The Palace has confirmed that a significant increase in joint venture agreements between Villar-owned PrimeWater and various local water districts happened in 2019, during the time the Local Water Utilities Administration (LWUA) was under the Department of Public Works and Highways (DPWH), then headed by Secretary Mark Villar.
Palace Press Officer Claire Castro said the issue came up during a meeting on Friday between the Office of the President and LWUA Administrator Jose Moises Salonga in Malacañang. The discussion centered on growing complaints against PrimeWater and the broader problems in water service delivery.
“Nabatid natin ang malawakang problema na naidulot ng kakulangan ng PrimeWater,” Castro said during the Palace briefing. She noted that the surge in agreements occurred “panahon ng nakaraang administration” and under the supervision of DPWH, then led by Villar.
PrimeWater, a private water utility firm owned by the Villar family, has faced mounting criticism over alleged poor service and questionable contracts with local water districts.
Administrator Salonga acknowledged the potential for conflict of interest during that period, saying, “There was a time when LWUA was an attached agency of the DPWH, na possible conflict ng mga namumuno doon.”
He added that their preliminary findings have outlined how local water districts entered into joint ventures with PrimeWater and flagged possible irregularities. “There has been a report, and the report actually mentions something about that,” he said.
Salonga said the agency has already notified relevant parties and is pushing for reforms. But he stressed that their priority is addressing the immediate needs of communities suffering from unreliable water supply.
“The issue now is where do we get the water and how do we deliver it to them,” he said. “We are here to act first, fingerpoint later.”
LWUA was previously under the Department of Health before being transferred to DPWH in 2011 through an executive order. In 2023, President Ferdinand Marcos Jr. placed it under the Department of Environment and Natural Resources’ Water Resources Office.
