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S. No. 2061 H. No. 14471 / 91 OG No. 32, 4991 (August 7, 1995) ; 5 VLD 2d 329 ;
Impl. Rules of RA 8041 ; 5 VLD 2d p. 335

[ REPUBLIC ACT NO. 8041, June 07, 1995 ]

AN ACT TO ADDRESS THE NATIONAL WATER CRISIS AND
FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in

Congress assembled:

SECTION 1. Short Title. — This Act shall be known as the "National Water Crisis Act
of 1995."

SEC. 2. Declaration of Policy. — It is hereby declared the policy of the State to adopt
urgent and effective measures to address the nationwide water crisis which adversely
affects the health and well-being of the population, food production and
industrialization process.

Pursuant thereto the government shall address the issues relevant to the water crisis
including, but not limited to, supply, distribution, finance, privatization of state-run
water facilities, the protection and conservation of watersheds and the waste and
pilferage of water, including the serious matter of graft and corruption in all the water
agencies.

SEC. 3. Organization of Joint Executive-Legislative Water Crisis Commission. —

Within thirty (30) days after the effectivity of this Act, there shall be organized a Joint
Executive-Legislative Water Crisis Commission. The Commission shall be chaired by
the Executive Secretary, with the secretaries of the Department of Public Works and
Highways and the Department of Environment and Natural Resources, and the
chairmen of the appropriate Senate and House committees, as designated by the leaders
of both Houses of Congress, as well as a representative of the minority from each
House, as members.

There shall be a technical staff constituted by representatives of the National Water

Resources Board (NWRB), the Metropolitan Waterworks and Sewerage System
(MWSS), the Local Water Utilities Administration (LWUA), the appropriate
committees of the Senate and the House, and the certified workers' union in the affected
water institutions.

SEC. 4. Purposes and Objectives. — The Commission shall have the following
purposes and objectives:

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a. To undertake nationwide consultations on the water crisis and in-depth and

detailed study and review of the entire water supply and distribution structure;
b. To enhance and facilitate cooperation and coordination between Congress and the
executive department in formulating and implementing the government's water
crisis management policy and strategy;
c. To recommend measures that will ensure continuous and effective monitoring of
the entire water supply and distribution system of the country; and
d. To conduct continuing studies and researches on policy options, strategies and
approaches to the water crisis including experiences of other countries similarly
situated, and to recommend such remedial and legislative measures as may be
required to address the problem.

SEC. 5. Powers and Functions. — To carry out the aforementioned purposes and
objectives, the Commission is hereby authorized:

a. To secure from any department, bureau, office, agency or instrumentality of the

government such assistance as may be needed, such as technical information, the
preparation and production of reports, and the submission of recommendations or
plans, as it may require;
b. To designate by resolution the watershed areas in which developmental
undertakings are to be suspended; and
c. Generally, to exercise all the powers necessary, relevant and incidental to attain
the purposes and objectives for which it is organized.

SEC. 6. Negotiated Contracts. — For projects to be implemented under Build-Operate-

Transfer (BOT) and/or related schemes, the President of the Republic may, for a period
of one (1) year after the effectivity of this Act, enter into negotiated contracts for the
financing, construction, repair, rehabilitation, improvement and operation of water
facilities and projects related to increasing water supply, its treatment and its
distribution to industrial and household consumers: Provided, That there is no
government financing or financing guarantee for the contracts, except for the
acquisition of right-of-way.

The contracts shall be awarded only to contractors with proven competence and
experience in similar projects, competent key personnel, efficient and reliable
equipment, and sound financial capacity.

SEC. 7. Reorganization of the Metropolitan Waterworks and Sewerage System (MWSS)

and the Local Waterworks and Utilities Administration (LWUA). - Within six (6)
months from the approval of this Act, the President of the Republic is hereby
empowered to revamp the executive leadership and reorganize the MWSS and the
LWUA, including the privatization of any or all segments of these agencies, operations
or facilities if necessary, to make them more effective and innovative to address the
looming water crisis. For this purpose, the President may abolish or create offices,
transfer functions, equipment, properties, records and personnel; institute drastic cost-
cutting and other related measures to carry out the said objectives. Moreover, in the
implementation of this provision, the prescriptions of Republic Act No. 7430, otherwise
known as the "Attrition Law," shall not apply. Nothing in this section shall result in the

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diminution of the present salaries and benefits of the personnel of the MWSS and the
LWUA: Provided, That any official or employee of the said agencies who may be
phased out by reason of the reorganization authorized herein shall be entitled to such
benefits as may determined by existing laws.

The President may upgrade the compensation of the personnel of the MWSS and the
LWUA at rates commensurate to the improved and efficient revenue collection of the
two agencies as determined by the Board of Trustees and the same shall be exempted
from the provisions of Republic Act No. 6750, otherwise known as the "Salary
Standardization Law," to take effect upon a reduction of non-revenue water to forty
percent (40%) and upon approval by the respective board of trustees of the MWSS and
the LWUA of their budgets.

