The entire Board of Trustees of the Metropolitan Waterworks and Sewerage System (MWSS) and its administrator Orlando Hondrade should resign en masse for consistently compromising the public interest with their mishandling of the case against Maynilad Water Services Inc.

Allowing the suspension of Maynilad’s payment of concession fees (or the amount due to MWSS creditors prior to its privatization in August 1997) covering September to December 2005 worth $17.93 million is just the latest in a long list of anti-people decisions made by the MWSS leadership. What is worse is that the public is made to suffer the subservience of MWSS to the interest of private and foreign business such as its plan to borrow $30 million to pay for the maturing debts of Maynilad. Meanwhile, as Maynilad is again relieved of financial obligations, its customers are forced to pay P55.8 (for those consuming 30 cubic meters) more per month starting this year, and this does not yet include the impact of the expected VAT (value added tax) increase.

Indeed, the temerity with which MWSS defends its pro-privatization and pro-business stance is truly mind-boggling. Instead of answering squarely the inquiry of the Commission on Audit (COA) on why MWSS allowed the suspension of concession fee payments, one of its directors – Government Corporate Counsel Agnes VST Devanadera – retorted that it is COA that must “explain why it is asking for a reason for the deferral.”

Devanadera went further to claim that MWSS has “enough funds” even with the deferred concession fee payments. We wonder why it needs to borrow $30 million this year, on top of the P10 billion it borrowed in 2005, just to service the obligations of Maynilad? We wonder why Devanadera does not feel obliged to explain to Maynilad consumers, who actually carry the burden of paying the concession fees through their monthly water bill, why the MWSS allowed the deferment and why it did not translate to lower water rates when a portion of the water bill supposedly goes to concession fee payments?

And lest we forget, MWSS agreed to amend its contract with Maynilad to introduce various cost recovery charges that further bloated the people’s water bill when the Maynilad, citing financial problems, unilaterally stopped paying the concession fees in March 2001. In spite of the new charges, Maynilad never paid the concession fees until December 2004. True to its anti-people disposition, MWSS even bailed out Maynilad through corporate rehabilitation in June 2005 – which it now uses as basis for the decision to defer the payment of concession fees.

Water consumers have endured long enough the callousness of the current MWSS management. These officials clearly do not represent the general good and public welfare and therefore suffer the same problem of legitimacy just like their political patron – Mrs. Gloria Arroyo – who appointed them to power.