Reso filed seeking to blacklist foreign firms engaged in WPS ‘infringement’

MANILA, Philippines — Senate President Pro Tempore Ralph Recto wants foreign entities involved in activities that “infringe” on Philippine sovereignty over the West Philippine Sea and other areas within its territory barred from securing government contracts and conducting business in the country.

Recto recently filed Senate Resolution No. 507, expressing the sense of the Senate “to prohibit from receiving awards for government contracts or conducting business in the Philippines foreign entities who have engaged in or abetted activities that infringe on the sovereignty of the country over the West Philippine Sea and other areas within its territorial jurisdiction.”

Recto said the Philippine government should be determined not only in dissuading foreign military aggression but also in “upholding the rule of law and protecting the national interests of the country against non-traditional threats to national security.”

The senator filed the resolution in the wake of the decision of the United States to blacklist Chinese firms and individuals involved in China’s militarization of the South China Sea.

Foreign Affairs Secretary Teodoro Locsin Jr. initially said he would “strongly” recommend the termination of contracts with Chinese firms involved in the construction of artificial islands in the disputed waterway.

But the Palace said President Rodrigo Duterte decided to push through with China-backed projects in the Philippines despite the move of the United States.

“The Philippine Government has yet to impose any sanction against any Chinese enterprise or entity despite being directly affected by their aggressive reclamation activities, establishment of Chinese districts on disputed maritime features, and continuous military buildup in areas within or in proximity to the West Philippine Sea and the Philippine Exclusive Economic Zone,” Recto said in his resolution.

He said that while local contractors were blacklisted for violation or circumvention of procurement laws, some Chinese enterprises are still securing contracts for major infrastructure projects in the Philippines despite a “history of fraudulent public procurement practices or direct involvement in the reclamation activities in the disputed territories.”

The senator then underscored the need for the government to develop effective mechanisms in a bid to prevent and deter corruption and other criminal acts.

He also called on the government to ensure prudence in the use of public funds and foreign development assistance, to protect and secure local businesses and enterprises as well as preserve the integrity of government institutions and public service.

“Bearing in mind efforts to liberalize the Philippine economy, particularly in the sectors of public services, retail trade and foreign investments, there is a need to ensure that foreign entities conducting business in the country shall respect and obey the Philippine laws, including, and most importantly, laws governing national territory and patrimony,” Recto said.

EDV