By Jes Tirol
Proem
Since the time of the Spaniards until the present the central government in Manila has a tendency to equate the whole country with the conditions or situation in Metro Manila.
It is said that 90 percent of all the money in the Philippines circulates around Metro Manila and the remaining 10 percent are shared by other places in the country.The most recent faux pas of the central government in Manila is the bailout of the Maynilad Water Services operated by the Lopez family.
Historical Background
The water services in Metro Manila was owned and operated by the government through the Manila Waterworks and Sewerage Services (MWSS). It was very inefficient and always losing money in its operation.
In 1997 it was decided to let private entities run and operate the water services in Metro Manila. The whole area was divided into two parts. The Ayala Group won the concession to operate the eastern portion while the Lopez Group won the concession to operate the western portion of the service area. The MWSS became only the supervising agency of the government but it is still the owner.
The eastern portion manage by the Ayala Group is functioning well and is profitable. The western portion manage by the Lopez Group is not functioning well and not profitable.
The Proposal Bailout
The Maynilad Water Service managed by the Lopez Group has already incurred P8 Billion worth of debts. This includes rental to the MWSS and debts to the banks. The Philippines Government under President Gloria Macapagal-Arroyo has agreed to assume the P8 Billion indebtedness and convert it into equity or capitalization in the Maynilad Water Service Company.
In effect the Philippines Government is buying something that it already own. In addition, the government will pay the debts of Maynilad to the banks that amount to billions of pesos. Why would the government do it? Where will the government get the money to pay the debts of Maynilad? The answer of course is from the taxes paid by the people of Philippines.
Rewarding the Inefficient
And why would the government reward the inefficient? The eastern portion of the concession under the Ayala Group is profitable and paying to the government. Why would the government pay for the losses of the western portion of the concession?
The answer put forward is to prevent the interruption of the water service to the western portion of Metro Manila. This is a good reason but the solution is wrong. Why would the people of the whole Philippines, including Bohol, help in paying the losses? We have not benefited from the Maynilad concession, why would our taxes be used to pay for its debts? Is it not immoral?
The Prodigal Son Concept
The government, through the MWSS has already given the rights to operate the water services to two groups. One is doing well but the other is not. President GMA is acting like the good father in the Biblical story of the prodigal son. The prodigal son wasted his money but was still taken back by his good father. There is no problem in the Biblical story because the good father owned all the money and property that he gave away to his son. In the case of President GMA, she is giving away money that she does not own.
Even if in theory the bailout can be economically justified, the morality of the situation still sinks. Why would the 75 million Filipinos living outside the concession area suffer for the 5 million Filipinos within the concession area? Is it not that the concern of the President is for the greatest good for the greatest number? Why sacrifice the 75 million Filipinos who are also suffering from want for the sake of 5 million Filipinos?
The case of Maynilad is a good example of the mentality of "imperial Manila." The central government always thinks that a problem in Manila has the priority to the rest of the country. This is another issue that the insurgents from the left, center or right, can exploit to further destabilize our country. When can our national leaders learn to take a perspective considering the welfare of the whole country? (published by the Bohol Chronicle in March 2004)
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Topic: Metro Manila is not the Philippines (Read 2567 times)