Philippines: Why richest man's company is under investigation

Manila: PrimeWater Infrastructure Corp, owned by the family of tycoon Manuel "Manny" Villar Jr has come under the scanner.

The government has ordered an investigation into the utility arising from an "overwhelming number" of customer complaints, according to the presidential palace.

PrimeWater has been the subject of multiple complaints over its joint venture agreements (JVAs) with some 100 local water districts across the country.

All told, it serves an estimated 16 million customers. 

The Villars control PrimeWater via Prime Asset Ventures, Inc. (PAVI), a holding company led by CEO Paolo Villar, one of the two sons of property baron Manny Villar with his wife Senator Cynthia Villar.

Villar has an estimated net worth of $17.2 billion as of May 9, 2025, as per Forbes.

Complaints

Customer complaints against PrimeWater have piled up.

In San Fernando, Pampanga (north of Manila), the Commission on Audit (COA) reported that PrimeWater invested only 46.72% of its committed capital expenditure over five years, falling short by approximately ₱396 million. 

Additionally, the company failed to complete a water treatment facility by the agreed deadline, prompting the agency to recommend penalties, including the forfeiture of a 12% performance bond.

Similar issues have emerged in Malaybalay City, Bukidnon, where COA questioned the legality of the 2020 JVA between PrimeWater and the Malaybalay City Water District (MCWD).

Auditors highlighted that the agreement lacked a feasibility study and public consultation.

Residents have reported deteriorating water services, including low pressure and frequent interruptions.

Residents of Sorsogon City served by PrimeWater have also aired complaints, including murky water and frequent interruptions.

In San Jose del Monte, Bulacan, financial declines have also been noted. After entering a JVA with PrimeWater in 2018, the city's water district saw its net income plummet from ₱187 million in 2016 to a loss of ₱5.3 million in 2020. 

Revenue sharing

Government auditors have also cited the disproportionate revenue sharing, where PrimeWater allegedly earned "significantly more".

In Bacolod City, the Bacolod City Water District (BACIWA) experienced a drastic drop in income from ₱623 million in 2019 to ₱48 million after partnering with PrimeWater. 

Bulatlat, a local news outlet, reported that these JVAs effectively privatised public utilities without delivering promised improvements.

PrimeWater's statement

The company has defended its practices as compliant with legal standards.

Recently, President Ferdinand Marcos Jr has ordered an investigation and review of all water concession agreements, while checking whether legal and service standards had been met.

Following the order, PrimeWater issued a statement on May 2: "We welcome an opportunity to open and meaningful dialogue to resolve concerns and commit to cooperating fully with LWUA (local Water Utilities Administration). We assure out public that we are intensifying our initiatives to address the requirements and and satisfy the demand particularly those in challenged services areas.”

Dissatisfaction

However, ongoing audits and public dissatisfaction suggest a need for more work.

At a press briefing on Friday (May 9), Presidential Communications Office Undersecretary and Palace Press Officer Claire Castro said the Local Water Utilities Administration (LWUA) is expected to release its findings “anytime soon.”

“Let's remember, the estimated number of people affected by the poor service of PrimeWater is now 16 million, so we really need to take action quickly,” Castro said in Filipino.

'Political persecution'

Not everyone is happy with the probe: Vice President Sara Duterte, who had a falling out with the president, described the investigation as “political persecution”.

However, Jose Moises Salonga, Administrator and CEO, Local Water Utilities Administration (LWUA), the industry watchdog, said: “We have started (the investigation). We have met the water districts, all of them. We’ve asked for a copy of their contracts (signed) with private joint venture partners.”

The LWUA chief cited to Teleradyo Serbisyo the "overwhelming" number of complaints received regarding PrimeWater’s alleged poor service.

With millions of Filipinos reportedly affected, Manila's response could significantly shape the future of water privatisation efforts in the country.