COA requests MWSS to prove efforts in collecting P5.071B claim from Maynilad

The Commission on Audit (COA) has requested the Metropolitan Waterworks and Sewerage System (MWSS) Central Office to provide evidence of efforts made to collect a P5.071 billion government claim from Maynilad Water Services Incorporated.

In its 2023 audit, COA cited MWSS's lack of diligence in enforcing this claim, which includes borrowing costs and penalties due to Maynilad's delay in remitting concession fees since 2001.

Despite an order from the Rehabilitation Court in 2007 that Maynilad had successfully implemented debt restructuring, MWSS continues to pursue its claims against Maynilad for payment of interests and penalties.

The Office of the Government Corporate Counsel affirmed on October 5, 2011 that MWSS's claims against Maynilad remain valid despite previous court orders.

During an exit conference in May 2024, MWSS management assured COA auditors that they are actively pursuing disputed claims with Maynilad and agreed to coordinate with OGCC regarding available options for recovery.

As of the report date, MWSS has not submitted any evidence to establish actions taken to pursue the claims, prompting COA to recommend further coordination between Legal Service and Finance Departments.