A consumer group on Friday questioned the acquisition of PrimeWater Infrastructure Corp., now operating as Hiraya Water Corp., by retail businessman Lucio Co through Crystal Bridges Holding Corp., saying the transaction should have first secured the written consent of the local water districts that have joint venture agreements (JVAs) with the company.

The United Filipino Consumers and Commuters (UFCC) said the acquisition should not be treated as an ordinary private business transaction because PrimeWater operates public water systems under partnerships with government-owned local water districts.

UFCC Chairman Rodolfo "Ka RJ" Javellana Jr. said a change in the ownership and control of PrimeWater directly affects existing joint venture agreements with government entities.

"It is not enough to say that only the ownership of a private company has changed. These agreements involve the delivery of public water services. If control over the private partner changes, the local water districts should be informed and should give their consent," Javellana said.

The group cited Section 6.2(b) of the 2013 Revised National Economic and Development Authority (NEDA) Joint Venture Guidelines, which states that while a government entity remains a party to a joint venture, the private-sector partner cannot sell, assign or transfer its interest in the joint venture company without the express written consent of the government entity.

According to the UFCC, the provision means Crystal Bridges should have first obtained written approval from the affected local water districts before acquiring ownership and control of PrimeWater.

The group challenged Hiraya Water and Crystal Bridges to disclose whether the required written consents had been secured from the water districts involved in the joint ventures.

"Where are the written consents? Did all the water districts agree to the transfer of control to Lucio Co and Crystal Bridges? The management of a vital public service cannot simply be transferred without consulting the government partner and the public," Javellana said.

The UFCC also argued that local water districts should determine whether the new owner has the legal, technical and financial capability to fulfill the obligations of the existing joint venture agreements.

It likewise urged Hiraya Water and Crystal Bridges to identify which local water districts were fully informed of the acquisition and which had granted express written consent.

The consumer group also called on local water districts to review their joint venture agreements and seek legal advice before recognizing or approving any change in the ownership or control of their private-sector partner.

Neither Hiraya Water nor Crystal Bridges has publicly responded to the UFCC's statements as of posting time.