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Here’s the response of Maynilad President Rogelio Singson to our queries.
“As far as the extension is concerned, we still have to get final RP government approval through the Department of Finance.
“With respect to private subdivisions, the existing policies of MWSS will still govern the concessionaires. When we say we are ready to include and assist private subdivisions, what we are doing in BF will continue. We still cannot subsidize private subdivisions under existing policies of MWSS and under HLURB/PD-1345. All we can offer is exactly what we have done to BF residents, assist in providing financing. As we have committed, we are now aggressively laying out main distribution pipes to service the whole BF Paranaque. We hope to be able to also do the same for BF Las Piñas under the same arrangement with the homeowners associations. This is the best assistance Maynilad can provide at this time. Thanks for your support. Should you need further information, you may contact me or Reggie Cruz for further discussion.”
ere are comments and suggestions by a homeowner on the Revised Memorandum of Agreement between the Maynilad and the Association.
1
Rights & Obligations of MAYNILAD
Par. 1[b]. I suggest that the last phrase “bill the Association therefor” should read “bill the ASSOCIATION or the homeowners direct therefore;” Indeed, the homeowners will get billed directly.
Par. 1[h]. I suggest to insert “should the full amount of the bill remain unpaid …” This is to ensure that the homeowner pays not only his water consumption but also the cost of secondary pipes and the service connection fee stated in the bill.
2
Rights & Obligations of the ASSOCIATION
Par. 2[a] Why should Maynilad not be the one responsible “to engage” [choose their sub-contractor who is competent/knowledgeable and with expertise to lay down the pipes for a fast and efficient flow and distribution of water?] I was just thinking that Maynilad, having the expertise, can supervise the job, and not the ASSOCIATION.
Par. 2[b]. In this provision, the ASSOCITAION acts as guarantor for those homeowners who may not pay his share in the second piping cost, despite his earlier commitment. Where will the ASSOCIATION get funds to pay for this, if it happens?
Par. 2[c]. I suggest the following insertions be made to conform to the Letter May 21’09 from the Water Committee.
“c… each individual member/homeowner … which includes The Cost of Water meter and the guaranty deposit of …, payable in six [6] equal monthly installments of P1,190.40 per household.”
Par. 2[f]. Deed of Donation. I was just thinking that maybe we should not rush the transfer of ownership of the secondary and tertiary pipes to Maynilad in light of the provisions in Section 3[e] granting Maynilad the right to terminate the MOA and DISCONNECT the water line in case of breach by individual homeowners/ASSOCIATION of any provision in the MOA. [What if a great number of homeowners do not pay after 1 or 2 installments of the service connection fee or say do not pay after the 5th or 6th installment of the cost of secondary pipes. These scenarios may be remote but I just raised this so our Board can think of when it will be the proper time to execute such deed.
3
Special Provisions
Par. 3[c]. After the phrase “[48] monthly installments”, please insert “as well as the service connection fee stated in Section 2[c] above, beginning on the first month’s ….”
Par. 3[e]. Due notice only? I suggest a period be indicated in the notice of termination [say 15 or 30 days or more] so that it is not terminated immediately. Then the ASSOCIATION may be able to do something so that the MOA will not be terminated.
n BF Homes, the developer’s intransigence is legend! There is therefore a need to fast track the installation of the water system.
Homeowners are not exactly overjoyed with the prospect of shelling out P38,200 (each household) and relinquish their rights in favor of Maynilad on the Distribution System and the interconnecting lines being constructed. Worst, they have to execute the corresponding Deed of Donation in favor of Maynilad.
By losing ownership through donation of the water distribution system, homeowners could be digging themselves another problem if and when Maynilad, a private entity, losses its concession.
The cost of the subdivision lots sold include all costs such as roads and parks, open spaces and other improvements. Homeowners are short-changed because the developer reneged on its commitments. It is unfair when homeowners are made to pay again for the water system and donate it to a private concessionaire.
