Lorenzana says Congress should pass a law banning Chinese investors if they don’t want Dito Telecommunity

October 12, 2020

Defense Secretary Delfin Lorenzana said Congress should pass a law that will ban Chinese investors in the Philippines if they do not want Dito Telecommunity in the country.

"First of all, the investment there of China Telecom is authorized by the Constitution. Now if we do not want them... If we really do not want them, we should follow the lead of some of the countries all over the world that ban Chinese technology from coming in," he said in a Senate hearing on the defense department's budget Monday.

"Maybe we should pass a law banning them from entering...  I think it is after the fact that we question them, but when they are investing we are not saying anything," he added.

On Sept. 8, Lorenzana told the House of Representatives that he signed an agreement with Dito Telecommunity to set up cell towers with military camps, just like Smart and Globe.

Lorenzana explained that the franchise granted by Congress to Dito does not prevent the entry of Chinese companies or investors in the country.

"The franchise that the Congress government to Dito... does not prevent the entry of Chinese. That is why they were able to enter. Maybe I go back to my previous statement maybe Congress should pass a law that will ban these people, these companies from investing in the country," he said.

Lorenzana said Dito Telecommunity is being singled out because it has a Chinese investor.

"First of all, it's not China that will put up tower inside (military) camp. Dito is a Philippine company. A Chinese company is just an investor to that 40 percent (limit on foreign investor)," he said.

"We made a study the Smart and Globe are also using Huawei, which is Chinese technology. Their posts and system are all Huawei. So what is the difference between them and Dito? If they use the same Chinese equipment. We single Dito, but not the other two just because there is an investor there that is Chinese," he added.

"I think it's immaterial if the investor there is Chinese or not because these if they also use Chinese systems maybe they also has capabilities to listen... to place gadgets to hear conversations," he said.

"It is being studied by our security people in the AFP. They even consulted experts. It is very difficult actually for this company to eavesdrop in the security operations of the AFP all over the country. And we will submit the memorandum of agreement (with Dito) to the Senate," he added. Robina Asido/DMS