Water firms don't need to tap loans after earning 'billions' Palace !-- --
Presidential spokesman
"Some of those concessionaires stated that it may affect the service because no banks, loans are forthcoming, I read about that. My reaction is, excuse me, you have reeked billions of profits during the years from 1997 up to the present," Panelo said in a press briefing.
"What do you need loans for? You have the money in your pocket," he added.The government's concession deals with
The deals were extended by 15 years in 2009 or 13 years before they expire.Last month, Duterte scolded water distributors
Water regulator
, Maynilad's controlling shareholder, said while the water concessionaire can finance its current projects, the shortening of the concession term would prevent it from commencing new projects to improve the system. Banks have suspended lending money to Maynilad to finance its new capital expenditure program, the listed investment management and holding company said.
Earlier this week, Duterte said he would offer new contracts to
Panelo said Duterte is bent on running after those who were behind the water concession deals, which the president had described as "onerous.""What is apparent to the president is that there has been a conspiracy between certain parties to commit this colossal fraud and rip-offWho are involved in this conspiracy is another matter and if we find out who they are, then the law has to take its course, regardless of who are involved," the Palace spokesman said.
Panelo also assured the public that the administration would publish the text of the contracts offered to the water firms.
© Pakistan Press International, source