Solon fears HB 5828 a shortcut for foreigners to own public utility enterprises

Rep Edcel Lagman. INQUIRER FILE PHOTO/EDWIN BACASMAS

A member of the independent minority bloc in the House of Representatives on Tuesday expressed fear that a bill providing a statutory definition for public utility may allow foreigners to have public ownership without the need for charter change.

In a press briefing, Albay Rep. Edcel Lagman said House Bill 5828 which defined public utility is “actually a subterfuge to allow foreigners to own public utility enterprises without complying with the citizenship requirement imposed by the Constitution” of amending the charter provisions on foreign ownership.

Lagman quoted House economic affairs committee chair Bohol Rep. Arthur Yap as saying the said bill would allow foreigners to own public utilities.

This is despite the Constitutional provision that requires public utilities to be owned by Filipino citizens or by corporations, partnerships or associations where not less than 60 percent of the capital stock is owned by Filipino citizens.

“Without waiting for an amendment to the economic provisions of the Constitution either by a Constituent Assembly or Constitutional Convention, the House leadership has prioritized the enactment of House Bill No. 5828 which ostensibly provides for a statutory definition of a public utility but which is actually a subterfuge to allow foreigners to own public utility enterprises without complying with the citizenship requirement imposed by the Constitution,” Lagman said.

Lagman added that the said bill deleted from the Public Service Act a provision which reflects the Filipino ownership requirement of public utilities in the 1987 Constitution.

“In its definition of a public utility, House Bill No. 5828 has deliberately deleted the concept of ownership and limited the definition to the operation, management and control of public utilities even as there can be no operation, management or control without an owner,” Lagman said.

“The bill also deletes from the enumeration of public utilities traditional public utilities like common carriers and telecommunications companies which are presently operating with controlling Filipino ownership,” he added.

According to the bill, public utility is defined as covering three sectors—the distribution of electricity, transmission of electricity, and the water pipeline distribution system or sewerage pipeline system.

Its main objective is to clarify the definition of public utility to open up the industry to competition, according to the committee report. JPV