Warning on 100% foreign ownership of public facilities

EDITORIAL

SEN. Ana Theresia "Risa" Hontiveros has warned that the proposed law which allows 100 percent foreign ownership of public utilities would pave the way for China to own crucial infrastructure in the Philippines. 

The senator was referring to Senate Bill (SB) 2094 which seeks to amend the 85-year-old Commonwealth Act 146 or the Public Service Act to make it in tune with the needs of the 110 million Filipinos for more and better providers of public services.

Senate Majority Leader Juan Miguel "Migz" Zubiri, Senate Minority Leader Franklin Drilon, and Senators Mary Grace Poe, Francis "Kiko" Pangilinan, and Maria Josefa Imelda "Imee" Marcos jointly filed SB 2094.

In the proposed amendments to the PSA, the sectors to be opened up to 100 percent foreign ownership include telecommunications and transportation.

Hontiveros warned that China "may use this as leverage against the Philippines when it comes to disputes in the West Philippine Sea."

"China has not stopped its illegal activity in the West Philippine Sea, and yet we're paving the way for her to buy our public infrastructure?" she said.

Hontiveros, who voted No to the approval of the franchise of Dito Telco's franchise which is partly-owned by China, said improving services in the country should not come at the expense of national security.

"We have vital national security interests that should never be compromised," the senator said in a statement.

"We should heighten restrictions on foreign ownership as China's encroachment in the WPS escalates; not make it easier for her to establish a stronghold in our own land," she added.

The senator stressed that there are still unresolved national security concerns on existing public utilities in which China has a 40 percent stake, such as the main power grid system, the National Grid Corporation of the Philippines and the third telco, Dito Telecommunity.

In 2019, Hontiveros filed Senate Resolution 223 to conduct an investigation and a national security audit of the operations and facilities of the NGCP.

She also filed SR 137 to investigate the Armed Forces of the Philippines' deal with Dito, which allows the telco to build facilities in military camps and stations.

Sen. Mary Grace Poe, who sponsored the bill, earlier said that amending the PSA will usher in more choices, improve and lower cost of basic services.

Poe said one of the amendments being pushed is the increase of the P200 penalty per day of violation of service providers to P2 million, plus "disgorgement of profits" and additional "treble damages."