The Security and Exchange Commission (SEC) has committed an error with a memorandum circular redefining 60-40 rule on foreign companies’ ownership, giving Philippine Long Distance Telephone Co. (PLDT) the chance to be majority-owned by foreign companies.
During the weekly forum at Hotel Rembrandt’s Balitaan, former Supreme Court Chief Justice Renato Corona’s lawyer, Jose Roy, Dean of Pamatasan ng Maynila, said that SEC Memorandum Circular 8 issued on May 8 clearly violated the country’s Constitution.
“PLDT is already owned by First Pacific, a Hong Kong and Indonesian company, and the NTT Dokomo, a Japanese Telecom group. Redefining the cap on foreign ownership, particularly of public utilities will only give PLDT to be bought by foreign firms,” he explained.
He added that he has filed a petition for certiorari before the Supreme Court to order the SEC to conduct a reinvestigation on PLDT, which he said is now majority-owned by foreign firms in violation of the Philippine Constitution.
“First Pacific is a fund manager which only takes the ownership of the company it bought and take its profit without any real commitment to create jobs, etc. for the economy,” he said.
“Why suffer such indignity here with an already lousy telecom service now being passed and handled by foreigners,” Roy added.
The SEC memorandum circular, he added, had erred in coming out with a ruling allowing foreign companies to own majority of PLDT’s shares.
“It is loosely crafted giving only the giant telecom to be owned by foreign firms,” Roy said, adding that he is only waiting for the reply of PLDT to the High Tribunal’s answer on his petition solely made by him as the complainant to the case.