OSG sides with oil giants in bid to stop opening of firms’ books of accounts

MANILA, Philippines — The Office of the Solicitor General (OSG), whose task is to represent the government in court cases, asked the Manila Regional Trial Court (RTC) to stop the opening of the books of accounts of three oil giants amid allegations of oil price monopoly. In a motion for reconsideration, the OSG asked Judge Silvino Pampilo Jr.of RTC Branch 26 to set aside his own April 27 court order to open the books of accounts of Petron Corp., Pilipinas Shell and Chevron Philippines. Pampilo earlier ordered the examination of the books of accounts of the three oil companies upon the motion of the Social Justice Society (SJS), which has alleged that the “big three" are operating as a cartel, which is prohibited under the Oil Deregulation Law. Said the SJS petition, "consumers of petroleum products are significantly affected by the rising oil price and for this reason have sought judicial intervention for a declaration of their rights or duties under the statute." In granting the SJS petition, Judge Pampilo directed the Commission on Audit (COA), the Bureau of Internal and Revenue (BIR), and the Bureau of Customs (BOC) to form a panel of examiners to “open and examine the cash receipts, cash disbursement books, purchase orders on the petroleum products, delivery receipts, sales invoices, and other related documents on the purchases of the petroleum products covering the period of January 2003 to December 2003." In its petition, however, the OSG opposed opening of the books of accounts of the three companies, arguing that “the ordered examination is not sanctioned by Rule 27 of the Rules of Court of by RA 8479." It also said the order of examination directed to the COA, BIR and BoC is beyond their respective jurisdiction and mandate, the conduct of which shall make the conduct of examination ultra vires." “If the purpose of the ordered examination is merely to determine the reasons for the frequent increase in the petroleum products and subsequently to determine any violation of the Revised Penal Code or Republic Act No. 8479, it can be done even without the ordered examination," said the OSG. Last May 13, the SJS asked the Manila RTC to junk the motion of Chevron Phils. Inc. which is seeking not to open the books of accounts of three oil giants, saying that consumers of petroleum products are significantly affected by the rising oil prices. SJS and Vladimir Alarique T Cabigao reiterated to the Manila RTC the need for the opening of the books of accounts of the three oil giants when strong public interest is involved. ]SJS and Cabigao filed Comment On the Motion For Reconsideration of Respondent Chevron Philippines Inc. before the sala of Judge Silvino Pampilo Jr., of the Manila Regional Trial Court (RTC) Branch 26, praying that Chevron’s motion for reconsideration (MR) be denied. - GMANews.TV