DOJ Opinion No. 096, s. 1992

DOJ OPINION NO. 096 , s. 1992 June 28, 1992 Ms. Ammal G. Raqeeb Raqeeb Management Enterprises Suite 209 L and S Bldg. 1414 Roxas Boulevard Ermita, Manila M a d a m : This refers to your request for authority to appoint Mr. Ali Z. Raqeeb, a national of the Kingdom of Saudi Arabia and a permanent resident of the Philippines, as the International Marketing Manager of Raqeeb Management Enterprises "as an exemption to the provisions of Commonwealth Act. No. 108, as the amended by PD 715 and in accordance with the Opinion of the Securities and Exchange Commission (SEC) dated April 12, 1991". prcd Commonwealth Act 108, as amended, insofar as pertinent, provides: " SEC. 2-A .Any person, corporation, or association which, having in its name or under its control, a right, franchise, privilege, property or business, the exercise or enjoyment of which is expressly reserved by the Constitution or the laws to citizens of the Philippines or of any other specific country, or to corporations or associations at least sixty per centum of the capital of which is owned by such citizens, permits or allows the use, exploitation or enjoyment thereof by a person, corporation or association not possessing the requisites prescribed by the Constitution or the laws of the Philippines; or leases, or in any other way, transfers or conveys said right, franchise, privilege, property or business to a person, corporation or association not otherwise qualified under the Constitution, or the provisions of existing laws; or in any manner permits or allows any person, not possessing the qualifications required by the Constitution, or existing laws to acquire, use, exploit or enjoy a right, franchise, privilege, property or business, the exercise and enjoyment of which are expressly reserved by the Constitution or existing laws to the citizens of the Philippines or of any other specific country, to intervene in the management, operation, administration or control thereof, whether as an officer, employee or laborer therein with or without remuneration except technical personnel whose employment may be specifically authorized by the Secretary of Justice , and any person who knowingly aids, assists, or abets in the planning, consummation or perpetration of any of the acts herein above enumerated shall be punished by imprisonment for not less than five nor more than fifteen years and by a fine or not less than five nor more than fifteen years and by a fine or not less than the value of the right, franchise or privilege enjoyed or acquired in violation of the provisions hereof but in no case less than five thousand pesos; Provided, however, that the President, managers or persons in charge of corporations, associations or partnerships violating the provisions of this section shall be criminal liable in lieu thereof. Provided, further, that any person, corporation or association shall, in addition to the penalty imposed herein, forfeit such right, franchise, privilege, and the property or business enjoyed or acquired in violation of the provisions of this act; and Provided finally, That the election of aliens as members of the board of directors or governing body of corporations or associations engaging in partially nationalized activities shall be allowed in proportion to their allowable participation or share in the capital of such activities ." (Emphasis supplied). prcd The Anti-Dummy Law expressly prohibits the employment of aliens in wholly or partly nationalized business, enterprises or activities, i.e., those which the Constitution or existing laws limit to citizens of the Philippines or to corporations or associations at least sixty (60%) percent of the capital of which is owned by Filipino citizens. Under P.D. No. 442 (The Labor Code of the Philippines), the recruitment and placement of workers, locally or overseas, is limited to Filipino citizens or corporations, partnerships or entities at least seventy-five (75%) percent of the authorized and voting stock of which is owned and controlled by Filipino citizens (Art. 27). Pursuant to the aforecited section of the Anti-Dummy Law, the exceptions to the ban on the employment of aliens in a recruitment/placement agency are: 1. Where the Secretary of Justice specifically authorizes the employment of the alien as technical personnel ; and 2. The election of aliens as members of the board of directors or governing body of the corporation or association engaged in partially nationalized activities in proportion to their allowable participation or share in the capital of such entities. Considering, therefore, that the employment of Mr. Raqeeb does not fall under any of the above-mentioned exceptions and considering further his executive functions in your recruitment firm, it is our view that he may not be legally employed as International Marketing Manager. prcd Very truly yours, (SGD.) FRANKLIN M. DRILON Secretary