00:00 Although a GOCC may actually spend generated revenue on worthwhile projects and programs that benefit the public,
00:07 the Commission on Audit, as mandated by law, is still very strict and particular on how such entities go about it.
00:14 Take the case of the MWSS, which COA findings indicate it allegedly overcharged two water concessionaires for several years.
00:23 Claes Olpardilla supplies the details.
00:28 The Commission and Auditor COA flogged the Metropolitan Water Works and Sewage System over alleged excessive collection from two water concessionaires, Maynilad and Manila Water.
00:39 The annual report called out the MWSS for collecting P845 million from FY 2019 to 2022 spent on the Kaliwadam Project, Bantay-Gubat, and Ipa Watershed Development Program.
00:57 The state auditor called it irregular, explaining the MWSS can only fund such activities from loans and the project's annual budget.
01:07 The COA warned it could result in additional charges to consumers.
01:12 The state auditor recommends the MWSS to suspend the collection of these payments to the concessionaires.
01:21 The MWSS explained the cost of Kaliwadam's construction is funded from the loan agreement to China and settlements from Maynilad and Manila Water.
01:33 In 2017, we changed the project cost and project modality of our funding from PPP to ODA.
01:43 Naturally, our permitting works, land acquisition, resettlement, all of that went to the responsibility of MWSS.
01:52 That's why we had a memorandum of agreement between MWSS and the two concessionaires that all local costs of the project outside of the construction will be paid by the two concessionaires.
02:06 In the contract cost of the project construction, 85% of it is loan from China Exim Bank, 15% will be paid by the two concessionaires.
02:19 Kaliwadam project costs over 12 billion pesos. However, some unforeseen expenses incurred.
02:26 When we had COVID-19 pandemic, we were delayed in site acquisition, equipment of the contractor, and the experts here in the Philippines. That's what we need to pay.
02:39 According to the MWSS, it will not cause an additional water charge to the consumer. Because as early as now, it has been passed on to consumers.
02:50 Our rough estimate is around 81 centavos per cubic meter.
02:56 Now it has started because we are already paying our contractor. We have advance payment. All of the investments that will benefit our service area, definitely, we are asking our consumers.
03:13 It would be unfair if we get a budget from the government that will pay the entire Philippines, but it will benefit the consumers here in Metro Manila.
03:24 The Kaliwadam is expected to complete in the year 2028.
03:29 The United Filipino Consumers and Commuters expressed dismay on the advance payment called from water utility consumers.
03:38 It is clear that this is an abuse to the poor water consumers.
03:46 If it's an advance payment, it means that we are the capitalists, not Manila Water.
03:55 Where can we find a concession agreement that pays for projects, even if it's just a dream, is the water consumers.
04:04 MWSS said it will submit an explanation to COA to shed more light on the issue.
04:11 Meanwhile, the agency assured no more water service interruptions as the Angkat Ipo-Lemes watershed remains at a comfortable level.
04:21 Khaleza Pardiliya, for the nation.
