VERA FILES FACT CHECK: Cagayan lawmaker claim that business groups flip flopped on support for Cha-cha needs context

Cagayan de Oro City Rep. Rufus Rodriguez claimed that the Makati Business Club (MBC) and the Financial Executives Institute of the Philippines (FINEX) have walked back on their support for amending the 1987 Constitution. This needs context.

Rodriguez was reacting to a March 24 joint statement issued by six big business organizations, including the MBC and FINEX, opposing the moves at the House of Representatives for a constitutional convention (Con-con) to introduce amendments to the economic provisions of the Charter.

STATEMENT

In a statement on March 26, Rodriguez said:

“MBC and Finex are now against Charter amendments. Before this position, they were in favor of changing the Constitution’s economic provisions.”

Source: Rep. Rufus Rodriguez Statement, Manila Bulletin, Malaya, The Philippine Star, March 26, 2023

FACT

The MBC and FINEX did not explicitly say they are against amending the economic provisions of the Constitution. However, they opposed the mode preferred by the House to introduce amendments, emphasizing the high cost of constituting a Con-con and the timing to do it.

The cost of setting up a Con-con, which the National Economic and Development Authority had estimated at P14 to P28 billion, “can be better used on agriculture to address the high inflation, transportation to enable Filipinos to get to work and home in much less time, and needed social services like health, education, and social security,” they said in the joint statement with Filipina CEO Circle, Justice Reform Initiative, Philippine Women’s Economic Network, Inc. and Women Business Council Philippines.

The business groups described having a Con-con to amend the Constitution as a “potentially disruptive proposal at a time when the country may be poised to regain its economic momentum.”

They said:

“Investors look for stability when making investment decisions. The possibly lengthy and fractious process of amending the Constitution may make investors take a wait and see attitude for an extended period of time and therefore derail the impact of the reforms.”

Source: Makati Business Club, Joint Statement on Proposed Constitutional Convention, March 24, 2023

The business groups acknowledged that recently enacted laws – such as the Public Service Act, Retail Trade Liberalization Act, the Foreign Investment Act – have addressed provisions in the Constitution that impede trade, investment, innovation, competition, and economic and job growth.

BACKSTORY

The House of Representatives approved on March 6 Resolution of Both Houses No. 6 with a vote of 301 in favor, 6 against and one abstention. It calls for the convening of a Constitutional convention (Con-con) to introduce amendments to the economic provisions of the charter. Eight days later, the House approved House Bill No. 7352, an enabling measure for RBH No. 6 that provides the procedure for the establishment of a Con-con.The Senate has yet to approve RBH No. 6 and its implementing bill.

Four senators – Aquilino “Koko” Pimentel III, Loren Legarda, Nancy Binay and Risa Hontiveros – have expressed their opposition to Charter change at this time, stating that it might derail the focus of Congress in addressing problems in the agriculture, health and labor sectors.

At least three times last month, Senate President Juan Miguel “Migz” Zubiri stated that Charter change is not a priority, echoing the position of President Ferdinand Marcos Jr.

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Sources

Makati Business Club, About Us, Accessed April 3, 2023

Financial Executives Institute of the Philippines, History, Accessed April 3, 2023

Rep. Rufus Rodriguez Statement

Manila Bulletin, ‘They were in favor before’: Rodriguez calls out business groups for Cha-cha flip-flop, March 26, 2023
Malaya Business Insight, Biz groups hit for flip-flop on Charter change issue, March 27, 2023
The Philippine Star, Lawmaker accuses biz groups of ‘flip-flopping’ on Cha-cha, March 28, 2023

CNN Philippines, House leader: Charter change to cost ₱9.5 billion, Feb. 22, 2023

Inquirer.net, Charter change via con-con a ‘disservice’ to Filipinos, says Enrile, March 22, 2023

Makati Business Club, Joint Statement on Proposed Constitutional Convention, March 24, 2023

Official Gazette of the Philippines, Public Service Act, March 21, 2022

Official Gazette of the Philippines, Retail Trade Liberalization Act, Dec. 10, 2021

Official Gazette of the Philippines, Foreign Investment Act, March 2, 2022

Malaya Business Insight, Con-ass cheaper than con-con as Charter change mode – NEDA, March 3, 2023

House on RBH No. 6

CNN Philippines, House OKs resolution calling for con-con on final reading, March 6, 2023
ANC 24/7 Youtube Channel, Voting 301-6-1, PH House OKs resolution calling for economic reforms through con-con | ANC, March 6, 2023
Inquirer.net, House OKs reso calling for Con-con to amend 1987 Constitution on third reading, March 6, 2023

House on H.B. 7352

Philippine News Agency, House OKs bill calling for hybrid con-con to amend Charter, March 14, 2023
Philstar.com, House approves constitutional convention bill on final reading, March 14, 2023
GMA News Online, House approves con-con bill on final reading, March 14, 2023

Senators’ stance on Cha-Cha

Inquirer.net, How senators are dancing, or not, to the first Cha-cha under Marcos, March 28, 2023
Senate of the Philippines, Pimentel questions timing of Cha-cha, raises inclusion of foreign ownership of land in Cha-cha, March 27, 2023
ANC 24/7, Legarda says ‘not in favor’ of Cha-cha at this time | ANC, March 1, 2023
Senate of the Philippines, Reaction of Sen. Nancy Binay on the following issues of the day, Feb. 9, 2023
Senate of the Philippines, STATEMENT OF SENATOR RISA HONTIVEROS ON PROPOSED CHARTER CHANGE, Feb. 15, 2023

Zubiri on Cha-Cha

ABS-CBN News, House set to approve ‘con-con’ bill; Zubiri says not a Senate priority, March 9, 2023
Manila Bulletin, Zubiri: Con-Con will derail passage of 10 LEDAC bills, March 11, 2023
Inquirer.net, Zubiri clarifies: Charter change stand remains, open to discuss bid with House, March 20, 2023

President Bongbong Marcos on Cha-Cha

ABS-CBN News, Marcos Jr. says amending the Constitution is not his priority, Feb. 13, 2023
CNN Philippines, Marcos: Charter change not a priority, Feb. 13, 2023

Manila Bulletin, Marcos: Charter change not a priority, Feb. 13, 2023

(Guided by the code of principles of the International Fact-Checking Network at Poynter, VERA Files tracks the false claims, flip-flops, misleading statements of public officials and figures, and debunks them with factual evidence. Find out more about this initiative and our methodology.)