Weapons industry opened to foreigners

President Arroyo has issued an executive order (EO) which would allow foreign investors to manufacture, repair, store and distribute guns and ammunition for the military.

The STAR obtained yesterday a copy of Executive Order 95, which Mrs. Arroyo signed last April 15 upon recommendation of Defense Secretary Angelo Reyes and with the endorsement of Director General Dante Canlas of the National Economic Development Authority (NEDA).

EO 95 amends "List B" of EO 286, entitled "Promulgating the Fourth Regular Foreign Investment Negative List," which ousted President Joseph Estrada issued on April 24, 2000.

After Mrs. Arroyo issued EO 95, the Bureau of Customs seized Tuesday some P90 million worth of Armalite bullets contained in a 20-foot container van at Manila’s North Harbor.

The shipment was reportedly consigned to the Philippine National Police (PNP) at Camp Crame in Quezon City but it was disowned by officials of the Firearms and Explosives Division (FED).

Customs officials were tipped off about the contraband, which documents show arrived at the Port of Manila in May last year.

National Security Adviser Roilo Golez told The STAR yesterday the National Intelligence Coordinating Agency (NICA) is investigating the seizure to determine if it could have been the handiwork of a syndicate that has been using the country as a transhipment point for gunrunning.

"It seemed that there is a gunrunning syndicate which imports guns here but re-exports them through illegal routes in our country," he said. "That’s a police matter but we at NICA are also looking into it."

Golez said authorities are investigating a private company which had been caught importing automatic rifles and other high-powered firearms with the use of spurious documents.

Investigators are specifically looking into the importation of MP-5 explosives between 1999 and 2000, he added.

Golez said the importer might be involved in destabilization efforts against the government because components of MP-5 explosives were used in fake bombs planted in different parts of Metro Manila last month.

In issuing EO 95, Mrs. Arroyo cited Section 8 of Republic Act 7042, which allows the amendment of List B of EO 286 on condition that it would not be done more than once every two years.

"However, the manufacture or repair of these items maybe authorized by the secretary of national defense to non-Philippine nationals; provided that a substantial percentage of output, as determined by the said agency, is exported," EO 95 reads. "Provided further the extent of foreign equity ownership allowed shall be specified in the said authority clearance." – Marichu Villanueva