Philippines: Billionaire Villar family hit with criminal, administrative complaints over PrimeWater deals

Manila: Members of the billionaire Villar family have been slapped with  two counts of criminal and administrative complaints over allegedly "disadvantageous" joint venture deals involving a major water utility and infrastructure corporation they once owned.

The Philippine Office of the Ombudsman has filed criminal and administrative complaints against members of the powerful Villar family on Friday (Sept. 18, 2026).

Among the respondents to the complaints filed by the Office of the Ombudsman include Filipino tycoon Manuel “Manny” Villar Jr., his wife, former senator Cynthia Villar, and their children, incumbent Senators Mark Villar and Camille Villar, over allegedly disadvantageous water-service joint ventures involving PrimeWater Infrastructure Corp, local media reported.

The complaints, announced on Friday (Sept. 18), stem from an investigation into PrimeWater's agreements with dozens of local water districts between 2015 and 2022. 

The Ombudsman said the investigation found what it described as “grossly disadvantageous” joint venture agreements, along with alleged failures by the company to meet its contractual obligations. 

The cases have entered preliminary investigation, meaning the allegations have not been finally adjudicated.

Two graft complaints against the Villar family

Assistant Ombudsman Mico Clavano said the complaints include two counts of graft and administrative charges under the Anti-Graft and Corrupt Practices Act.

Named respondents include Senators Mark and Camille Villar, their parents Manuel and Cynthia Villar, and their brother Manuel Paolo Villar, along with PrimeWater executives and officials of several local water districts.

The complaints concern PrimeWater's joint ventures with local water districts covering the financing, development, rehabilitation, expansion, improvement, operation and maintenance of water and septage services.

The Ombudsman said the investigation was prompted in part by a report from the Office of the Government Corporate Counsel (OGCC) concerning PrimeWater's joint ventures.

75 water districts entered deals with PrimeWater

According to the Ombudsman, 75 local water districts entered into joint venture agreements with PrimeWater between 2015 and 2022.

Of these, 19 issued notices seeking pre-termination of their agreements, citing PrimeWater's alleged inability to fulfil its obligations.

The Ombudsman said complaints included alleged failures to provide uninterrupted water service and concerns over water quality.

The agency also cited Commission on Audit findings involving approximately ₱65.65 million in unpaid obligations relating to the use or consumption of materials and supplies belonging to three local water districts — the Quezon Metropolitan Water District, San Pedro Water District and Trece Martires City Water District.

The Ombudsman said additional water districts remain under investigation and that further cases could follow.

Why Sen. Mark Villar is included

Mark Villar's inclusion has drawn particular attention because he served as secretary of the Department of Public Works and Highways (DPWH) from 2016 to 2021 and was also a member of the board of trustees of the Local Water Utilities Administration (LWUA) during part of the period under investigation.

The Ombudsman has identified the Villar family as beneficial owners of PrimeWater during the period covered by the investigation.

Mark Villar, elected Senator in 2022, has previously maintained that he had “divested” his interest in PrimeWater and that the company was controlled through Prime Asset Ventures Inc., which is associated with his brother Paolo Villar. 

The Ombudsman's position, as reported by Philippine media, differs from that assertion and identifies the family as "beneficial owners".

That ownership question is now part of the evidence that will have to be examined during the proceedings.

In December, the Villars reportedly sold "100% full ownership" of PrimeWater to Puregold's Co family at an undisclosed amount.

Villar family asks for due process

Manny Villar said the family learned of the complaints through media reports and had not yet received copies of the complaints, preventing them from commenting substantively on the specific allegations.

In a statement, the Villar family said it respected the legal process and would respond at the appropriate time and in the proper forum.

The family also said it was confident it would be able to defend its rights after examining the allegations and supporting evidence, and urged that conclusions not be drawn before the respondents had an opportunity to be heard.

What happens next?

The complaints are not convictions or final findings of liability.

The cases are now in the preliminary investigation stage. Respondents will be given an opportunity to submit their responses and supporting evidence.

The Ombudsman will then determine whether there is sufficient basis to pursue criminal charges before the Sandiganbayan, the Philippines' anti-graft court, as well as any administrative proceedings.

The Ombudsman has said the investigation could expand to additional water districts and respondents.

Background: PrimeWater's role in Philippine water services

PrimeWater Infrastructure Corp. developed partnerships with government-owned local water districts through joint venture agreements, allowing it to participate in the financing, rehabilitation, expansion and operation of water systems.

The company's business model placed it in partnerships with local water districts in different parts of the Philippines.

The arrangements have attracted public and government scrutiny over water service interruptions, poor water quality, rates and contractual obligations. 

A House inquiry into PrimeWater's service disruptions and rates was also sought in 2025.

The latest Ombudsman investigation goes beyond a single water district. It examines a broader network of agreements entered into by PrimeWater and local water districts over several years.

A politically significant case

The complaints also come as Mark and Camille Villar serve as senators, making the case politically significant, although the Ombudsman has said the investigation is based on the complaints and evidence concerning the PrimeWater agreements rather than the senators' political affiliation.

The timing has attracted additional attention because both senators are members of the Senate minority and have been involved in the chamber's current political battles. 

The Ombudsman has rejected suggestions that the complaints were filed because the respondents belong to the minority, saying investigations are based on complaints received by the agency.

For now, however, the central issue before investigators is narrower: whether PrimeWater's joint venture arrangements with local water districts violated the country's anti-graft law and whether the respondents can be held liable for the alleged failures and disadvantages identified by investigators.

By the numbers

• 75 — local water districts that entered PrimeWater joint ventures from 2015 to 2022

• 19 — districts that reportedly issued notices seeking pre-termination

• ₱65.65 million — unpaid obligations cited by the Ombudsman involving three water districts

• 2 — counts of graft complaints filed

• 5 — members of the Villar family named: Manuel Villar Jr., Cynthia Villar, Mark Villar, Camille Villar and Paolo Villar

• 32 — local water district officials also identified in the preliminary investigation, according to Philstar's report

The case remains at the complaint and preliminary-investigation stage. The allegations must still be tested through due process, and the filing of the complaints does not establish guilt