MANILA, Philippines — The Office of the Ombudsman has filed criminal and administrative complaints against members of the Villar family and several PrimeWater and local water district officials over allegedly disadvantageous joint venture agreements involving water services.
The complaints, filed on September 18, have entered preliminary investigation and involve Senators Mark Villar and Camille Villar, their brother Manuel Paolo Villar, and their parents, former senators Manny Villar and Cynthia Villar. PrimeWater executives and officials of several local water districts were also named as respondents.
Assistant Ombudsman Mico Clavano said the complaints stem from an investigation into joint venture agreements between PrimeWater Infrastructure Corp. and local water districts covering 2015 to 2022.
According to the Ombudsman, 75 local water districts entered into such agreements with PrimeWater during the period. The arrangements covered the financing, development, rehabilitation, expansion, improvement, operation and maintenance of water supply and septage facilities.
But investigators said problems emerged in a number of those agreements.
19 water districts sought early termination
The Ombudsman said 19 of the 75 local water districts issued notices of pre-termination, citing PrimeWater’s alleged inability to fulfill its obligations.
Among the concerns cited were alleged interruptions in water supply and complaints involving water quality.
Clavano said the agreements examined by investigators were found to be allegedly “grossly disadvantageous” to the local water districts.
The initial complaints focus on three water districts:
- Quezon Metropolitan Water District
- San Pedro Water District in Laguna
- Trece Martires City Water District
The Ombudsman also cited Commission on Audit findings involving PrimeWater’s alleged failure to pay for the use or consumption of materials and supplies belonging to the water districts.
For the three districts initially covered, the reported unpaid obligations totaled approximately ₱65.65 million.
What laws are involved?
The complaints include alleged violations of Sections 3(e) and 3(g) of Republic Act No. 3019, or the Anti-Graft and Corrupt Practices Act.
Section 3(e) generally covers acts that cause undue injury to a party or provide an unwarranted benefit, advantage or preference through specified forms of misconduct. Section 3(g) concerns government contracts or transactions that are manifestly and grossly disadvantageous to the government.
The Ombudsman has not yet made a final determination of liability. The complaints are currently undergoing preliminary investigation, during which respondents will have an opportunity to answer the allegations.
Why Mark Villar is specifically being examined
The investigation also draws attention to Mark Villar’s previous government positions.
During part of the period covered by the investigation, Mark Villar served as secretary of the Department of Public Works and Highways and as a member of the Local Water Utilities Administration Board of Trustees. The Ombudsman has identified him and other members of the Villar family as beneficial owners of PrimeWater during the period being investigated.
The agency has also named PrimeWater President Fe Rebancos and Vice President Romeo Sabater, along with managers, board members and joint venture selection committee members connected to the three water districts initially covered by the complaints.
More PrimeWater cases could follow
The Ombudsman has indicated that the three water districts are only the initial batch.
Clavano said other water districts remain under investigation and that additional cases could be filed as the inquiries continue.
That means the current complaints could potentially be only the beginning of a broader examination of PrimeWater’s agreements with local water districts.
Villar family: We will answer in the proper forum
Manny Villar said the family learned about the complaints through media reports and had not yet received copies of the documents at the time of his statement.
The former senator said the family respects the legal process and intends to respond once it has had the opportunity to examine the allegations and supporting evidence.
The Villar family has maintained that it will defend its rights through the appropriate legal process and urged that conclusions not be reached before the respondents are given an opportunity to be heard.
The bigger question now
The immediate issue is no longer simply whether complaints have been filed—the Ombudsman investigation has already moved into the preliminary-investigation stage.
The bigger question is how far the inquiry will expand.
With 75 local water districts reportedly entering joint ventures with PrimeWater during the period under review, and 19 later issuing notices of pre-termination, investigators have signaled that additional water districts and potentially more complaints remain under examination.
For now, however, the allegations remain allegations. The respondents are entitled to due process and an opportunity to respond before the Ombudsman determines whether the complaints should proceed further.
One thing is clear: the PrimeWater controversy has entered a new legal phase—and the next developments could determine whether the current complaints remain limited to three water districts or become part of a much wider investigation.
