Azcuna suggests flexible foreign inv rules during RBH 7 hearing

Retired Supreme Court Associate Justice Adolfo Azcuna Jr., one of the framers of the 1987 Constitution, suggested adding the phrase 'unless otherwise provided by law' to specific economic provisions during a hearing on Resolution of Both Houses (RBH) 7.

Azcuna testified before the House Committee of the Whole that this amendment would ensure flexibility and responsiveness to changes without altering fundamental principles, citing Spain's approach where foreign firms can own up to 49 percent while maintaining majority control by nationals.

He emphasized that national resource ownership should remain unchanged while foreign investment limits could be adjusted through legislation, suggesting a shift from the current 60-40 rule to a more flexible 51-49 arrangement.

Former SC Chief Justice Reynato Puno, in contrast, proposed outright repeal of restrictive economic provisions during a previous hearing and raised concerns about constitutionality if the phrase 'unless otherwise provided by law' is used.

RBH 7 aims to amend Articles XII, XIV, and XVI of the Constitution by allowing legislative changes to certain economic regulations, facing opposition due to ongoing signature-gathering efforts for people's initiative that seeks joint voting rights on constitutional amendments for all members of Congress.

Azcuna highlighted existing safeguards against adding political matters through RBH 7 and expressed optimism about the House's readiness to confront constitutional challenges in amending economic provisions.