Nullification of anti-terror law could endanger economy, Calida claims

Solicitor General Jose Calida on Wednesday claimed that the nullification of the Anti-Terrorism Act of 2020 could endanger the country’s economy, which fell into a recession last year due to the COVID-19 pandemic.

“The nullification of the ATA would compromise our international economic commitments and endanger our economic survival as a nation,” he said.

Paris-based anti-money laundering watchdog Financial Action Task Force (FATF) had set a deadline for the enactment of a measure to address gaps in the Philippines' fight against terrorism so that the country would not be included on its "grey list," which would identify the Philippines as a risk to the international financial system for having strategic deficiencies in its anti-money laundering and counter-terrorism financing framework.

The anti-terror law took effect last July, well ahead of the February 2021 deadline.

“Without such law the Philippines will be treated as a leper. FATF will see to it to either blacklist us or put us on [the] grey list,” he said.

Calida said grey listing reduces investor and lender confidence.

“It may also result [in] limited access to banking or financial services. Millions of OFWs and their families will be severely affected by the higher cost of remittances which reduce the amount of their support,” he said.

“Philippine banks will also increase loan interest to borrowers. With higher interest rates, the effect will trickle down to businesses in the country, which will have higher costs of operations. Clearly, grey listing would seriously affect the country’s international trade, remittances, and humanitarian financial flows that support the country’s economic growth and development.”

He said the enactment of the anti-terror law made the country compliant with its obligations under the  International Convention for the Suppression of the Financing of Terrorism and United Nations Security Council Resolution 1373.

Calida defended the law before the Supreme Court (SC) on Tuesday and pleaded to the justices to dismiss the 37 “frivolous lawsuits” due to alleged lack of justiciable controversy and violation of the hierarchy of courts, among other reasons.

Retired SC justices Antonio Carpio and Conchita Carpio Morales are among the law’s critics, as well as lawmakers, activists, teachers, students, artists, and journalists, who argued that it could violate basic rights and legitimize supposed state attacks against government critics.

But Calida said there were safeguards in the law to prevent abuse such as a prohibition against torture or coercion during interrogation and upholding the constitutional rights of persons under custodial investigation.

“Every second counts in the fight against terrorism. A fleeting moment could spell the difference between lives lost and lives saved,” Calida said. “Outright dismissal is the only choice available in this case.” — BM, GMA News