Lorenzana calls as 'immaterial' China's 40% ownership of DITO

China Telecom's 40% ownership of the DITO Telecommunity Corp. is immaterial in the agreement to put up facilities inside military camps, Defense Secretary Delfin Lorenzana said on Monday.

During a Senate hearing on the proposed budget of the Department of National Defense for fiscal year 2021, Lorenzana pointed out that DITO is a Filipino firm, noting that it is not China that will establish facilities inside security camps.

"Hindi China ang nagpuput-up ng towers sa loob ng kampo. Dito is a Philippine company, investor lang po 'yung isang Chinese company diyan, 40%. Now the good senators mentioned about the systems to be put on towers. Ang katotohanan po niyan, ay gumawa kami ng studies, Smart and Globe are also using Huawei, which is Chinese technology. 'Yun pong kanilang base or poste ng kanilang sistema ay Huawei lahat," Lorenzana explained.

"So what is the difference between them and DITO kung ang mga equipment na ginagamit ay parehong Chinese. We single out DITO but not the other two just because there's an investor there na Chinese. I think it's immaterial kung ang investor doon ay Chinese o hindi," he added.

Lorenzana further insisted that security experts from the Armed Forces of the Philippines have looked into the concerns on the agreement between the DND and the telecommunications firm.

"Pinag-aralan po ito ng ating security people sa AFP at nag-ano pa sila ng mga experts. It's very difficult actually for the company to eavesdrop on the security operations of the AFP all over the country," Lorenzana said.

Opposition Senator Risa Hontiveros opposed Lorenzana, saying that it is important to consider the 40% Chinese ownership of DITO. She also mentioned that other countries have expressed their concerns against using Chinese technology.

She also said DITO is not being singled out.

"They are very material, lalo na kahit 'yung mga mas technologically-advanced na bansa kaysa sa atin ay isa-isa, sunod-sunod ng nagbaban sa paggamit ng 5G technology ng Tsina sa kanilang mga bansa dahil kahit sila naga-alala na hindi mareresist ng kanilang mga IT capacity 'yung panghihimasok ng Tsina sa kanilang information systems," Hontiveros said.

Lorenzana, meanwhile, suggested that the Congress should pass a law that will prohibit the entry of Chinese technology into the Philippines as he noted that China Telecom's investment with DITO is approved under the 1987 Constitution.

"'Yung investment diyan ng China Telecom is authorized by the Constitution. Ngayon, kung ayaw natin silang... ang end 'yung prangkisa, binigay na natin sa kanila. Now, if we do not really want them, we should follow the lead of some of the countries all over the world that ban Chinese technology from coming in," Lorenzana said.

"Siguro, magpasa tayo ng batas na huwag nating papasukin 'yung mga 'yan kasi kung legal naman ang pasok nila dito, it is... after the fact na itong ginagawa natin na kinukwestiyon natin 'yun pero noong nagi-invest sila, wala naman tayong sinasabi," he added.

AFP earlier signed an agreement with DITO allowing the latter to build facilities and install equipment inside military camps despite some apprehensions from several groups and lawmakers.

The AFP has assured the public that the installation of telecommunication facilities in camps will not pose risks to national security.

Earlier, AFP chief General Gilbert Gapay directed the updating of guidelines and crafting of implementing rules and regulations on the agreements between the military and telecommunication firms.

The DND is proposing a P283.2-billion budget for fiscal year 2021. Of that amount, P208.7 billion are regular funds and P74.5 billion are for the pension for AFP retirees and war veterans.

Lorenzana said P500 million is allocated for the cybersecurity capability of the agency, which includes protecting the state's security from outside threats.—AOL, GMA News