Maynilad:
Broken promises

Basahin ang artikulong ito sa Pilipino

The current and previous regimes have been avid apostles of the privatization policy dictated by the International Monetary Fund and the World Bank. Ever since privatization went full throttle under the Aquino and Ramos regimes up to the Estrada and Macapagal-Arroyo regime's implementation of the policy, it has continuously plunged the Filipino people to unbearable depths of poverty.

Successive regimes have always claimed that privatization would benefit the people. Competition would supposedly lower the prices of commodities and improve service facilities. In fact, however, privatization's real objective is to cut down on or cut off government spending on social services in order to avoid budgetary deficits and channel the country's funds to debt servicing.

The US-Ramos regime enacted the Water Crisis Act in 1995 saying the MWSS is incapable of delivering efficient water services to Metro Manila. The MWSS is the world's largest water services company privatized.

Two companies acquired the MWSS�Maynilad Water Services covering western Metro Manila and several adjacent municipalities, and the Manila Water Company, Inc. (MWCI) covering the eastern part. Maynilad is 49% owned by the Lopezes' Benpres Holdings Corporation, 40% by the French multinational Suez Lyonnaise des Eaux and 1% by Metrobank. Manila Water, on the other hand, is 40% owned by the Ayalas. Its largest partners are Bechtel Overseas Corp., an American company and United Utilities Plc. of the United Kingdom.

At the onset, Maynilad offered to lower its rate to P4.97 per cubic meter while MWCI claimed it could lower its rate to P2.32 per cubic meter.

The two companies hold 25-year government concessions. MWSS workers vehemently protested the privatization of the company. Fifty-seven percent or 5,489 out of the company's 10,000 workers were laid off. The remaining 4,331 were subjected to "probation" while being gradually laid off for various reasons, including forced retirement. After a few months, only 1% of the entire workforce was retained as regular employees.

January 2003
English Edition

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