THE Department of Justice (DOJ) is seriously looking into reports over alleged repression of foreign investors to Filipino subcontractors following the filing of multiple counts of swindling against corporate officials of a global telecommunications firm.
To start off, the DOJ particularly hinted at a 29-page complaint lodged before the National Prosecution Office against eight Manila-based Ericsson Telecommunications Inc. who are facing estafa for refusing to pay some P54 million covering 32 completed projects in Luzon alone.
The “swindled” Filipino subcontractor, whose name was withheld by the DOJ pending NPO’s resolution, completed various technical works involving system integration, structured cabling, civil works, and electrical services for a long list of projects in malls, hospitals, business centers and schools from 2020 to 2023. While civil lawsuits are not new in the country, the DOJ expressed willingness to resolve what appears to be a common practice that has been going on for some time by con artists in the guise of what is referred to as “foreign investors.”
The DOJ reminded “foreign investors” to comply with Republic Act 5455, which requires companies owned in whole or in part by foreigners, to contribute to the sound and balanced development of the national company on a self-sustaining basis.
While the law now allows 100% foreign ownership of telecom firms following the enactment of RA11659, the law does not legalize swindling. Hence, repressive foreign investors should be held accountable both in the civil and criminal aspects. Under this law, the President has the power to prohibit or suspend any foreign investments in public service upon the recommendation and review of a state agency as well as restrictions on foreign state-owned enterprises owning capital stock in a public utility or critical infrastructure.
Moreover, there is a reciprocal clause in the Act that prevents foreign nationals from owning a majority share in critical infrastructure unless their country accords the same to the Philippines. In the case of Sweden, Filipinos are now allowed to fully own foreign companies there.
Named respondents in the criminal case are foreign corporate bosses Martin Wiktorin, Jesmin Ehsan, Johan Kvist and Wee Tiong Ng. Estafa charges were also filed against Emerson Clemena, Jose Michael Hernal, Charis Heidi Ibarra and Roderick Reodica – all of whom are holding office at the Ericsson’s Bonifacio Global City office in Taguig City.
“The administration does not condone foreign business companies playing tricks on Filipinos in our very own backyard. It is also rather absurd to limit hefty contracts to these foreign companies who are just tapping Filipino sub-contractors to do the work for them.
