June 7, 1995

REPUBLIC ACT NO. 8041

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

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

SECTION 3. Organization of Joint-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 certi ed workers' union in the affected water
institutions.
SECTION 4. Purpose and Objectives. — The Commission shall have the
following purposes and objectives:
(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;
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(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
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remedial and legislative measures as may be required to address the
problem.
SECTION 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
development 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. cdt

SECTION 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 nancing, 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 nancing or nancing 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, e cient and reliable
equipment, and sound financial capacity.
SECTION 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
o ces, 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 diminution of the present salaries and bene ts of the personnel of the
MWSS and the LWUA: Provided, That any o cial 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 be 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 e cient 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
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MWSS and the LWUA of their budgets. cda

SECTION 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; cd i

(i) Knowingly possess stolen or tampered water meters; and

(j) Knowingly or willfully allow the occurrence of any of the above.
SECTION 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;
(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,
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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;
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(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.
SECTION 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
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.
SECTION 11. Penalties. — The water utility concerned shall have the right and
authority to disconnect the water services, ve (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 rst 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, nally , 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 indemni ed for damages in accordance
with the Civil Code and other existing laws. cd i

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 ne not exceeding double the amount of the
value 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, o cer or
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employee of the water utility concerned, the said employee, o cer or plumber shall be
punished by imprisonment of two (2) years to six (6) years: Provided, further, That if the
water is stolen for pro t or resale, the offender shall be punished by 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 o cers thereof who shall have
knowingly permitted, or are otherwise responsible for the commission of the offense.
SECTION 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.
SECTION 13. Commission's Report . — The Commission shall submit a
quarterly report to the President and to Congress on the implementation of this Act.
SECTION 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.
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SECTION 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.
SECTION 16. Repealing Clause. — All laws, decrees, orders, rules, and
regulations, or portions thereof, inconsistent with this Act are hereby repealed or
modified accordingly.
SECTION 17. Effectivity Clause. — This Act shall take effect fteen (15) days
following its publication in at least two (2) national newspapers of general circulation
or in the Official Gazette.
Approved: June 7, 1995
Published in Malaya and the Philippine Times Journal on June 30, 1995. Published in the
Official Gazette, Vol. 91 No. 32 page 4991 on August 7, 1995.

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