DOJ again flexes legal muscle in water row

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'Should liberality be used in favor of the concessionaire to the detriment of the public and the government?' says Justice Undersecretary Markk Perete.

FLEX. Justice Secretary Menardo Guevarra leads the DOJ review that prompted the revocation of extension of contracts of Manila Water and Maynilad. File photo by Angie de Silva/Rappler

"From this starting point, should liberality be used in favor of the concessionaire to the detriment of the public and the government?" Perete told reporters on Thursday, December 12.The concession agreements of Maynilad and Manila Water will expire in 2022, but during the term of former president Gloria Macapagal Arroyo, the contracts were extended to 2037.Justice Secretary Menardo Guevarra said there was no clause in the agreements that provide for extensions.

Asked whether the silence of the contracts on extension explicitly mean prohibition, Guevarra invoked public policy. But the P10 billion arbitration win of the concessionaires speak of their legal insistence on that validity of the provisions, although both companiesand said they will no longer demand payment. Guevarra said the DOJ was not involved in the arbitration that the government lost, only the Office of the Solicitor General .

 

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