Palace shrugs off water firms' loan woes !-- -- Alexis Romero (The Philippine Star) - January 10, 2020 - 12:00am MANILA, Philippines Water firms Maynilad and Manila Water do not need to tap loans to fund their operations as they have earned billions of pesos from their concession contracts, Malacaaang said yesterday. Presidential spokesman Salvador Panelo claimed that the parties behind the water concession deals had conspired to commit what he described as a "colossal fraud and rip-off.

" Panelo said the concession agreement enabled Maynilad and Manila Water to earn billions of pesos. "They cannot claim that their services would be affected if banks stop lending money to them.

They have earned billions of profits since 1997," he told reporters. "What do you need loans for? You have the money in your pocket.

" The government's concession deals with Manila Water and Maynilad were signed in 1997 and were supposed to last for 25 years. The contracts were extended by 15 years in 2009 or 13 years before they expire.

Duterte had threatened to file charges of graft, plunder and economic sabotage against the water firms and state lawyers behind the deals. The Metropolitan Waterworks and Sewerage System has revoked the extension of the concession contracts in compliance with the President's order.

On Tuesday, Duterte offered new contracts to Manila Water and Maynilad, but clarified that there is no guarantee that the concessionaires would not be prosecuted. The President said he would "nationalize" water distribution if the concessionaires refuse to accept the new contracts.

Panelo said Duterte is bent on running after those who were behind the concession deals. Duterte said the government would take over Metro Manila's water distribution services if the water firms refuse to accept the terms of a new contract that will be offered to them.

Sen. Christopher "Bong" Go said Maynilad and Manila Water are not yet off the hook even if they accept the government's offer of a new concession agreement.

"The President's 'take it or leave it' offer stays. But he is still looking into the legal liabilities of the water companies," Go said.

He described the water concession deals as "onerous." West zone concessionaire Maynilad is hoping for a quicker resolution of the new agreement that the government wants to implement.

The Department of Justice is reviewing the concession deals with Manila Water and Maynilad. "The sooner the contracts are finalized, the better for the consumers," Maynilad president and chief executive officer Ramoncito Fernandez said.

Justice Secretary Menardo Guevarra said they would be able to present the new concession contracts within six months. Fernandez said Maynilad is moving in a "calibrated" mode given the current situation.

With Cecille Suerte Felipe, Louise Maureen Simeon

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