PRESS RELEASE
26 June 2013
The labor group Partido ng Manggagawa (PM) is demanding
immediate refund of some P15-B of corporate income tax passed on to consumers
by two private water concessionaires Maynilad and Manila Water.
The group also joined other groups in expressing opposition to
the pending rates hike being applied for by the two private water
concessionaires.
PM spokesperson Wilson Fortaleza said hiding corporate income
tax under a different name on public utilities’ operating expenses (opex) has
already been declared illegal and fraudulent by the Supreme Court in 2002, in
the case of Meralco vs Lawyers Against Monopoly and Poverty (LAMP).
“We logically assume that after the Supreme Court decided on
this matter, all regulatory bodies such as the Energy Regulatory Commission
(ERC), the National Water Resources Board (NWRB) and the Regulatory Office (RO)
of the Manila Water and Sewerage System (MWSS) were properly informed and
therefore presumed to be more proactive in preventing such violations in the
future,” stated Fortaleza.
“Lumalabas natulog sa pansitan ang ating water regulators, notwithstanding the fact that they
belong to corporate fat cats who were receiving large bonuses from taxpayers’ money,”
added Fortaleza
The group likewise lambasted the government for allowing these
things to persist despite knowing its obligations to ensure access to water to
every citizen. “As a universal human right, water must be highly
regulated if not provided free to every citizen,” insisted Fortaleza
The labor group stressed that the original sin was in the
privatization program of the government. Unless reversed, consumers will
eternally perish from private rent-seekers who find the government very tolerant
and charitable on their plundering activities.
Water rates
increased by epic proportions since MWSS was privatized and divided into two
concession areas in 1997. Maynilad won the bid for the west zone for Php
2.61 per cubic meter while Manila Water got the east zone for Php 4.96 per
cubic meter. Today, Maynilad charges at least Php 30 per cubic meter for those
who are consuming not lower than 20 cu.m. per month.
“That's a revolting 1,000% increase!,” Fortaleza
He pointed out that owners of Maynilad and Manila Water belong
to 40 richest families, who according to studies, control over 75% of the
country’s gross domestic product or GDP.
“This explains why despite positive GDP growth during the last
ten years, the highest was 7.8% in the first quarter of 2013, millions of
Filipinos remain poor,” concluded Fortaleza