SEC. 8. Anti-Pilferage. — It is hereby declared unlawful for any person to:

a. Destroy, damage or interfere with any canal, raceway, ditch, lock, pier, inlet, crib,
bulkhead, dam, gate, service, reservoir, aqueduct, water mains, water distribution
pipes, conduit, pipes, wire benchmark, monument, or other works, appliance,
machinery, buildings, or property of any water utility entity, whether public or
private;
b. Do any malicious act which shall injuriously affect the quantity or quality of the
water or sewage flow of any waterworks and/or sewerage system, or the supply,
conveyance, measurement, or regulation thereof, including the prevention of, or
interference with any authorized person engaged in the discharge of duties
connected therewith;
c. Prevent, obstruct, and interfere with the survey, works, and construction of access
road and water mains and distribution network and any related works of the utility
entity;
d. Tap, make, or cause to be made any connection with water lines without prior
authority or consent from the water utility concerned;
e. Tamper, install or use tampered water meters, sticks, magnets, reversing water
meters, shortening of vane wheels and other devices to steal water or interfere
with accurate registry or metering of water usage, or otherwise result in its
diversion in a manner whereby water is stolen or wasted;
f. Use or receive the direct benefit of water service with knowledge that diversion,
tampering, or illegal connection existed at the time of that use, or that the use or
receipt was otherwise without the authorization of the water utility;
g. Steal or pilfer water meters, main lines, pipes and related or ancillary facilities;
h. Steal water for profit or resale;
i. Knowingly possess stolen or tampered water meters; and
j. Knowingly or willfully allow the occurrence of any of the above.

SEC. 9. Prima Facie Evidence. — The presence of any of the following circumstances
shall constitute prima facie evidence of theft, pilferage, or of any unlawful acts
enumerated in Section 8 hereof:

a. The existence of illegal or unauthorized tapping to the water main or distribution

pipe;

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b. The existence of any illegal connection such as a reversed meter, shortened vane
wheel, bypass or other connections which adversely affect the registration of the
water meter;
c. The presence of a bored hole in the glass cover of the water meter, or at the back
of or any part of the meter including the vertical vane;
d. The presence of tampered, or fake seals on the meters. Inspection of tampered
water meters shall be done in the presence of the registered water consumer;
e. The presence of a reversed meter in the premises, insertion of rod, wire, or stick
in the meter, filed or shortened vane wheel, removal or altering of any part of the
meter mechanism, use of magnet and any similar illegal devices which interfere
with the meter registration;
f. Destruction of the meter protection and other metering accessories; or
g. Abnormal imprints, traces or marks found in the meter assembly.

The prima facie shall not apply to tenants who have occupied the house or dwelling for
ninety (90) days or less.

SEC. 10. Special Aggravating Circumstances. — The following shall be considered as

aggravating:

a. When the violation is committed in conspiracy with at least another person, both
of whom shall be considered as principals;
b. When the offense is committed by, or in connivance with, private plumber, officer
or employee of the water utility concerned, who shall all be considered as
principals; or
c. When the violation is coupled with the sale from a source which is illegal, or
unregistered, or unauthorized, or a source with a tampered meter.

SEC. 11. Penalties. — The water utility concerned shall have the right and authority to
disconnect the water services, five (5) days after service of written notice to that effect,
except on Sundays and holidays, without need of a court or administrative order, and
deny restoration of the same, when a prima facie evidence of theft or pilferage shall
have been established in accordance with Section 8 hereof: Provided, That a notice
shall have been issued even upon discovery for the first time of the presence of any of
the circumstances herein enumerated: Provided, further, That the water service shall not
be disconnected or shall be immediately restored upon deposit, by the person
concerned, of the difference in the billing made by the water utility concerned:
Provided, finally, That the deposit shall be credited against future billings, with legal
interest thereon where the alleged theft, pilferage or current diversion has not been
committed, without prejudice to being indemnified for damages in accordance with the
Civil Code and other existing laws.

A written notice of seventy-two (72) hours is necessary to effect water service

disconnection upon the discovery for the second time of any of the circumstances
enumerated in Section 8 hereof.

Any person who shall violate Section 8 hereof shall be punished by imprisonment of
six (6) months to two (2) years and a fine not exceeding double the amount of the value

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of the water stolen or the value of the damaged facilities: Provided, however, That if the
offender is assisted in the commission of the crime by a plumber, officer or employee
of the water utility concerned, the said employee, officer or plumber shall be punished
by imprisonment of two (2) years to six (6) years: Provided, further, That if the water is
stolen for profit or resale, the offender shall be punished imprisonment from six (6) to
twelve (12) years.

If the offender is a juridical person, the penalty shall be imposed on the chairman,
president, general manager, administrator, and the officers thereof who shall have
knowingly permitted, or are otherwise responsible for the commission of the offense.

SEC. 12. Issuance of Guidelines, Implementing Rules and Regulations. — Within one
(1) month from its organization, the Commission shall cause the issuance of guidelines,
implementing rules and regulations necessary to carry out the provisions of this Act.

SEC. 13. Commission's Report. — The Commission shall submit a quarterly report to
the President and to Congress on the implementation of this Act.

SEC. 14. Sunset Clause. — The Joint Executive-Legislative Water Crisis Commission
shall complete its report and submit its recommendation to the President and to
Congress within a period of six (6) months after its formal organization. After such
period, it shall cease functus officio.

SEC. 15. Separability Clause. — If, for any reason, any provision of this Act is
declared unconstitutional or invalid, other parts or provisions hereof which are not
affected thereby shall continue to be in full force and effect.

SEC. 16. Repealing Clause. — All laws, decrees, orders, rules, and regulations, or
portions thereof, inconsistent with this Act are hereby repealed or modified
accordingly.

SEC. 17. Effectivity Clause. — This Act shall take effect fifteen (15) days following its
publication in at least two (2) national newspapers of general circulation or in the
Official Gazette.

Approved,

(Sgd.) EDGARDO J. ANGARA (Sgd.) JOSE DE VENECIA JR.

President of the Senate Speaker of the House of Representatives

This Act which is a consolidation of H. B. No. 14471 and S. B. No. 2061 was finally
passed by the House of Representatives and the Senate on June 5, 1995 and June 2,
1995, respectively.

(Sgd.) EDGARDO E. TUMANGAN (Sgd.) CAMILO L. SABIO

Secretary of the Senate Secretary General House of Representatives

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Approved: June 7, 1995

(Sgd.) FIDEL V. RAMOS

President of the Philippines

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