MANILA – A senior member of the Arroyo Cabinet chided the chief government lawyer for “siding” with the country’s three major petroleum companies which were ordered by a lower court to open their books of account and records to determine whether they are using a pricing system that is disadvantageous to consumers.
Press Secretary Cerge Remonde told a radio interview Malacanang asked Solicitor General Agnes Devanadera, as the chief government lawyer, to explain why she was blocking the audit of the Petron Corporation, Pilipinas Shell and Chevron Philippines (formerly Caltex), known as the “Big 3″ oil companies.
“We will ask Solicitor General Devanadera to explain why she did something like that,” Remonde said. “It seems to be contrary to the desire of government.”
Remonde pointed out Malacanang has always taken the position that the pump prices of oil in the country should reflect movements in the world market and that increases should be within reasonable limits.
The government, he added, also supported an audit of the oil companies’ books of account in the spirit of transparency and to provide the consumers with the assurance that no overpricing is taking place.
Earlier, the Regional Trial Court of Manila ordered the Commission on Audit, the Bureau of Customs and the Bureau of Internal Revenue to form a panel that would look into cash receipts, cash disbursement books, purchase orders on petroleum products, delivery receipts, sales invoices and other related documents on the purchases of petroleum products from January to December 2002.
The court issued the order on petition of the Social Justice Society (SJS) a group of lawyers, who accused the Big 3 of using a pricing system that is disadvantageous and harmful to the welfare of the millions of Filipino consumers.
The court gave due course to the SJS stand that an audit would determine if the oil firms have violated provisions of the Oil Deregulation Law which bans cartelization and predatory pricing as well as the Revised Penal Code which prohibits monopoly and restraint in trade.
But in a move that apparently caught Malacanang by surprise, Devanadera filed a motion asking the court to reconsider its decision ordering a thorough audit of the three major oil companies.
Devanadera argued that the government agencies ordered to create a panel would be exceeding their own mandate if they are compelled to conduct the audit.
In a strongly-worded petition, Devanadera also branded the court order as “unwarranted,” saying it “would be improper and unjust to demand compliance with what is not sanctioned by law.”
She added the three government agencies could only examine the oil firms’ book of accounts if it is for the purpose of determining tax liabilities, franchise taxes, customs and tariff duties as well as the fixing of rates for public utilities, like power companies.
This developed as opposition Senator Loren Legarda joined Malacanang in asking Devanadera to explain why she is opposing the audit of the oil companies.
Legarda pointed out that the office of the solicitor general should not give the impression that it is representing the giant oil companies and not the government.
The woman senator stressed that Devanadera and her staff should not have opposed the court order because there are legal issues involved which should have been raised by the lawyers of the oil companies, and definitely not by the chief government lawyer.
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