Title
National Water Crisis Act of 1995
Law
Republic Act No. 8041
Decision Date
Jun 7, 1995
The National Water Crisis Act of 1995 aims to address the water crisis in the Philippines by establishing a Joint Executive-Legislative Water Crisis Commission, implementing penalties for unlawful acts related to water utilities, and allowing the President to revamp and privatize water agencies.

Questions (Republic Act No. 9344)

RA 8041 is the “National Water Crisis Act of 1995.” It declares the State’s policy to adopt urgent and effective measures to address the nationwide water crisis affecting health and well-being, food production, and industrialization, including supply, distribution, finance, possible privatization of state-run water facilities, protection/conservation of watersheds, and preventing waste/pilferage—specifically including graft and corruption in water agencies.

The Commission is chaired by the Executive Secretary and includes the Secretaries of DPWH and DENR, the chairmen of appropriate Senate and House committees as designated by House and Senate leaders, and a minority representative from each House. It also has a technical staff comprised of representatives from NWRB, MWSS, LWUA, appropriate Senate/House committees, and the certified workers’ union in affected water institutions.

They include: nationwide consultations and in-depth study/review of the water supply and distribution structure; enhancing cooperation/coordination between Congress and the executive in formulating and implementing policy; recommending continuous effective monitoring of the water supply and distribution system; and conducting continuing studies on policy options and recommending legislative/remedial measures.

It may secure assistance from government agencies (technical information, reports, recommendations/plans); designate watershed areas where developmental undertakings are to be suspended; and generally exercise all necessary, relevant, and incidental powers to achieve its objectives.

For projects under BOT and/or related schemes, within one (1) year after effectivity, the President may enter negotiated contracts for financing, construction, repair, rehabilitation, improvement, and operation of water facilities/projects increasing water supply, treatment, and distribution. Limitation: there is no government financing or financing guarantee except for acquisition of right-of-way.

Contractors must have proven competence and experience in similar projects, competent key personnel, efficient and reliable equipment, and sound financial capacity.

Within six (6) months from approval/effectivity of the Act, the President may revamp executive leadership and reorganize MWSS and LWUA, including privatization of any/all segments, operations, or facilities if necessary. The President may abolish/create offices, transfer functions/equipment/properties/records/personnel, and institute drastic cost-cutting measures.

In implementing the reorganization/privatization, the prescriptions of RA 7430 (Attrition Law) shall not apply. However, nothing in Section 7 may result in diminution of current salaries and benefits. Phased-out officials/employees are entitled to benefits as may be determined by existing laws.

Compensation of MWSS and LWUA personnel may be upgraded at rates commensurate to improved/efficient revenue collection. The upgrade is exempt from RA 6750 (Salary Standardization Law) to take effect upon a reduction of non-revenue water to forty percent (40%), with approval by the Boards of Trustees of MWSS and LWUA of their budgets.

Examples include: destroying/damaging/interfering with water utility works; malicious acts injuriously affecting quantity/quality or flow and measurement/measurement regulation; preventing/obstructing survey/works/construction of access roads and water mains; tapping/making connections without prior authority/consent; tampering/installing/using tampered meters or devices to steal/interfere with accurate registry; using/receiving direct benefit with knowledge of diversion/tampering/illegal connection at time of use; stealing water meters/pipes/facilities; stealing water for profit/resale; knowingly possessing stolen/tampered meters; and knowingly/willfully allowing the occurrence of any of the foregoing.

The presence of enumerated circumstances constitutes prima facie evidence of theft/pilferage/unlawful acts under Section 8. Examples: illegal/unauthorized tapping to the main/distribution pipe; existence of illegal connection like reversed meter/shortened vane wheel/bypass adversely affecting meter registration; bored hole in meter glass cover or parts of meter including vertical vane; tampered or fake seals; reversed meter with rod/wire/stick or magnet use and similar devices; destruction of meter protection/accessories; abnormal imprints/traces/marks in the meter assembly.

No. The prima facie shall not apply to tenants who have occupied the house or dwelling for ninety (90) days or less.

Aggravating circumstances include: (1) the violation is committed in conspiracy with at least another person (both as principals); (2) committed by or in connivance with a private plumber or an officer/employee of the water utility concerned (all considered principals); and (3) the violation is coupled with sale from an illegal/unregistered/unauthorized source or from a source with a tampered meter.

The water utility may disconnect services five (5) days after service of written notice (except Sundays/holidays) and deny restoration without need of a court or administrative order when prima facie evidence of theft/pilferage is established under Section 8. Notice must have been issued even upon discovery for the first time of presence of any enumerated circumstances. For second-time discovery, a written notice of seventy-two (72) hours is necessary to effect disconnection.

Service shall not be disconnected or shall be immediately restored upon deposit by the person concerned of the difference in billing. The deposit is credited against future billings with legal interest where alleged theft/pilferage/current diversion has not been committed, without prejudice to indemnification for damages under the Civil Code and existing laws.

General: imprisonment of six (6) months to two (2) years and a fine not exceeding double the value of water stolen or damaged facilities. If assisted by a plumber/officer/employee of the water utility, that employee/officer/plumber is punished by imprisonment of two (2) years to six (6) years. If water is stolen for profit or resale, offender is punished with imprisonment of six (6) to twelve (12) years.

Liability is imposed on the chairman, president, general manager, administrator, and officers thereof who knowingly permitted, or are otherwise responsible for, the commission of the offense.


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