MANILA, Philippines - Rep. Teodorico Haresco of the party-list group Ang Kasangga is urging Congress to revise laws on privatization and build-operate-transfer (BOT) projects to protect the public from the “greed for profit” of private companies acquiring state assets and franchises.
“For example, I think that there should be a cap on the amount of frequency of the increase in their service charges like expressway toll fees,” he said in a statement.
He said a cap on the amount and frequency of rate increases would protect the public from sudden and excessive adjustments and at the same time ensure that investors recoup their investments over time.
“In short, things like toll fees, electricity rates and fares for the light rail or mass transit system will be moderate and predictable,” he said.
Haresco made the appeal in the wake of mounting complaints from the public about the stiff increase in toll rates at the South Luzon Expressway and North Luzon Expressway (NLEX).
He said fees should in fact go down as investors recover their money over time.
Haresco, whose party-list group is composed of entrepreneurs, pointed out that the revision of pertinent laws would be timely since the Aquino administration is about to embark on more public-private partnership projects of PPPs.
“Public welfare should not be sacrificed in exchange for capital investments. Public interest should be fully protected,” he stressed.
He said the government, including Congress, should learn from the lessons of the privatization of expressway management and power assets.
In the case of power facilities, he said Congress should rethink the policy of allowing buyers to turn around and sell their newly acquired assets for a profit, which is eventually passed on to electricity users in terms of higher rates.
The practice of allowing buyers to pay for the assets in installment should also be reviewed, he added.