There is no sense of personal honor of keeping one’s word anymore. We have become a society of Pontius Pilates, washing our hands of responsibilities as he did. Yet a man who does not keep his promises is not a man; he is a weasel.
as Piñas RTC (Br. 255) Presiding Judge Raul Bautista Villanueva, in a 29-page SUMMARY JUDGMENT issuance dated 25 August 2009 but made publicly available 2 September 2009 only, LIFTED the preliminary injunction against Maynilad Water Services, Inc. and its Contractors but declares EO 688 as UNCONSTITUTIONAL, and the IRR of PD 1345 as VOID.
The Dispositive portion of the Summary Judgment reads:
“WHEREFORE, the foregoing considered, the “Joint Petition” dated 26 February 2008 of the Petitioners BF Homes, Inc. and PWCC is PARTIALLY GRANTED and judgment is hereby rendered as follows:
Declaring Executive Order No. 688 as UNCONSTITUTIONAL, and the Rules and Regulations Implementing the Provisions of Presidential No. 1345, entitled “Empowering the MWSS to Take Over the Centralized Water Supply Systems in Residential Subdivisions Within its Territorial Jurisdiction” as “VOID”;
Dismissing the said petition against the respondent HLURB and insofar as PD 1345 is concerned;
Making permanent the Writ of Preliminary Injunction issued against the respondent MWSS with respect to the implementation of EO 688 and its IRR; and,
Proclaiming Maynilad Water Services, Inc. and its contractors as no longer covered by the Writ of Preliminary Injunction dated 10 September 2008 with respect to water pipes laying being undertaken by it since the same, though found irregular, is subject to any existing business or property right of the petitioners.
Its implication
Here are the thoughts of a BF Homeowner received by email:
1
BF Homes and PWCC can ask for a reconsideration of the lifting of the injunction against Maynilad and its contractors, but it looks like BFHI won’t, based on the press statement of Cong. Golez. So, if BFHI makes good of its pronouncements, the whole of BF Homes Parañaque, Las Piñas, and Muntinlupa will have adequate, clean, potable and less-costly water by Christmas Day 2009 according to Maynilad President Rogelio Singson.
2
Since EO 688 has been declared unconstitutional and the IRR of PD 1345 void, the legal basis of MWSS /Maynilad to pass on the cost of a water distribution or reticulation system to the homeowners of private subdivisions may have disappeared. But the ruling declaring the EO unconstitutional and the IRR void is not yet final and executory. It is expected that MWSS through the Solgen and the OGCC may likely appeal this ruling directly to the SC as it involves a question of constitutionality of government issuances. Considering that it will take a long, long time before the constitutionality issue is resolved by the Supreme Court, the expedient way to have water before Christmas is for the enclaves and homeowners to just go ahead and pay for the cost of the enclave water system with the possibility of pay back at some future time, just like the 2000 others who now have Maynilad water.
3
In the presentation of Maynilad for the extension of their concession agreement by 15 additional years, Maynilad President Singson, in a public consultation meeting held few months back, committed the inclusion of the private subdivisions in the capex funding for the construction of water systems. So the homeowners should support and endorse the approval of the term extension proposal of Maynilad so that the burden of paying for the water infrastructure will not be passed on to the homeowners. But what about those who have already paid for theirs? Will Maynilad treat it as investment to be returned at some future time? We can only hope for it for now.
4
What if BFHI changes its mind later and restrains Maynilad again which may be brought about by non-agreement as to the serviceable facilities Maynilad is willing to accept and pay. Then we are back to square x again.
5
What should homeowners do then? a) ask Maynilad to fast track the completion to beat any new TRO, b) ask the mayors of the 3 cities to expeditiously, with unwavering political will, pursue the acquisition by the LGUs of the road lots, open spaces, etc. of BF Homes by public auction of these properties for non-payment of real property taxes - as the LGUs can immediately transfer title to the properties in their favor per the LGU code of 1991 and the Issuance of the Land Registration Authority.
You may post your comments or reactions to this piece on the combox below.
