Allow foreign investors in media — solon
A House leader is proposing several amendments to the economic provisions of the Constitution, including one that would allow foreign investments in mass media.
The proposals of Deputy Speaker Pampanga Representative Aurelio Gonzales Jr. are contained in a memorandum to the House Committee on Constitutional Amendments chaired by Cagayan de Oro City Rep. Rufus Rodriguez.
The lawmaker wants Section 11 of Article XVI on Mass Media to be rewritten to state: “The ownership of mass media shall be limited to citizens of the Philippines, or to corporations, cooperatives, associations, and entities organized under the laws of the Philippines at least sixty per centum of whose capital is owned by such citizens, provided that its management shall be exclusive only to citizens of the Philippines.”
The proposed amendment “means that mass media will remain to be majority-owned and controlled and run exclusively by Filipinos, with foreign ownership to be limited to 40 percent.”
Currently, Section 11 provides: “The ownership and management of mass media shall be limited to citizens of the Philippines, or to corporations, cooperatives or associations, wholly-owned and managed by such citizens.”
In proposing to allow foreigners to invest in mass media, Gonzales said the sale of Philippine Depositary Receipts (PDRs) to foreigners by certain mass media companies was brought up in past House hearings.
“PDRs are investment instruments which earn interest and can be sold for profit. Through PDRs, foreign nationals may directly own shares in mass media corporations, which is not in accordance with the present Constitution,” he said.
“This proposed amendment will improve and aid mass media networks, as foreign nationals would be openly welcome to invest directly in mass media corporations instead of going around the law through the use of PDRs,” the solon added.
Another Charter change proposed by Gonzales would allow foreigners and foreign corporations, associations and entities to own land not exceeding five hectares, provided they use it for manufacturing or trading activities.
A third proposal would leave to Congress the discretion on relaxing the present 40-percent foreign participation limit on the exploitation of the country’s natural resources by inserting the phrase, “or as may be provided by law” in Section 2 of Article XII.
Gonzales is also suggesting that Congress be allowed to create autonomous regions in other parts of the country by amending Section 15 of Article X on Local Government, which provides that such regions be established in Muslim Mindanao and the Cordilleras.
