‘Draft charter addresses lack of foreign investments’

THE draft federal constitution contains economic provisions that address lack of foreign investments especially in the regions, the Consultative Committee (ConCom) led by retired chief justice Reynato Puno said.

The 22-man ConCom on July 9 transmitted to the Senate and the House of Representatives the proposed draft charter.

The draft constitution allows Congress to “liberalize economic restrictions” in the following areas: lease of agricultural and reclaimed lands of the public domain; exploration, development and utilization of natural resources; operation of public utilities, subject to management control by Filipinos; educational institutions, subject to management control by Filipinos; and practice of professions, subject to reciprocity.

“Ownership of land, however, remains exclusive to Filipino citizens,” said ConCom spokesman Ding Generoso.

Under Section 13, Article 15 on national economy and patrimony provides that “no franchise, certificate, or any other form of authorization for the operation of a public utility shall be granted except to citizens of the Philippines or to corporations or associations organized under the laws of the Philippines, at least 60 percent of whose voting capital stocks are owned by such citizens; nor shall such franchise, certificate, or authorization be exclusive in character for a period longer than 25 years, renewable for another 25 years.”

The participation of foreign investors in the governing body of any public utility enterprise shall be limited and proportionate to their voting capital.

“Congress may, by law, change the voting capital requirement and period of the franchise under this section considering public welfare and national security, and for this purpose, such entities shall be managed by citizens of the Philip pines,” it added.

Under Section 11, Article 15 of the proposed charter levels the business field by prohibiting monopolies and cartels, guarantees free and fair competition and prevents market manipulation, establishes the independent Competition Commission with broad and strong powers, and empowers the poor through assured representation in Congress and regional assemblies.

The panel justified the need to shift to federalism, saying the unitary system has failed to address most of the nation’s problems due to overconcentration of powers in the national government.

It said the 1987 charter failed to address the lack of development in most regions especially in Mindanao.

The ConCom said the draft federal charter promotes “Bayanihan Federalism” where the federal government is strong to hold the nation together and where the regions are viable and sustainable.

It adopts a federal-presidential system with a more representative legislature, strengthens constitutional commissions, establishes 16 federated regions and the Bangsamoro and Cordillera regions and ensures a permanent or indissoluble nation.

BERNADETTE E. TAMAYO