their customers. He was also livid upon learning that both companies planned to increase water rates by next year.

President Duterte threatened to charge the owners of both companies with economic sabotage, and to keep them detained while pending trial.

Almost overnight, Manila Water and Maynilad announced that they were no longer interested in collecting the P11 billion arbitration award from the government. They also said that they were willing to renegotiate the stipulations in their concession agreements which President Duterte considered lopsided and onerous.

Both companies likewise revealed that they will not increase water rates next year.

Nobody knows if Manila Water and Maynilad will keep their promise, but everyone is certain that the two concessionaires gave up on their P11 billion award because they believe that the no-nonsense President Duterte will carry out his threat.

The brave stance President Duterte took against Manila Water and Maynilad once more confirms that he is the protector of the people. Indeed, it was one of his finest hours as President of the Philippines.

Even the usually noisy and hollow-minded politicians from the Liberal Party (LP) and their allies in the politicized Roman Catholic Church and the local communist movement acquiesced in what President Duterte did.

If the president had been somebody other than Duterte, like maybe the slippery Mar Roxas of the LP or the egotistical Grace Poe-Llamanzares, the complete opposite may have taken place. They would have likely yielded to the onerous demands of the two water concessionaires by citing the law governing contracts. After all, Roxas is a member of the nation’s wealthy class, and Poe needs the support of the powerful elite to realize her consuming obsession to become president someday.

Some political middlemen and payment facilitators may even get a sizeable percentage of the arbitration award.

At the end of the day, it is still the Filipino taxpayer who must shoulder the P11 billion expenditure.

Unfortunately, 91-year-old ex-President Fidel Ramos seems to have taken the side of the water concessionaires. In his letter to President Duterte dated 4 December, Ramos said the government gave its word in its contracts with Manila Water and Maynilad.

Even if well meant, the Ramos advisory is fraught with red flags.

There is the credibility aspect. Ramos was president when the onerous concession agreements with Manila Water and Maynilad were signed. It is not surprising to hear Ramos defend those onerous deals.

In addition, Manila Water and Maynilad already expressed their disinterest in collecting the P11 billion arbitration award. That is an obvious indication that both companies are aware of the lopsided character of the concession agreements.

Likewise, by agreeing not to increase water rates next year, both concessionaires have tacitly admitted that their investments in the water business have been very lucrative.

We are fortunate to have a President Duterte who can stand up and protect the Filipino people from exploitation.