Duterte Warns Philippine Builder: Safety First or Face Ban

(Bloomberg) -- Philippine President Rodrigo Duterte warned Isidro Consunji, chairman of DMCI Holdings Inc., to prioritize safety standards or face a ban after construction issues emerged in a development built by his family.

Duterte said Consunji’s family built the Ecoland 4000 condominium in Davao City, which sustained “major cracks” from an earthquake in October. Urban Property Developers, Inc., owned by the Consunjis, said in a statement Saturday that it’s in talks with residents for a settlement.

“I told him: prioritize your problems with the people,” Duterte said. “If you’re a builder, whether you’re Consunji or not, if I get annoyed with you, I will not grant you any permit to dig.”

Urban Developers said it’s “fully committed” to resolving the issue in a fair manner and as soon as possible. A settlement has been reached with over 20% of Ecoland 4000’s residents and talks are ongoing with the others, the company said.

Consunji and Duterte have been engaged in an ongoing squabble over contracts between Maynilad Water Services Inc., in which his family is a shareholder, and Manila. Consunji was reported by BusinessWorld on Dec. 16 as saying the utility will not be able to pay creditors if the president pushes ahead with changes in its agreement to service the city.

Ecoland 4000 was built by DMC Urban Property Developers Inc., which is owned by the Consunji family, according to local reports. Consunji’s family controls DMCI, one of the biggest Philippine construction companies.

The Philippine Daily Inquirer reported Saturday that Consunji also said the government’s push to change the water contract creates “uncertainty” that would put off investors.

Consunji should look at the quality of his property projects instead of speaking about the water supplier’s disputed contract with Manila, Duterte told farmers in the southern province of Cotabato Friday.

To contact the reporters on this story: Andreo Calonzo in Manila at acalonzo1@bloomberg.net;Ian Sayson in Manila at isayson@bloomberg.net

To contact the editors responsible for this story: Shamim Adam at sadam2@bloomberg.net, Stanley James, James Poole

©2020 Bloomberg L.P.