An official said Thursday he was concerned over a Supreme Court decision that would allow foreign construction firms to have a local licensee and be able to engage in any private or government project in the country.
While stressing his respect for the high tribunal, Rep. Romeo Momo, vice chairman of the House committee on public works and highways, said he was alarmed over the ruling on the petition for review filed by the Philippine Contractors Accreditation Board or PCAB, which is seeking a reversal of the Feb. 24, 2014 resolution and the Feb. 10, 2015 order of the Quezon City Regional Trial Court Branch 83.
The February 2014 ruling and the RTC order were both favorable to the petition filed by Manila Water Company Inc. and declared void Section 3.1 Rule 3 of the Revised Rules and Regulations Governing Licensing and Accreditation of Contractors in the Philippines or the Implementing Rules and Regulations of Republic Act 4566 or the Philippine Licensing Board for Contractors Law.
Momo says before the high court decision, only foreign construction companies with a 60-percent Filipino equity or with a local joint-venture partner could seek a contract for a private or government project.
Now that foreign construction firms could apply for a local license with the PCAB, he said, local construction companies would stand to lose project contracts and job opportunities for Filipino construction workers.
“Big foreign contractors that will be given a license like our local contractors can now participate in privately-funded biddings, and unlike before when only those companies with at least 60 percent Filipino equity are allowed,” Momo said.
“And in case of a foreign company which is a holder of QUADRUPLE A license, if the project cost is at least P3 billion or P5 billion, if they got a project here, surely they would bring in workers from their country and our Filipino construction workers will be the least of their priority.
“While we respect the decision of the [high court], we are expressing our deep concern on its effect to the Filipino construction industry—the Filipino contractors and the Filipino construction workers.”
But Momo says all is not lost as he bowed to spearhead a move to amend some provisions of RA 4566, particularly in an effort to protect the welfare of Filipino construction companies and workers.
“The Supreme Court said that there is no particular provision in RA 4566 stating that only Filipino-owned construction companies should be given a PCAB license. It was only in its implementing rules and regulations or the IRR, that is why they said it is illegal,” Momo said.
“By that, what we need now is to amend the said law, especially to have provisions that would be for the greater good of our local construction industry and Filipino construction workers.”
Momo says he is confident he will be able to muster the support from his colleagues in Congress, as well as from the members of the Senate, in pushing for the amendments to R.A. 4566.
He says the high court decision comes at a time when the growth of the construction industry in 2020 is expected to slow down to 1.2 percent from the 8 percent measured before the COVID-19 outbreak.
