Ombudsman: Villars under investigation concerning water firm

MANILA, Philippines — The Office of the Ombudsman has initiated a preliminary investigation focusing on members of the Villar family and executives of the water utility firm that they previously owned for possible violations of the anti-graft law.

In a statement on Friday, the Ombudsman said criminal and administrative complaints against Senators Mark and Camille Villar over “grossly disadvantageous” joint venture agreements (JVAs) between Prime Water Infrastructure Corp. (PWIC) and local water districts have been filed with its preliminary investigation team.

Former Sens. Cynthia and Manny Villar, their son Manuel Paolo Villar, as well as key executives of the concerned water districts were also included in the complaints, it said.

Article continues after this advertisement

READ: Villar asks for restraint in making conclusions amid graft complaints

FEATURED STORIES

NEWSINFO

NEWSINFO

NEWSINFO

In a statement, Manny Villar said they had yet to receive copies of the complaints and “therefore cannot meaningfully comment on their specific allegations.”

At a press briefing, Assistant Ombudsman Mico Clavano said the respondents would be given an opportunity to answer the allegations in the preliminary investigation phase.

The Ombudsman said the complaints were for violation of Section 3(e) and 3(g) of Republic Act No. 3019, otherwise known as the Anti-Graft and Corrupt Practices Act.

Legal process

Section 3(e) considers the act of “causing undue injury to any party, including the government, or giving any private party any unwarranted benefits, advantage or preference in the discharge of his official administrative or judicial functions” as a corrupt practice.

Article continues after this advertisement

Section 3(g), on the other hand, states that entering into any contract or transaction manifestly and grossly disadvantageous to the government is considered a violation of the law.

“We respect the legal process and will respond to the complaints at the appropriate time and in the proper forum,” Villar said.

Article continues after this advertisement

READ: Villars, local water districts face prelim investigation over graft raps

Poor standards

“We are confident that, once given the opportunity to examine the allegations and the evidence supporting them, we will be able to fully and properly defend our rights and address the matters raised against us,” he added.

The former senator also asked that the legal process “be allowed to take its course and that conclusions not be drawn before the parties have been afforded the opportunity to be heard.”

The Ombudsman said its investigation stemmed from a report by the Office of the Government Corporate Counsel which stated that PWIC had entered into JVAs with 75 local water districts from 2015 to 2022.

The JVAs covered the “financing, development, rehabilitation, expansion, improvement, operation and maintenance of water supply and septage services in their respective jurisdictions,” it said.

Clavano said these agreements transpired when Mark Villar was secretary of the Department of Public Works and Highways and member of the board of trustees of the Local Water Utilities Administration.

He said 19 local water districts issued notices of pretermination due to PWIC’s inability to provide its obligations.

“It has reportedly failed to supply uninterrupted water resources and has instead provided poor drinking water standards, among other complaints against it,” Clavano said.

Initial list

The Ombudsman said the Commission on Audit (COA) has also issued notices of charge to PWIC.

“The COA has already flagged PWIC’s nonpayment for the utilization or consumption of materials and supplies inventory of the local water districts,” the Ombudsman said.

It said that total unpaid obligations of PWIC for the Quezon Metro Water District, Trece Martires City Water District, and San Pedro (Laguna) Water District have reached P65,650,708.07.

The Ombudsman said it also “believes that the acts may constitute malversation of public funds, while the acts of government personnel involved may constitute grave misconduct under Rule 10, Section 50(A), No. 3 of the 2017 Rules on Administrative Cases on the Civil Service.”

“This is only the initial list, and the Ombudsman expects further investigation and the filing of additional complaints,” it added.

According to Clavano, the other individuals also facing criminal and administrative complaints are:

• Fe Rebancos, the president of PWIC

• Romeo Sabater, vice president of PWIC

• Enrico Pasumbal, general manager of Quezon Metropolitan Water District

• Guillermo Pili, general manager of San Pedro Water District

• Juliet Ocampo, general manager of Trece Martires City Water District

• Five individuals of the joint venture selection committee of Quezon Metropolitan Water District

• Five individuals of Quezon Metropolitan Water District board of directors

• Six individuals of San Pedro Water District joint venture selection committee

• Two individuals of San Pedro Water District board of directors

• Five individuals of Trece Martires City Water District joint venture selection committee

Your subscription could not be saved. Please try again.

Your subscription has been successful.

The Villars sold PWIC to Lucio Co’s Crystal Bridges Holding Corp. in December last year. The utility firm was renamed Hiraya Water Corp. in June. —WITH A REPORT FROM HOLLY BACAY /das