Recto seeks ban on foreign firms involved in acts that infringe on PH sovereignty


Senator Ralph Recto seeks to prohibit foreign companies from doing business in the Philippines if they have participated in activities that infringe on the country's sovereignty.

Senate Ralph Recto
(Senate of the Philippines / FILE PHOTO / MANILA BULLETIN)

The Senate President Pro Tempore recently filed Resolution No. 507 which calls on his colleagues to join the appeal against firms that were complicit in the reclamation activities and militarization in the West Philippine Sea and other areas with the country's territorial jurisdiction and bar them from being awarded government contracts or doing business here.

"The Philippine government must be determined not only in deterring foreign military aggression, but also in upholding the rule of law and protecting the national interests of the country against non-traditional threats to national security," Recto said in the resolution.

"There is a need to ensure that foreign entities conducting business in the country shall respect and obey the Philippine laws, including, and most importantly, laws governing national territory and patrimony," he added.

In his resolution filed last September 1 and released to the media Tuesday, Recto particularly cited the United States' sanctions against Chinese companies and individuals that were involved in China's island-building activities in parts of the South China Sea that are also being claimed by other Southeast Asian countries, including the Philippines.

He said the Philippines has yet to impose any sanction against any Chinese enterprise or entity "despite being directly affected by their aggressive reclamation activities, establishment of Chinese districts on disputed maritime features, and continuous military buildup in areas within or in proximity to the West Philippine Sea and the Philippine Exclusive Economic Zone."

"While many local contractors were blacklisted for violation or circumvention of procurement laws, Chinese enterprises, notwithstanding a history of fraudulent public procurement practices or direct involvement in the reclamation activities in the disputed territories, are securing contracts for major infrastructure projects in the Philippines," he added.

Local businesses have continued to venture with the foreign firms that were flagged in other countries for their affiliation with their governments "for pragmatic or political reasons," he said.

Aside from national security threats, Recto also raised the effect of China's activities on the Philippine's natural resources and food supply.

Foreign Affairs Secretary Teodoro Locsin Jr. had earlier said he would "strongly recommend" to President Duterte to terminate local business and infrastructure deals with Chinese companies that helped China's incursions in the West Philippines Sea.

Last week, however, Locsin backpedaled on his suggestion and said he agrees with President Duterte's decision to pursue the projects.

Among those sanctioned by the US was the China Communication Construction Co. Ltd. (CCCC), which partnered with the Philippine-based MacroAsia Corporation for the construction of Sangley Point International Airport in Cavite.