This story
was taken from Bulatlat, the Philippines's alternative weekly
newsmagazine (www.bulatlat.com, www.bulatlat.net, www.bulatlat.org).
Vol. V, No. 48, January 15-21, 2006
Arroyo Risks Further
Isolation with Maynilad Reprivatization - WPN
President Gloria Arroyo, who
has yet to overcome the worst political crisis of her regime, is risking further
isolation from the people if she would allow the planned reprivatization of the
Maynilad Water Services Inc.
By Arnold Padilla
President Gloria Arroyo,
who has yet to overcome the worst political crisis of her regime, is risking
further isolation from the people if she would allow the planned reprivatization
of the Maynilad Water Services Inc. The Water for the People Network (WPN)
issued the statement as residents from Maynilad areas trooped to the main office
of the water firm where it is holding its annual stockholders' meeting. The WPN questioned the
Metropolitan Waterworks and Sewerage System's (MWSS) plan to reprivatize
Maynilad Water Services Inc. as the move would further burden the ordinary
consumers, who are still reeling from last year's record high oil prices and
inflation, of miserable service and exorbitant water rates. Citing the poor track
record of Lopez-owned Benpres and French company Suez as Maynilad operators, the
network said that it is very absurd that the MWSS would want to again entrust
the provision of water supply and sanitation in the west zone of Metro Manila to
profit-oriented private business. Aside from hiking its all-in tariff (basic
rate plus other charges) by 345% since 1997, three out of every 10 people in
Maynilad areas are still without water supply while in areas that are connected
to the Maynilad system, water is unavailable for three to four hours daily. Government representatives
will take over six of the 12 seats in Maynilad's board of directors in its
stockholders' meeting today. The interim board will supervise the
reprivatization of Maynilad, which became 84% owned by the MWSS and 16% by Suez
after a Quezon City court approved its corporate rehabilitation last year. Residents from Bagong
Barrio, Caloocan City under the Alyansa Sigaw Tubig (Cry for Water Alliance or
AST), a WPN member, held a protest rally in front of the Maynilad office to
denounce the rate hike that would increase their monthly bill by as much as P56
starting today. According to the WPN, the rate hike is intended to make the
reprivatization of Maynilad, which the MWSS hopes to complete within the first
semester of the year, attractive to potential investors. This is unacceptable
for some 100,000 residents in 16 barangays of Bagong Barrio, many of whom are
forced to pay the minimum monthly bill to Maynilad even if there is no water
coming out from their taps. The WPN noted that Arroyo
has already mishandled the Maynilad fiasco when she allowed Benpres to get out
of its contract with the MWSS without paying a centavo of its financial
obligations with the government. The Maynilad bailout is Arroyo's guarantee that
Vice President Noli de Castro, a former stalwart in the Lopez-owned ABS-CBN
media network, would not switch sides amid the growing clamor for her to step
down. Instead of reprivatization,
the WPN reiterated its call for full and effective government control of
Maynilad and the complete reversal of the MWSS privatization. Posted by
Bulatlat © 2006 Bulatlat
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Posted by Bulatlat