This breaking news by text from Cong. Golez - which is his statement to the press:
“RTC Judge Raul Bautista Villannueva lifted 9AM today the injunction against Maynilad Water Services Inc.’s water connection projects in BF Homes. This was announced by BF Homes, Inc. (Aguirre Group) during a congressional task force hearing chaired by Cong. Amado Bagatsing. Congressman Roilo Golez then moved, and the motion was mutually accepted, for BFHI to have agreement in open hearing with Maynilad that the latter can now proceed pipe laying and waterworks construction without interference from BFHI. The group then shook hands, formally recorded as part of the task force hearing to formalize the agreement, witnessed by Cong. Golez, Bagatsing, and UBFHAI president Leon Arceo, representing 12,000 households inside BF. Golez, who himself is a BF homeowner and resident, exclaimed that this is a historic moment for BF Homes (Parañaque, Las Piñas and Muntinlupa) as they see now a 20-year old dream coming true. Maynilad assured that with this congress-initiated agreement, Maynilad waterworks construction projects in BF Homes Parañaque, Las Piñas and Muntinlupa will be completed before the end of this year.”
fficers of the 12,000-strong United BF Homeowners’ Associations Inc. (Parañaque, Las Piñas, and Muntinlupa) yesterday filed an administrative complaint before the Supreme Court against Las Piñas Regional Trial Court Judge Raul Bautista Villanueva of Branch 274 for stopping the installation of water pipes by the Manila Waterworks and Sewerage System and Maynilad Water Services Corp. inside the BF Homes community in Parañaque, Las Piñas, and Muntinlupa. In a 15-page letter-complaint to Chief Justice Reynato Puno, the UBFHAI stressed that Judge Villanueva should be sanctioned for gross ignorance of the law, grave abuse of discretion, and utterly oppressive conduct.
”The Honorable Supreme Court has time and again cautioned judges not to indiscriminately issue injunctions when the claimed irreparable injury of a party is compensable, or when its issuance will cause injury that will far outweigh the benefit it will serve to the party supposed to be protected,” the UBFHAI said.
The group was accompanied by Parañaque Rep. Roilo Golez during the filing of the letter-complaint before the High Court.
According to the group, Villanueva issued a preliminary injunction against a government infrastructure project being undertaken by MWSS providing water service to the BF Homes community on the motion of developer BF Homes Inc. and its water service company Philippine Waterworks and Construction Corp (PWCC).
He also restrained and extended the effect of the injunction to the Maynilad Water Services Corp. and private contractors, stopping all these agencies from providing water to 12,000 households of BF Homes.
UBFHAI claimed that MWSS was ordered by President Arroyo thru Executive Order 688 issued on February 22, 2007, to provide water services to BF Homes. The EO was anchored on Presidential Decree No. 1345 empowering MWSS to take over the centralized water supply system within its jurisdiction.
“In issuing the preliminary injunction against MWSS, Maynilad Water Services, and all agents acting on their behalf, Villanueva effectively extended for an indefinite period of time the suffering of the thousand of residents of BF Homes who have been waterless for decades. He committed extreme injustice to the residents because he favored a non-existent private interest over public interest,” the group said.
For his part, Villanueva said to allow the MWSS to provide water services to the BF Homes community would be tantamount to taking of private property without just compensation.
He stressed that “taking without just compensation” should not only be construed in the physical sense but includes likewise the taking of the business from BF Homes Inc.(BFHI) and PWCC to provide water service to BF Homes community.
However, the UBFHAI disclosed that BFHI and PWCC no longer have any water service business since 2003. Because of this inability and failure of PWCC to provide water to BF Homes owners, the National Water Resources Board (NWRB) did not renew PWCC’s Certificate of Public Convenience to provide water.
Also, UBFHAI bared that the NWRB denied the PWCC’s motion for reconsideration, prompting the BFHI and PWCC to elevate the matter to the regional trial court.
UBFHAI stressed that the rationale of the prohibition against the whimsical issuances of TROs and injunctions by judges is to avoid disruption of essential government projects in areas of activity critical to the country’s economic development efforts, which, under the Constitution, must be implemented expeditiously and efficiently.
Also the prohibition was bolstered by the issuance of an Administrative Circular No. 11-200 banning the issuance of temporary restraining orders or writs of preliminary prohibitory or mandatory injunctions in cases involving government infrastructure projects.
Congressman Roilo Golez and MWSS agreeing that the Judge showed, by issuing a TRO on the Maynilad pipe laying project, that he was either ignorant of the law or committed grave abuse of discretion. Here, Golez also got the National Water Resources Board to state that the BFHI had no more personality to operate a water utility and that BFHI was operating illegally.
