Social media peeps have been pushing different theories of the Ayalas surprising move by selling 25% of the Manila Water shares to the Razons.
To end the speculation game, Atty. Trixie Cruz-Angeles of the FB Page Luminous by Trixie Cruz-Angeles & Ahmed Paglinawan gave us a summary of what transpired behind the Ayalas selling “Manila Water majority shares” to the Razons drama.
In the FB post, Angeles offered two possible theories of her own to explain the Ayala move: 1. The Razons are deemed close to the President and the Ayalas believe that the president look kindly on the corporation and eventually reinstate their old contracts. 2. evade criminal prosecution.
Will the Ayalas succeed?
According to Atty. Trixie, judging by the President’s response, it appears that the Ayalas strategy is an epic FAIL.
You may read the original article below.
So this is what happened.
The President sent new draft contracts to the water concessionaires, taking to the onerous provisions, giving the option to continue handling the water distribution and billing without:
1. charging the public for their taxes and losses due to lawsuits
2. unreasonable rate increases
3. shields from their breaches of contract to provide services such as sewerage and potable water
(there are more, but these are the major ones).
Instead of responding, Manila Water apparently, tried to get an audience with the president, but was rejected, possible because they had no action on the president’s draft proposals. Instead, they wanted to talk, so the president read this, as wanting to “negotiate” beyond what he was prepared to offer them.
In the meantime, they sold shares to Enrique Razon whom many believe has connections with the President’s men. Razon is handling the Wawa dam project, which he coopted from the Violago group, the original proponent. Razon acquired majority voting rights in Manila Water in a move many believe is to make the president look kindly on the corporation and eventually reinstate their old contracts.
Or maybe simply evade criminal prosecution.
Instead, the president, possibly noting the Manila Water moves and the repeated and numerous requests by his own people to sit and meet with MW executives, issued another threat:
Pay the money you owe the consumers when you did not give sewerage facilities for which you collected fees.
Ayala strategy to get an inroad into Duterte’s good graces and wriggle their way out of this mess? FAIL.