Con-Com Commissioner and Camiguin Gov. Pedro Romualdo said committee members unanimously agreed during a bicameral meeting to junk the mandatory switch to federalism earlier proposed by Chairman Jose Abueva Jr. Instead, the Con-Com committee favored for the gradual, Constituent-initiated transition to federalism.

"We agreed that if two-thirds of all local government units (LGUs) nationwide decide to transform into autonomous territories, our new name for the country’s regions, then people concerned can file with Parliament a petition covering such matter," Romualdo said.

He explained that parliament has one year to study and act on the petition. "If parliament fails to decide on the matter within this specified period, then such is deemed approved," he said.

Romualdo clarified, however, that LGUs can only file such petition when the country is already implementing the parliamentary form of government. He also said committee members unanimously agreed constituents of autonomous territories can afterwards file for statehood whenever they feel ready for such transition. "They may convene and submit to Parliament a petition covering shift to becoming a federal state," he said. He explained a gradual process towards federalism is better since this move has the backing of constituents involved.

Authorities deemed such backing essential in minimizing anti-federalism sentiments which can otherwise lead to chaos.

"We have to protect our country’s integrity," Romualdo said. He earlier described the proposed quick shift to federal structure as "a beautiful mechanism for fragmenting the country" because this does not give LGUs adequate time to prepare for statehood.

He raised concern about the proposal, particularly since most LGUs lack resources and capability to function as independent geo-political entities.

Romualdo does not foresee major setbacks in a gradual shift, however, since he explained each autonomous territory will have all the time to prepare for a switch to federalism.

To minimize conflicts in legislation, he also said each territory will adapt as its charter the proposed Organic Act. He said this legislation is intended to harmonize with the new Charter the Philippines will eventually adapt. Romualdo also said the commission will finalize details covering this matter next week. The body is working on its final report on nationwide consultations it conducted for about three months to source public inputs on a proposed change to the 1987 Philippine Constitution. The report is due for submission to Malacanang on Dec. 15.

Con-Com OKs lifting of curbs on foreign ownership of firms

The Consultative Commission (Con-Com) approved during plenary session the lifting of a provision restricting the exploration, development and utilization of natural resources of the country by foreigners.

This allows foreigners the full ownership of such corporations provided it will be under a joint venture with the State.

The present Constitution bars foreigners from owning corporations and limit the capital they could infuse in certain businesses.

The 55-man commission has also approved that the matter of limiting foreign ownership restriction on certain industries and businesses such as public utilities, educational institutions, and investments should be left to the discretion of the Parliament for legislation.

The proposed revision of Article XII Sec. 10 states that "the Parliament shall, upon recommendation of the economic and planning agency, when the national or public interest dictates, provide for limitations on foreign ownership in certain areas of investments."

Commissioner Vicente Paterno, chair of the Con-com Committee on National Patrimony and Economic Reforms, said they have encountered public apprehensions as far as full foreign ownership on certain entities from the three-week nationwide consultations they have carried out. "The reason is, there is a clear mandate from the people, there were some objections on full ownership on certain industries that’s why we have to leave the discretion to the Congress (Parliament)," Paterno said.

The Commission also approved that alienable lands of public domain, which would be limited to agricultural lands, may be held by private corporations and associations, including foreigners through lease, the terms of which would be determined by the Parliament.

As to ownership of private non-agricultural lands, the Commission decided that the Parliament would have to define the conditions for ownership. (Rico C. Navarro)

Malacañang pledges to endorse Con-Com proposals to Congress

By FERDIE J. MAGLALANG

Malacañang yesterday vouched to endorse for appropriate action by Congress the proposed amendments or revisions to the 1987 Constitution that would eventually be recommended by the Consultative Commission (Con-Com) on Dec. 15.

Executive Secretary Eduardo Ermita issued the statement as the Con-Com wraps up its work.

"I don’t see any reason why the President will not endorse the work of Con-Com to Congress," he said, noting that the President was the one who created the Con-Com and tasked it to assist her in studying which particular provisions in the Charter ought to be rectified.

The Arroyo administration has been pushing for fundamental economic and political reforms in the country, notably in shifting the present form of the government from presidential, bicameral to federal-parliamentary.

"The President will have to go along with Con-Com. She will see whether the proposed amendments to the provisions in the Constitution she thought were to be done are included in the draft of Con-Com," Ermita said.

He, however, said the President will have to see Con-Com’s full report to her before she finally forwards it to Congress which is constitutionally tasked to initiate amendments or revisions to the 18-year-old Charter.

"It is a mixture of options, but I cannot tell you exactly because as I have said nothing is final yet coming from the Con-Com, and even the ones coming from the Con-Com would only be recommendatory to congressmen," he said.

"The committee on constitutional reform (by the two houses of Congress) would have to come up with a final draft on the amendments to the Constitution, which will be submitted in plenary (session). The Con-Com provided the inputs," he added.

Ermita also said the President is likewise interested to know the full details of Con-Com’s recommendations, notably on the election of members of the parliament, the scheduled regular elections on 2007, and the term of office of the incumbent officials.

"We’d know if there’d be election in 2007, what is the provision on transitory government, what’d happened to the present crop of officials, those who are not facing elections for example since they have to carry on their mandate up to 2010," he said.