New Charter draft ready
The draft of the new “Philippine Federal Constitution” submitted to the House of Representatives this week paves the way for the lifting of restrictions on foreign ownership of lands, natural resources, schools, mass media companies and public utilities.
Although currently lacking endorsement from Malacañang, Resolution of Both Houses No. 8 is the first attempt in Congress under the Duterte administration to tinker with economic provisions of the 1987 Constitution after similar unsuccessful bids by previous administrations.
The 83-page draft submitted by Pampanga Rep. Aurelio Gonzales Jr. and ABS Rep. Eugene Michael de Vera inserted the phrase “unless provided by” a federal or regional law into existing provisions that require at least 60-percent Filipino ownership of lands and similar assets.
For example, joint ventures to explore, develop or use natural resources may be made by firms owned 60 percent by Filipinos “unless provided for by a federal law.”
The same clause has been added to provisions on the operation of public utilities and ownership and management of mass media. The clause is changed to “unless provided by a regional law” in provisions involving the lease of alienable lands.
President’s prerogative
One proposed section states that only the President may enter into agreements with foreign-owned corporations for large-scale exploration, development and use of minerals, petroleum and other mineral oils.
The amendments would not directly allow 100-percent foreign ownership of assets in industries that are nationalized or exclusive to Filipino citizens. But it would clear the way for it through future legislation.
The proposed changes appeared to follow the template of previous attempts to lift the constitutional limits on foreign ownership.
These included a proposal by Rep. Feliciano Belmonte, former Speaker, to amend the Constitution’s economic provisions.
Former President Benigno Aquino III had heeded protests against proposed amendments to the Constitution made by groups warning against an extension of officials’ term limits, including the President’s which was fixed at six years without reelection.
