MANILA — The Office of the Ombudsman has filed graft and administrative complaints against members of the Villar family and other officials over allegedly poor water service under joint venture agreements between PrimeWater Infrastructure Corp. (PWIC) and local water districts.

A report from the Office of the Government Corporate Counsel showed that 75 local water districts entered into joint ventures with PWIC from 2015 to 2022. The Ombudsman found the agreements “grossly disadvantageous.”

Assistant Ombudsman Jose Dominic “Mico” F. Clavano IV said Friday that 19 of the 75 local water districts had issued notices of pre-termination over PWIC’s alleged failure to meet its obligations. A notice of pre-termination signals a district’s intent to end its contract.

“It has reportedly failed to supply uninterrupted water resources and has instead provided poor drinking water standards,” Mr. Clavano told a news briefing in mixed English and Filipino.

According to Mr. Clavano, the agreements covered the financing, development, rehabilitation, expansion, improvement, operation and maintenance of water supply and septage facilities. Because those functions span the full chain of water delivery, the terms of each joint venture directly shape the level of service residents receive.

The initial complaints involve the Quezon Metropolitan Water District, the San Pedro Water District and the Trece Martires City Water District.

Citing Commission on Audit records, the Ombudsman said PWIC had not paid for its use or consumption of materials and supplies from the three water districts, with the unpaid obligations totaling P65.65 million.

The complaints name former Public Works Secretary Mark A. Villar, whom the Ombudsman identified as a beneficial owner of PWIC and Prime Assets Ventures, Inc., as well as Manuel B. Villar Jr., Cynthia A. Villar, Camille A. Villar and Manuel Paulo A. Villar — members of one of the Philippines’ most prominent political and business families. Also named were PWIC executives, along with officials and members of the joint venture selection committees and boards of the three water districts.

The complaints allege violations of Republic Act No. 3019, the Anti-Graft and Corrupt Practices, a 1960 statute that penalizes corrupt practices by public officers.

Mr. Clavano said the complaints were filed Friday and have entered preliminary investigation, a stage at which the respondents will be given an opportunity to answer the allegations and at which it will be determined whether the evidence supports formal charges in court. He added that the Ombudsman had received complaints from residents about interrupted water supply and unclean water.

The Ombudsman said more water districts remain under investigation, with more cases expected.

“[T]here are still more water districts under investigation, and expectantly more cases in the pipelines,” Mr. Clavano said.

Reporting by Mark Joseph M. Sanchez, BusinessWorld. Source: Ombudsman files graft raps vs Villars over PrimeWater deals