The Office of the Ombudsman has filed criminal and administrative complaints against members of the Villar family and several PrimeWater and local water district officials over allegedly “grossly disadvantageous” joint venture agreements (JVAs) involving Prime Water Infrastructure Corporation (PWIC).
Named respondents include Senators Mark and Camille Villar, former Senate President Manny Villar, former Senator Cynthia Villar, and Manuel Paolo Villar. The Ombudsman identified Mark Villar, a former Department of Public Works and Highways (DPWH) secretary, as among the beneficial owners of PWIC and Prime Asset Ventures Incorporated (PAVI).
The investigation followed a report from the Office of the Government Corporate Counsel (OGCC) concerning 75 local water districts that entered into JVAs with PWIC from 2015 to 2022.
The agreements covered the financing, development, rehabilitation, expansion, improvement, operation and maintenance of water supply and septage services within the jurisdictions of the participating water districts.
The Ombudsman said the investigation was prompted in part by complaints over alleged interruptions in water service and concerns about water quality. Some local water districts have also raised issues concerning their agreements with PWIC.
“These include questions on the joint venture agreements vis-a-vis the deficient service provided by PWIC, and how these transpired during the time of then DPWH Secretary and Local Water Utilities Administration Board of Trustees Member Mark A. Villar,” the Ombudsman stated.
Records from the Commission on Audit (COA) also figured in the investigation. The Ombudsman said adverse findings resulted in Notices of Charge (NCs), including findings involving PWIC’s alleged non-payment for materials and supplies used or consumed from the inventories of local water districts.
For the initial cases involving the Quezon Metropolitan Water District, San Pedro Water District in Laguna, and Trece Martires City Water District, the Ombudsman placed PWIC’s unpaid obligations at ₱65,650,708.07.
Among the other respondents are PWIC/PAVI President Fe Rebancos and PWIC Vice President Romeo Sabater, as well as the general managers of the three water districts: Enrico Pasumbal of Quezon Metropolitan Water District, Guillermo Pili Jr. of San Pedro Water District, and Juliet Ocampo of Trece Martires City Water District.
Members of the respective Joint Venture Selection Committees and boards of directors of the three water districts were also included in the complaints.
The Ombudsman said the respondents are being investigated for alleged violations of Sections 3(e) and 3(g) of Republic Act No. 3019, or the Anti-Graft and Corrupt Practices Act. The agency also said some of the questioned acts may constitute malversation of public funds, while government personnel involved may face administrative complaints for grave misconduct under the 2017 Rules on Administrative Cases in the Civil Service.
Assistant Ombudsman Mico Clavano said the cases are now undergoing preliminary investigation and that the list of respondents is not yet final, as other water districts remain under scrutiny.
“This is the initial list and there are still more water districts under investigation, and expectantly, more cases in the pipelines,” Clavano said.
The Villar family, meanwhile, said it has yet to receive copies of the complaints and therefore could not respond to the specific allegations.
“We have learned through media reports of the complaints reportedly filed before the Office of the Ombudsman. As of this time, we have yet to receive copies of the complaints and therefore cannot meaningfully comment on their specific allegations,” Manny Villar said in a statement.
He said the family respects the legal process and will respond once given the proper opportunity to review the allegations and evidence.
“We are confident that, once given the opportunity to examine the allegations and the evidence supporting them, we will be able to fully and properly defend our rights and address the matters raised against us,” he added.
Villar also appealed for restraint while the proceedings are ongoing.
“[W]e ask that the legal process be allowed to take its course and that conclusions not be drawn before the parties have been afforded the opportunity to be heard.”
The complaints remain subject to the preliminary investigation process, during which the respondents will have the opportunity to answer the allegations.