The Villar family’s long-running connection to the Philippine water business has entered a new legal chapter after the Office of the Ombudsman filed criminal and administrative complaints involving alleged problems with PrimeWater Infrastructure Corp.’s joint venture agreements with local water districts.
Named in the complaints are former senator and businessman Manuel “Manny” Villar Jr., former senator Cynthia Villar, Senators Mark Villar and Camille Villar, and Manuel Paolo Villar, along with PrimeWater executives and officials of several local water districts.
The complaints were filed on September 18, 2026, and have now entered preliminary investigation. This means the allegations remain subject to evaluation and the respondents will have an opportunity to answer them.
Ombudsman cites PrimeWater joint ventures with 75 water districts
Assistant Ombudsman Mico Clavano said the investigation traced back to a report from the Office of the Government Corporate Counsel concerning PrimeWater’s joint venture agreements with local water districts.
According to the Ombudsman, 75 local water districts entered into joint venture agreements with PrimeWater between 2015 and 2022.
The agreements covered areas including the financing, development, rehabilitation, expansion, improvement, operation and maintenance of water-supply and septage services.
The Ombudsman said 19 of the 75 water districts later issued notices seeking pre-termination of their agreements, citing PrimeWater’s alleged inability to meet its obligations. Complaints cited by investigators included alleged interruptions in water supply and concerns regarding water quality.
The anti-graft agency characterized the agreements under investigation as allegedly “grossly disadvantageous” to the local water districts.
That characterization is part of the Ombudsman’s allegations and findings at this stage; it is not a final court determination of criminal liability.
₱65.65 million obligation also cited
A separate issue highlighted by the Ombudsman involves the alleged non-payment for the use or consumption of materials and supplies belonging to local water districts.
Philstar reported that the amount cited by investigators totals ₱65,650,708.07.
The initial water districts identified in connection with the issue were:
- Quezon Metropolitan Water District
- San Pedro Water District in Laguna
- Trece Martires City Water District
The Ombudsman said records from the Commission on Audit contained adverse findings relating to the transactions.
The allegations are being examined in relation to possible violations of Sections 3(e) and 3(g) of Republic Act No. 3019, the Anti-Graft and Corrupt Practices Act.
Who else was named?
The complaints do not involve the Villar family alone.
PrimeWater executives and officials and board members associated with several local water districts were also named.
Philstar reported that PrimeWater president Fe Reblancos and vice president Romeo Sabater were among those included. Local water district officials from the three initially identified districts were also respondents.
The Ombudsman identified the Villar family members as beneficial owners of PrimeWater during the period covered by the investigation.
Manny Villar: “We respect the legal process”
Manny Villar has responded by emphasizing due process.
In a statement released after the Ombudsman announcement, Villar said his family had learned about the complaints through media reports and had not yet received copies of the complaints.
He said the family therefore could not meaningfully respond to the specific allegations at that point.
Villar said the family would respond through the proper legal process and expressed confidence that, once they had the opportunity to examine the allegations and supporting evidence, they could defend their rights and address the matters raised.
He also called for restraint in drawing conclusions before the respondents had been given an opportunity to be heard.
The response is significant because the case is still at the preliminary-investigation stage, where the allegations and the respondents’ explanations remain subject to evaluation.
Why the PrimeWater issue is drawing attention
The case involves more than a private corporate dispute because the joint ventures concerned local water districts and public water services.
The Ombudsman’s investigation is examining whether government officials involved in the agreements may have violated anti-graft laws and administrative rules and whether the transactions placed public resources or interests at a disadvantage.
The Ombudsman has also indicated that the current complaints are only an initial batch.
Assistant Ombudsman Clavano said other water districts remain under investigation, raising the possibility of additional complaints as the review progresses.
PrimeWater has since changed hands
Another important piece of context is that the Villar Group no longer owns PrimeWater.
GMA News reported that the Villar Group sold PrimeWater to Crystal Bridges Holding Corp., associated with businessman Lucio Co, with the transaction completed in 2026.
The change in ownership does not eliminate questions concerning transactions covered by the Ombudsman’s investigation, because the complaints concern joint venture arrangements and events dating from 2015 to 2022.
What happens next?
The immediate next step is the preliminary investigation.
The respondents are expected to receive the complaints and supporting allegations and have the opportunity to submit their defenses.
The Ombudsman will then evaluate the evidence and responses before determining how the cases should proceed.
For now, the central issues remain allegations concerning the terms and performance of PrimeWater’s joint ventures, reported water-service problems, and the alleged ₱65.65-million obligation involving materials and supplies.
The Villar family, meanwhile, maintains that it should be given the opportunity to review the complaints and evidence before conclusions are reached.
The investigation is therefore far from a final judgment. What comes next will depend on the evidence submitted by the Ombudsman and the respondents during the proceedings—and on whether investigators expand the inquiry to additional water districts.
