Marcos Orders Investigation into PrimeWater Following Consumer Complaints

May 01, 2025 5:03 PM

MANILA, Philippines – President Ferdinand Marcos Jr. is set to initiate a probe into PrimeWater, a private water utility firm owned by the influential Villar family, following a surge of complaints over subpar service across the country.

Speaking at a press briefing on Wednesday, April 30, Malacañang Press Undersecretary Claire Castro emphasized the administration’s zero tolerance for inadequate service delivery.

“Poor service has no place under President Marcos Jr.’s administration,” Castro said. “The President will be directing an investigation into the matter.”

Castro informed the media that President Marcos will tap the Local Water Utilities Administration (LWUA) to lead the investigation. LWUA, a government-owned and -controlled corporation (GOCC), oversees water districts across the country. During the Duterte administration, nearly 100 of these districts reportedly entered into joint ventures with PrimeWater, according to Rappler’s records. However, civil society groups estimate the number of such agreements to be as high as 130.

Another possible agency is the Office of the Government Corporate Counsel (OGCC), which is responsible for reviewing contracts involving government-owned and -controlled corporations.

Bulacan province—specifically San Jose Del Monte City—was the first to launch simultaneous investigations at both the provincial and city levels into PrimeWater, following Rappler’s exposé on the prolonged hardships endured by residents since the utility took over local water services.

Over the years, several municipalities have challenged their contracts with PrimeWater in court, but their efforts have largely been unsuccessful. A 2019 report by the Commission on Audit (COA), which assessed the financial performance of water districts, flagged numerous PrimeWater agreements as having income-sharing arrangements that were unfavorable to the government.

Based on Rappler’s count, 12 towns in Ilocos Norte—President Marcos’ home province—are engaged in joint ventures with PrimeWater, including Laoag City, where the provincial capitol is located.

Meanwhile, House Assistant Majority Leader Jay Khonghun has expressed plans to file a resolution calling for a comprehensive investigation into PrimeWater’s alleged failures once Congress reconvenes in June.

Zambales 1st District Representative Jay Khonghun cited mounting frustrations among his constituents in Subic over PrimeWater’s inadequate service delivery.

“This is not about politics. It’s about justice for the consumers. You’ve caused too much hardship already. So many promises you haven’t fulfilled,” he added.

PrimeWater is a fully owned subsidiary of Prime Asset Ventures Inc., headed by Manuel Paolo A. Villar, son of the Philippines’ richest man, Manny Villar, and outgoing Senator Cynthia Villar. His brother, Mark Villar, served as public works secretary during the period when many of these joint ventures were finalized.

Bulacan Vice Governor Alex Castro earlier shared with Rappler that the local government felt “held hostage” by PrimeWater, which maintained that its joint venture agreements fall outside the jurisdiction of local authorities. With many of these contracts spanning 25 years, efforts to terminate them are legally complicated and fraught with challenges.

Castro emphasized that access to clean and sufficient water should not be treated merely as a business venture, but as a basic service that genuinely serves and protects the public. He said: “Ang pangangailangan ng tao sa malinis na tubig, sapat na supply ng tubig ay dapat lang po nararapat na hindi pang negosyo lamang, kundi dapat ay na kinakalinga ang taumbayan.”

Despite the internal rift following her appearance in a political ad with Vice President Sara Duterte, Las Piñas Representative Camille Villar, a member of the influential Villar family, remains on the Marcos-backed Alyansa senatorial slate.

When asked about the president’s continued confidence in Camille Villar, Castro responded, “It will depend on how she will perform, if we will have this trust on her, we have to give it to her but she should prove that she can perform as a leader.”

SOURCES:

https://www.rappler.com/philippines/elections/marcos-orders-investigation-villar-primewater