GOOD MAJAYJAYENS

Majayjay, Laguna

November 11, 2015

THE OFFICE OF THE GOVERNOR
Province of Laguna
Sta. Cruz, Laguna
Attn.:

ATY. DULCE H. REBANAL

Provincial Administrator

RE:

Water Issues/Problems in the

Muninicipality of Majayjay,
Laguna (Majayjay)

Gentlemen/Mesdames:
Thank you for your letter of November 5, 2015, inviting our
organization to join the Technical Working Committee to address the
present water crisis in our town. We appreciate your concern for our town.
However, we submit that the present water crisis in our town is a local
matter which can and should be addressed solely by our local government.
Our town has the necessary resources to address the present water crisis in
our town if only our local officials will properly manage and use the
financial resources of our town. From our investigation, it appears that the
water crisis in our town is man-made and artificial and the same is a mere
ruse to enable a private company to control the abundant water resources of
our town on the pretext that the private company will rehabilitate the water
system of our town. We cannot and shall never allow any private
company to control and exploit the abundant water resources of our
town especially if the same is being made thru the use of devious
means.
Further, and with all due respect, we submit that the Office of the
Hon. Governor, or even the Provincial Government of Laguna, should not
be involved in addressing the present water crisis in our town as it will give
rise to potential conflict of interest and/or giving unwarranted
benefits/advantage or preference to a private company considering the
Provincial Government of Laguna is minority stockholder of Laguna AAA
Water Corp., (Laguna Water) which has previously expressed to us the

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intention to rehabilitate our towns water system and to enter into a bulk
water contract with our town. In fact, Mr. Real C. Magtangob, Regulatory
and External Affairs of Laguna Water, had categorically informed the
members of our group in a meeting that Laguna Water is now negotiating
with ISRAEL BUILDERS & DEVELOPMENT CORPORATION (IBDC)
for the transfer of the alleged bulk water contract of IBDC with our town.
At this point, we would like to inform you that IBDC does not have
any contract to transfer to you because the bulk water contract of IBDC
with our town has been found and declared anomalous and unlawful by the
OMBUDSMAN as the same is contrary to Sec. 3 (e) of Republic Act No.
3019, otherwise known as Anti-Graft and Corrupt Practices Act. In the
same manner, the two (2) separate water contracts entered into by our town
with IBDC for the purpose of supplying water to the Municipalities of
Lumban and Sta. Cruz, Laguna were also found anomalous and unlawful as
those water contracts are contrary to Sec. 3 (g) of the Republic Act No.
3019.
On account of which, the OMBUDSMAN recommended the filing
in the Sandiganbayan of an Information for violation of Sec. 3 (e) of the
Republic Act No. 3019 against the accused Teofilo B. Guera, former
Municipal Mayor, Ana Linda C. Rosas, Municipal Vice-Mayor, and
Sangguniang Bayan Members, Lauro C. Mentilla, Mauro C. Aragon,
Juancho M. Andaya, Antonio S. Zornosa, Jr., Mario O. Mercolisa, Jr.,
Jovannie Ann G. Esquillo and Bernaldo I. de Villa and IBDCs Arcadio B.
Gapangada, Jr. On the other hand, for executing the two (2) water contracts
which are manifestly and grossly disadvantageous to our town, the
OMBUDSMAN recommended the filing of the two (2) separate
Informations for violation of Sec. 3 (g) of Republic Act No. 3019 against
said Teofilo B. Guera. A copy of the Resolution dated February 21, 2013 of
OMBUDSMAN, the Information for violation of Sec. 3 (e) of Republic
Act No. 3019 and two (2) Informations for violation of Sec. 3 (g) of
Republic Act No. 3019 are hereto attached as Annexes A, B, C and
D, respectively.
The aforestated three (3) Informations for violation of Republic Act
No. 3019 are now docketed in the Sandiganbayan as Criminal Case Nos.
SB14CRM0228, SB14CRM0229 and SB14CRM0230. All the above-

