Hon. Gloria Macapagal-Arroyo

October 27, 1992 Hon. Gloria Macapagal-Arroyo Senate 3rd Floor, Velcro Centre Cor. 13th St., & Chicago St. Port Area, Manila Madam : This refers to the letter of Catherine Mae C. Santos of your Office dated October 20, 1992 requesting comments on SB No. 374 and SB No. 546, both entitled "An Act Providing For The Terms, Conditions And Licensing Requirements For Multinational Companies Operating Regional Or Area Headquarters Or Regional Warehouses But Not Doing Business In The Philippines, And For Other Purposes". prcd Please be advised that Commission Interposes no objection on the above mentioned Bills. However , the following recommendation are submitted: 1. Considering the above-mentioned Bills have similar or the same objectives, it is recommended that they be embodied in one Bill. Senate Bill No. 546 appears broader enough to include the provision of the other bill. 2. The tax incentives and importation priorities granted to international companies referred to in the bill should not favor foreigners to the prejudice of Filipino rightful preference of the country's economic opportunities. 3. It is suggested that in the public interest and/or for the effective implementation of the Act. the Securities and Exchange Commission be given the "visitorial power" over regional headquarters registered pursuant to the Act, to read as follows: "SECTION ____ VISITORIAL POWER. In the public interest and/or the effective implementation of this Act, the Securities and Exchange Commission may, through its duly authorized representatives, exercises the following functions: a. Conduct such investigation as it deems necessary to determine whether or not an international company which has registered its regional or area headquarters in the Philippines is complying with the provisions of this Acts, including but not limited to conducting necessary examination of the books and records of accounts of the regional or area headquarters, determining all the facts and circumstances concerning the matter to be investigated, including making pertinent inquiries from its personnel, and taking such other acts necessary for the proper exercise of its authority. b. Take such proper proceeding to revoke or cancel the license or registration of the regional or area headquarters of multinational company in case the same is found to have will fully violated any provision of its act. c. Requires such reports, financial or otherwise, as may be necessary in the public interest or for the compliance of the Act. d. Do any and all acts necessary for the discharge of any of the above functions, power, duties and responsibilities." Very truly yours, (SGD.) ROSARIO N. LOPEZ Chairman