Solons hit biases in car program

Lawmakers on Tuesday scored the Board of Investments (BOI) for the stunted growth of the country’s car development program, saying its inability to set clear cut rules to guide investors and its questionable decisions on issues affecting the industry are to blame.

At the hearing of the House Committee on Ways and Means, Deputy Speaker Sharon Garin (AAMBIS-OWA Partyilist) went as far as publicly airing suspicions that the BOI harbors biases against non-Japanese local assemblers and new players in the industry.

On the other hand, Reps. Lyndia Bolilia (NPC, Batangas), Rodel Batocabe (AKO Bicol Party-list) and Manuel Zubiri (NUP, Bukidnon) warned that unless government clears all gray areas in the implementation of rules and regulations of the Motor Vehicle Development Program (MVDP), the country will continue to lag behind its ASEAN neighbors in local automotive manufacturing.

Chaired by Quirino Rep. Dax Cua, the Committee on Ways and Means, launched Tuesday its investigation into the reported BOI move to cancel the authority granted Hyundai Asia Resources, Inc. (HARI) to participate in the MVDP, allegedly for failing to comply with requirements set under Executive Order (EO) 156.

BOI executives, led by Undersecretary Ceferino Rodolfo, said the agency’s board decided to cancel HARI’s license for allegedly lacking painting and welding activities in its assembly plant.

BOI insisted that violations of EO 156 has disqualified HARI from the tax privileges extended under the program.

At Tuesday’s hearing, Alex Cabrera, HARI senior technical adviser, said it is operating under the BOI authority provided for under EO 877A, an amendment to EO 156, which governs the manufacture of knocked down vehicles.

Saying that they have only started operation less than six months when BOI started pursuing their firm, Cabrera stressed that they have submitted all requirements like its technical license agreement (TLA) with Hyundai Motors Corp. of Korea.