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named accused in the said criminal cases were already arraigned and
set to undergo for trial.
Moreover, for authorizing the execution by our town of the bulk
water contract in violation of Republic Act No. 3019, the public
respondents were found GUILTY of the administrative offense of grave
misconduct and they were meted the penalty of dismissal from the service,
with the accessory penalties of cancellation of eligibility, forfeiture of
retirement benefits, perpetual disqualification from holding public
office, and bar from taking civil service examinations. A copy of the
Decision dated February 21, 2013 of the OMBUDSMAN is hereto attached
as Annex E.
Considering the ruling and finding of the OMBUDSMAN that the
bulk water contract of IBDC with our town was executed in violation of
Republic Act No. 3019, we submit that such contract is contrary to law and
thus it is null and void. As such, IBDC does not have any contract or right
to transfer to Laguna Water. Stated differently, Laguna Water cannot
acquire any right from IBDC with respect to the illegal bulk water contract
of IBDC with our town.
It bears to remind to you that being null and void, the subject
contract confers no rights nor does not impose any duty. It neither
binds nor bars any one.1 A void or inexistent contract is one which has no
force and effect from the very beginning, as if it had never been entered
into, and which cannot be validated either by time or by ratification. A void
or inexistent contract is equivalent to nothing; it is absolutely wanting
in civil effects.2 Mere lapse of time cannot give effect to contracts that
are null and void.3
As minority stock holder of Laguna Water and as an agency of the
government, we also respectfully submit that the Provincial Government of
Laguna should not authorize and sanction the transfer of the non-existing
right or unlawful bulk water contract of IBDC to Laguna Water. Otherwise,
we will construe the same as a violation or circumvention of the finding
OMBUDSMAN that the said bulk water contract is unlawful and violative
1

Caro v. CA, 158 SCRA 270

Civil Code of the Philippines annotated by Arturo M. Tolentino, Vol. IV, Page 629, 1991 edition
3
Civil Code of the Philippines Annotated by Edgardo M. Paras Vol IV, Page 809, 1994 Edition.
2

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of Republic Act No. 3019 and for which we will take the appropriate
criminal and administrative actions against the erring public officials.
We know for a fact that the absolute majority stockholder (70%)
of Laguna Water is AAA Water Corporation, of which the absolute
majority stockholder (70%) is Manila Water Company, Inc. AAA
Water Corporation is the same water company which has been mentioned
by IBDC as the company that will provide funding for its bulk water
contract with our town. As a result of which, in a letter dated June 26, 2012
of our legal counsel, copy of which was duly furnished to Manila Water
Company, we have duly informed AAA Water Corporation and its
responsible officers that the subject water contract is tainted with
irregularity/illegality and thus we have warned that we will hold as coconspirators the responsible officers of the AAA Water Corporation in the
execution and consummation of the said unlawful bulk water contract. A
copy of our legal counsels letter dated June 26, 2012 is hereto attached as
Annex F.
To further inform AAA Water Corporation that the subject bulk
water contract is anomalous and unlawful, our legal counsel sent a letter
dated June 28, 2012 requesting AAA Water Corporation to refrain and
desist from entering into and executing the Addendum and Revision to the
Contract to the Supply of Bulk Water between IBDC and Majayjay,
otherwise we will hold criminally responsible the responsible officers and
members of the Board of Directors of AAA Water Corporation. A copy of
our legal counsels letter dated June 28, 2012 is hereto attached as Annex
G.
As it is stands now, and if Laguna Water will enter into contract with
IBDC for the transfer of the latters alleged bulk water contract with our
town and considering the absolute majority stockholder of Laguna Water is
AAA Water Corporation, we further submit that the intended transfer of the
alleged bulk water contract of IBDC with our town to Laguna Water has no
other evident intention but to circumvent the finding and ruling of
OMBUDSMAN that the subject bulk water contract is anomalous and
unlawful as the same is violative of Republic Act No. 3019.
Accordingly, we hereby formally inform your good office that your
participation and intervention in addressing the water crisis in our town

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will give rise to potential conflict of interest and/or giving unwarranted

benefits/advantage or preference to Laguna Water considering the
Provincial Government of Laguna is a minority stockholder of Laguna
Water and that any contract involving the transfer of the alleged bulk water
contract of IBDC to Laguna Water is unlawful and clear violation and
circumvention of the finding and ruling of the OMBUDSMAN that the
subject bulk water contract is unlawful and violative of RA No. 3019. Our
group will not object to a fair, reasonable and just contract duly executed in
accordance with law and with appropriate OPEN PUBLIC HEARING for
the exploration of our towns water resources as long as the same shall and
will be completely free from any participation and intervention (directly
or indirectly) by IBDC to avoid any violation of the said finding and
ruling of the OMBUDSMAN.
We trust that we have made clear our position on the matter.
Very truly yours,
NAME

SIGNATURE

ADDRESS

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Froilan T. Gruezo

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Atty. Paterno L. Esmaquel

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Copy Furnished:
LAGUNA AAA WATER CORP.
Unit 11-12 Banawe de Sta. Rosa Building
F. Reyes Road, Brgy. Balibago,
Sta. Rosa, Laguna
KGG. VICTORINO C. RODILLAS
Municipal Mayor
Majayjay, Laguna
KGG. MEMBERS OF THE
SANGGUNIANG BAYAN
c/o KGG. Valeriano O. Vito, Jr.
Vice Mayor
Majayjay, Laguna

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