Foreign investments and the national patrimony

IN an en banc decision this week, the Supreme Court (SC) voided the agreement for Joint Marine Seismc Undertaking (JMSU) entered into by the Philippines in 2005 with Vietnam and China through their respective state-owned oil firms. The highest court of the land declared the JMSU unconstitutional in violation of the provision that reserves the exploration, development, and utilization of natural resources to Filipino citizens or corporations majority-owned by Filipinos.

Voting almost unanimously, the SC ruled against the tripartite agreement because it allowed wholly-owned foreign corporations to explore the country's petroleum resources without observing the safeguards provided in Article 12 Section 2 of the 1987 Philippine Constitution titled "National Economy and Patrimony."