MALACAÑANG yesterday said President Ferdinand “Bongbong” Marcos Jr. (BBM) had to veto a measure seeking to create the Bulacan Airport City Special Economic Zone and Freeport “to cure defects” found in the proposed law.
Press Secretary Trixie Cruz-Angeles said Marcos is not against the creation of the special economic zone (ecozone) and freeport but just wants to ensure it would not go against laws.
“Presidential veto is the fastest way to cure the defects of HB (House Bill) 7575 especially the provision which exempts the Commission on Audit to look into the financial transactions on the special economic zone and freeport. Had the President not vetoed HB 7575, it would have lapsed into law on July 4 or 30 days after the bill was sent by the legislature to Malacañang,” she said.
Angeles said the proposed measure lacks coherence with existing laws, rules and regulations as it failed to provide audit provisions for the COA.
She said all financial transactions in government are audited by COA and the proposed Bulacan Airport City Special Economic Zone and Freeport is no exception.
Angeles, echoing Marcos’ veto message, said the measure also did not provide procedures for expropriation of lands awarded to agrarian reform beneficiaries and instead granted “blanket powers” to the economic zone authority to handle technical airport operations, which would violate aeronautical laws.
She said another concern is that the proposed ecozone would be located near the Clark Special Economic Zone in Pampanga province that borders Bulacan which runs against government policy on creating special economic zones in strategic locations.
“Without those necessary amendments indicated in the veto explanation, the law may be vulnerable to constitutional challenge. The delegation of rule-making power on environmental laws which is unique to the special economic zone is of particular concern,” she added.
Angeles, meanwhile, said that while the law was vetoed, the construction of the P740-billion international airport in Bulacan will still push through as the San Miguel franchise to operate the airport has been approved by the Senate and House in October 2021.
“The construction of the Bulacan international airport and aero city is not affected by the veto. The presidential veto was meant to include the necessary corrections and include the missing processes that might render HB 7575 entirely unconstitutional,” she explained.
Executive Secretary Victor Rodriguez on Friday sent letters to the Senate President and the House Speaker relaying the President’s decision to veto HB 7575.
San Miguel Corporation, one of the country’s biggest conglomerates, is investing P740 billion to turn a 2,500-hectare property in Bulacan into an aerotropolis featuring a world-class gateway capable of handling 100 million passengers annually, plus an adjacent urban and industrial hub.
Incoming Senate President Juan Miguel Zubiri on Saturday night said the veto was “unfortunate” but it is a “presidential prerogative.”
Former Senate President Vicente Sotto III confirmed receiving a copy of the veto order late Friday or in his estimation “one or two days” before the enrolled bill will lapse into law if no presidential action is taken.
Zubiri said he also respects the position of the Department of Finance that no new economic zone shall be established but the CREATE or Corporate Recovery and Tax Incentives for Enterperises Law “does not ban the establishment of new economic zones as long as it conforms with the new fiscal and non-fiscal incentives under the CREATE law and as long as it conforms with the strict regulatory powers of the Fiscal Incentives Review Board (FIRB).”
He said the Bulacan special economic zone will complement the construction of one of the largest airports in the region and will bring in much-need investments for the people of Central Luzon.
“That is why we made sure that the bill conforms with the provisions of CREATE law on the new incentives regime. The veto is unfortunate but it is a presidential prerogative,” Zubiri added.
Sen. Joel Villanueva said the establishment of the special economic zone will provide jobs to the people and it was “unfortunate” that the measure was vetoed.
“We respect the President’s decision to veto this bill as it is his prerogative. As a true-blooded Bulakenyo, we find this decision unfortunate, as the proposal has the potential to create a lot of jobs for Filipinos. We fully supported the passage of the Bulacan freeport bill as it aims to provide jobs and livelihoods for our kababayans, as well as develop the country’s economy with investments and infrastructure,” Villanueva said in a statement on Sunday.
He said the senators of the 19th Congress are looking forward to working with the new administration and push for proposed measures and policies in harmony with the priorities of the Executive branch, including job generation for all Filipinos.
“We will carefully study on refiling this bill, and even consider other possible proposals such as strengthening the PEZA (Philippine Economic Zone Authority) Law,” he added. — With Raymond Africa
