DOF told: Hold payment of P82-B claims to water firms

MANILA, Philippines – The finance department should hold in abeyance its payment of over P82 billion in compensation to water concessionaires Maynilad Water Services and Manila Water Co. Inc., according to the Department of Justice (DOJ).

In a five-page letter to Finance Secretary Cesar Purisima, the DOJ advised the Department of Finance (DOF) not to act yet on the demand of Manila Water Company Inc. (MWCI) and Maynilad Water Services Inc. for P79 billion and P3.44 billion, respectively, for supposed losses they incurred in the postponement of the increase in their basic charges.

The DOJ refused to issue a legal opinion on the legality and validity of such claims. 

It invoked the sub judice rule, which prohibits comments and disclosures on matters pending with courts, citing a pending case in the Supreme Court filed last year by Bayan Muna party-list Reps. Neri Colmenares and Isagani Zarate seeking to stop payment of the claims.

“Hence, by settled policy and practice, the secretary of justice does not render opinion or give legal advice on matters that are considered sub judice. For the secretary of justice to rule on your query would constitute an unwarranted intrusion into the exercise of judicial powers and functions pertaining to the Supreme Court, a separate and coordinate branch of government, and could subject this department to criticism or in some instances, if applicable, indirect contempt,” read the opinion signed by Chief State Counsel Ricardo Paras III.

“It is our considered view that, at the present state of events, the proper and most prudent course of action for the DOF to take is to maintain the status quo and hold in abeyance any action on the claims filed by MWCI and Maynilad, while waiting for the ruling of the Supreme Court,” it stressed.

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