‘Policies, slow justice drive away foreign investors’

Aside from flip-flopping policies of practically every administration every six years, the ultra-slow grinding of the wheels of justice is also another factor why foreign investors have decided against taking risks in putting their money in the Philippines, according to a lawmaker, who cited the case of the Philippine International Air Terminals Co. Inc. (Piatco) that spanned four administrations over 16 years as an example.

Cagayan de Oro 2nd District Rep. Rufus Rodriguez, who chairs the House of Representatives’ committee on constitutional amendments, raised this case as among the reasons why foreign investors shy away from taking risks in the country’s highly politicized governance.

“The Piatco case showed that constitutional restrictions can result in adverse selection problems,” Rodriguez said, quoting Dr. Raul Fabella, national scientist on economics.

The concession agreement, which involved German company Fraport AG Frankfurt in building the Ninoy Aquino International Airport Terminal 3 on a build-operate-transfer scheme, was signed during the time of the late former president Fidel Ramos before he stepped down in mid-1998, and which was finally settled and awarded in December 2014, or during the time of the late former president Benigno Aquino III.

In between, two other presidents had to grapple with the chaotic lawsuit: Joseph Estrada, who only served for two and a half years as he was ousted in January 2001, and Gloria Macapagal-Arroyo, who took over in 2001 and relinquished her post in June 2010.

Another case that Rodriguez cited was the recent Supreme Court (SC) ruling that struck down the government’s Joint Marine Seismic Undertaking (JMSU) with the governments of Vietnam and China in exploring minerals in the West Philippine Sea after 15 years.

The SC petition was filed by former Bayan Muna representatives Satur Ocampo and Teddy Casiño in 2008, or during Arroyo’s presidency, who eventually became speaker in July 2018 and is now a senior deputy speaker representing Pampanga’s second district.

The high tribunal declared it as “unconstitutional” on the basis that the JMSU signed by the Philippine, Vietnamese and Chinese governments directly violated Article XII Section 2 of the 1987 Constitution, which protects the country’s public domain, including waters and minerals.

“The JMSU is unconstitutional for allowing wholly owned foreign corporations to participate in the exploration of the country’s natural resources without observing the safeguards provided in the 1987 Constitution,” the 12-2-1 SC ruling categorically stated.

Meanwhile, Camarines Sur 3rd District Rep. Gabriel Bordado of the opposition expressed apprehension over his House colleagues’ move to push for Charter change by holding a constitutional convention, where delegates will be elected simultaneously with this year’s barangay and Sangguniang Kabataan polls in October.

In a manifestation during last week’s plenary session, Bordado said the government should “exhaust all possible ways to improve the country’s economic performance rather than spending billions in changing the constitution.”

“According to NEDA (the National Economic and Development Authority), election in connection with the constitutional convention could cost the government as high as P28 billion – an amount that could be pulled down to P231 million if it would be conducted simultaneously with the barangay and Sangguniang Kabataan elections,” he said.

“Now, Mr. Speaker, Mr. Sponsor, would the government have enough budget to hold such electoral exercises without sacrificing the priorities we should be focusing on?” he added.