Independent audit of oil firms to start this year

THE Energy department expects the independent audit of oil companies’ books to push through as soon as it completes the term of reference for the participating review committee.

Secretary Jose Rene Almendras said on Thursday that the department is in consultation with “all parties” for the term of reference that will guide an independent committee that will scour through oil firms’ books.

“They will make final commitment when the terms of reference is finalized,” he added.

Those selected to be part of the review committee are Government Watch chairman Raul Concepcion, former National Economic and Development Authority director general Solita Monsod, former Budget Secretary Benjamin Diokno, University of the Philippines professor Rene Azurin, economist Vic Abola, accountant Tammy Lipana and party-list representative Vigor Mendoza.

The independent audit stemmed from an offer from big petroleum companies for a review of their records and transactions amid allegations from transport groups of overpricing.

Under current regulations, oil firms are subject reportorial requirements imposed by the Energy department as mandated by appropriate provisions in the Downstream Oil Deregulation Law, or Republic Act No. 8479, the financial protocols of the Bureau of Customs, and Bureau of Internal Revenue, as well as statutory submissions to the Securities and Exchange Commission.

Meanwhile, the Energy chief said that the audit is expected to push through in February once the department completes consultations with members of the review committee and stakeholders.

“The evaluation is about margin and mark up. The accusation is that the oil companies have excessive profit margin so their idea is to open their books to show their costs relative to their selling price and their profit margin,” Almendras said.

Based on data from the DOE, the country’s so-called “Big Three” posted the heftiest profits among oil companies. Petron Corp. topped the list with earnings of P7.92 billion followed by Pilipinas Shell Petroleum Corp. (P6.02 billion) and Chevron (formerly Caltex) Philippines Inc. (P1.43 billion). –Euan Paulo C. Añonuevo, Manila Times