ECCP assails unfair practices of PCAB

The European Chamber of Commerce of the Philippines ( ECCP) has asked the Philippine Competition Commission ( PCC) to investigate the alleged unfair practices of the Philippine Contractors Accreditation Board ( PCAB) on foreignowned contractors.

The case is filed amid an assessment on a P70-billion telecommunications deal that involves three of the country’s largest firms.

“ECCP has filed another anti- competition case with

the PCC and we are watching the decision on that case with great interest and high expectation also,” the chamber’s vice president for external affairs Henry Schumacher told The STAR.

“It involves the accreditation imposed by the PCAB which limits foreign contractors to 40 percent while there is nothing in Philippine Law that prevents 100 percent owned foreign contractors to execute infrastructure projects in the country,” Schumacher added.

The ECCP is displeased with the restrictions imposed by PCAB on foreign-owned contractors as this discourages foreign contractors from taking risks.

“If the Philippines wants to continue growing the economy, the lack of infrastructure needs to be addressed. This can only be done with the involvement of international contractors that will bring latest technologies to the country. But you cannot expect these companies to bring the technology, bring the money, carry the risks and then control only 40 percent of the venture,” Schumacher said in an earlier interview.

Aside from the PCAB case, Schumacher said ECCP is also keeping a close eye as to how the country’s newly-formed anti- trust body would conduct its investigation on the joint acquisition of Philippine Long Distance Telephone Co. (PLDT) and Globe Telecom of San Miguel Corp.’s telecommunications assets.

“The treatment of the $1.5- billion telco deal by the PCC will show whether the meaning of the law and of the rules, created to protect the interest of Juan dela Cruz, will be applied,” he said.

The PCC last Friday published the implementing rules and regulations (IRR) of the Philippine Competition Act which was welcomed by the foreign business chambers in the country.

“The IRR follows the spirit and the intention of the Philippine Competition Law which we welcomed after decades of advocacy. The importance is now the implementation of the law and the IRR by the PCC,” Schumacher said.

“We are impressed by the hard work of the Philippine Congress to produce a very good law, by the quality of the commissioners appointed by President Aquino, and the draft IRRs which the PCC prepared quite quickly after researching beat international questions,” added American Chamber of Commerce of the Philippines senior advisor John Forbes.