Oil firms’ books sent to NEDA for audit

MANILA, Philippines – The Department of Energy (DOE) has forwarded the financial statements of the oil companies to the National Economic and Development Authority (NEDA) for audit, the country’s energy czar said over the weekend.

“I have sent to NEDA the audited financial statements of the oil companies. I sent them for NEDA to examine for whatever purpose those may serve them,” Energy Secretary Angelo Reyes said.

Reyes said NEDA has not committed to how long the audit will take. “We cannot give NEDA a deadline since they are a different government entity.”

But Reyes pointed out that the DOE will continue with its function to supervise and monitor the oil companies.

“We will continue to monitor, but what I’m saying is that we provided NEDA the data also for them to do whatever they want to do with it, comment on it, and use it for whatever purpose they want to use it for,” he said.

He said while the audit is underway, the DOE will ensure that consumers are protected.

“We’ll continue to monitor the behavior of oil companies to see to it that there is no abuse here,” he added.

Reyes said they would also allow NEDA to comment on prices. “If they want to comment on the prices they can, if they want.”

In a previous meeting between NEDA and the DOE, it was agreed that NEDA will undertake the audit of the oil firms instead of the Commission of Audit (COA).

It will be recalled that Reyes tried to tap COA to assist the DOE in its audit of oil companies’ financial performances to determine if they actually charged the right prices to consumers when oil prices were at their peak a few months ago.

He explained that COA said they cannot do the audit since “it’s not within their mandate.” However, NEDA, because of its power to set policies can go over these audited financial statements, Reyes said.

NEDA director general Ralph Recto, for his part, said the agency would be willing to undertake the audit.

It’s not an added function, it’s really part of the role of NEDA to formulate plans and policies,” Recto said.

Recto said there have been moves to revisit the oil deregulation law and the audit of the oil firms may be able to facilitate any possible inputs from NEDA on this matter.

“We’ve already made suggestions of reviewing the oil deregulation law. There seems to be an aberration that the transport sector is regulated and their inputs on oil are not, which is a basic input to the transport fares. So it’s worth looking into, Recto said.

“But it’s good that we start looking at this process,” the NEDA chief added.

Recto said this may be the first time NEDA would do this kind of audit and might tap experts to assist them.

“It’s the first time that we may do this. Although in the past we make assumptions in the budget, we ask the DOE what they think will oil prices be like. That’s for budget purposes and part of planning as well. And how does that affect inflation, for instance, how will that affect our gross international reserves, the balance of payment, trade deficit, he said.

“It’s always possible, we would take a look at the resources we have at NEDA, our people, then we might require more people or get consultants or whatever is needed,” Recto said. –Donnabelle L. Gatdula, Philippine Star