Senator Risa Hontiveros on Tuesday, May 25, warned that amendments to the Public Service Act (PSA), which would allow 100 percent foreign ownership of public utilities, could pave the way for China to own critical infrastructure in the Philippines.
China, Hontiveros said, could use this as leverage against the country when it comes to disputes in the West Philippine Sea.
In the proposed amendments to the PSA, the sectors to be opened up to 100 percent foreign ownership include telecommunications and transportation.
Hontiveros is among the lawmakers who voted no to the approval of China-backed Dito Telecommunity’s application for a franchise renewal. Dito is 40 percent owned by Beijing-run China Telecom, and is a joint venture with Davao City businessman Dennis Uy’s Udenna Corporation and Chelsea Logistics and Infrastructure Holding’s Corp.
The senator has repeatedly stated that improving services in the country should not come at the expense of national security.
“We have vital national security interests that should never be compromised. We should heighten restrictions on foreign ownership as China’s encroachment in the WPS escalates; not make it easier for her to establish a stronghold in our own land,” she stressed.
Besides Dito, the senator also note that there are still unresolved national security concerns on existing public utilities in which China has a 40 percent stake, such as the country’s main power grid system, the National Grid Corporation of the Philippines (NGCP).
Hontiveros had earlier sought a Senate investigation and a national security audit of the operations and facilities of the NGCP, through Senate Resolution No. 223.
She also filed Senate Resolution No. 137 to investigate the Armed Forces of the Philippines’ (AFP) deal with Dito, allowing the third telecommunications company to build facilities in the AFP’s camps and stations.
The lawmaker pointed out national security issues surrounding Dito Telecommunity and the NGCP have yet to be resolved and yet the government is keen on opening its major industries to foreign ownership.
“If we open up our transport sector, for example, does this mean that the so-called Chinese maritime militia can apply for licenses or permits to operate in our domestic waters?” she pointed out.
“We are all for economic development, but never at the expense of our national dignity and sovereignty,” Hontiveros stressed.