Court's order for COA, BIR, BOC to open and examine books of accounts of 3 oil giants stays

MANILA, Jul 07, 2009 (Asia Pulse Data Source via COMTEX)
A Manila regional trial court (RTC) denied on Tuesday the plea of the three oil giants and the Office of the Solicitor General (OSG) opposing the opening and examination of the oil companies' books of accounts amid allegations of oil price manipulations.

In a two-page order, Judge Silvino T. Pampilo Jr., of the Manila RTC Branch 26, who is hearing the civil case for declaratory relief, denied for lack of merit the motion for reconsideration (MR) filed separately by Chevron Philippines Inc., Petron Corporation and Pilipinas Shell.

Pampilo also denied the motion for reconsideration of the Office of the Solicitor General which is representing the Commission on Audit (COA), the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BoC).

The OSG earlier clarified its stance on the controversial April court order, saying that private firms and not the three government agencies can audit the books of accounts of the three oil giants.

In an open court during earlier hearing, OSG's associate solicitor Joel Villaseran clarified before Pampilo that the OSG is not contesting the judge's order to audit the books of account.

However, Villaseran said the undertakings cannot be done by the Commission on Audit (COA), Bureau of Internal Revenue and the Bureau of Customs (BoC) and explained that conducting audit on books of accounts is beyond the jurisdiction of the three government agencies.

Pampilo also granted the motion of the Social Justice Society (SJS) and lawyer Vladimir Alarique T. Cabigao to stand by his earlier court ruling ordering the opening of the books of accounts of the three oil giants, saying that the judiciary, as an agency of the State, should act as a parent of the people, especially in the matter of public welfare like allegations of oil price manipulations.

The court order, directing the COA, BIR, and BoC to open and examine the books of accounts, stays.

"There is no law or jurisprudence that prohibits government entities to perform acts which will best serve the public. The doctrine of parens patriae calls for the state to intervene against an abusive or negligent natural parent, legal guardian or informal caretaker, to act as the parent of any child or individual who is in need of protection,"said Pampilo.

Pampilo further said "the issue of oil prices affects every Filipino citizen, thus, it is the duty of the state to act as guardian and to give ample protection to its citizens."

"Although, Sycip, Gorrez, Velayo-University of Asia and the Pacific (SGV-UA&P), was previously commissioned by the Department of Energy (DOE), this Court cannot take judicial notice of the report or findings of SGV-UA&P because the same was not submitted before this Court," he said.

Pampilo also granted the motion of Cabigao for his inclusion in the panel that would open and examine the books of accounts, considering that he is a Certified Public Accountant.

The judge noted that the three oil companies and the OSG have opposed the opening and examination of the defendants? book of accounts on the ground that the COA, BIR and BOC have no authority to examine the books of accounts of the respondent oil companies and other financial records of respondents (Chevron, Shell and Petron) (because) these were already examined by SGV-UA&P pursuant to a directive from the DOE.

"It is worthy to note that the oppositors are emphasizing the mandate of the COA. However, the latter is not the only government entity tasked to open and examine the books of accounts of the respondents but also the BIR and BOC," said the judge.

Pampilo earlier issued an order directing COA, BOC and BIR to form a panel that would conduct the examination of cash receipts, cash disbursement books, purchase orders on petroleum products, delivery receipts, sales invoices and other related documents on the purchases of petroleum products of the three firms Chevron, Petron and Pilipinas Shell -- from January 2003 to December 2003.

The SJS filed a case against Petron, Shell and Chevron in 2003, amid allegations of price oil cartel.

I believe that the books of accounts of 3 oil giants should be opened and examined by Commission on Audit, BIR and BOC, to actually determine if there are really telling the truth in the constant rising of oil prices.

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