Rodriguez disputes Zubiri’s latest suggestion on Charter change

Cagayan de Oro Rep. Rufus Rodriguez (File photo from his Facebook page)

MANILA, Philippines — A lawmaker has disputed Senate President Juan Miguel Zubiri’s assertions that passing laws and implementing them can address the House’ concerns on the 1987 Constitution’s economic provisions, noting that the law mentioned is already facing legal questions as of now.

In a statement on Monday, Cagayan de Oro 2nd District Rep. Rufus Rodriguez explained that Zubiri’s suggestion — to just implement Republic Act No. 11659, which amended the Commonwealth-era Public Service Act (PSA) — is already being challenged at the Supreme Court.

The R.A. No. 11659 signed by former President Rodrigo Duterte last March 2022 removed the 40-percent restriction on foreign ownership of businesses in key investment areas.  House leaders including Speaker Ferdinand Martin Romualdez seek Charter change to ease the economic restrictions of the 1987 Constitution.

“The Senate President is dead wrong on his stand that laws (statutes) can amend the Constitution. Of course not!  The previous laws amending the Public Service Act are now being questioned by at least 2 petitions in the Supreme Court for being unconstitutional,” Rodriguez, a lawyer by profession who heads the House committee on constitutional amendments, said.

“Just amending the Public Service Act to change the constitutional provisions prohibiting or limiting foreign investments cannot and will not pass constitutional muster,” he added.

According to Rodriguez, despite the passage of the Public Service Act, the country has not seen foreign airline companies and shipping firms, along with other transportation business operators based in other countries applying for a franchise in the Philippines.

The reason behind this, the solon said, is because the constitutionality of the Public Service Act is being questioned right now.

“Also we have not seen proof of foreign airlines, foreign shipping companies and foreign railway companies applying for franchise or authority to open their businesses in the Philippines,” Rodriguez noted.

“How can foreign companies apply to do business here under the amendments of the Public Service Act when the Constitutionality of these amendments have been questioned in the Supreme Court,” he added.

On Sunday, Zubiri told the House that any attempt to change the 1987 Constitution would be an exercise in futility since most Senators are against it.  For charter change to prosper, the Senate would need a two-thirds vote in favor of it, which means 18 Senators must agree with the proposals.

That number does not exist right now, Zubiri said.

Instead of mulling over Charter change, Zubiri said the government should just implement a law enacted last year to entice foreign investors instead of pushing for Charter change supposedly to amend the economic provisions of the Constitution for the same purpose.

“I believe we don’t need any amendment at this particular point in time,” Zubiri said in an interview with radio station DZBB.

Rodriguez also addressed other people’s fears about the sale of land to foreigners, noting that such would not happen under the House proposal.

Hence, Rodriguez said they are appalled by the Senate’s obstruction of the proposal, given how the country has lagged in terms of foreign investments.

“As to the sale of land to foreigners, it is not one of the amendments the House has submitted to the Senate,” he said.  “We are appalled by the obstructionist stance of the Senate for economic amendments to our Constitution.”

“We are now No. 8 in Foreign Direct Investments in 10 member ASEAN. Alarmingly, We have been overtaken by Vietnam and Cambodia. We are only ahead of Laos and Myanmar.  We need to open our economy to attract much needed foreign investments in our country. We need to provide more employment opportunities to our people and more business taxes to finance our socials program,” he added.

Charter change talks were floated by the Speaker and Senior Deputy Speaker Aurelio Gonzales, after both expressed hope that such proposals would be considered in 2024, to open up the economy.

READ: House renews push for economic charter change 

Romualdez’ call for Charter change came months after he himself said that amending the Constitution — particularly provisions that block foreign economic investments and ownerships — would be the last piece of the puzzle for economic growth.