FPI says anti-cartel raps vs LPGMA, first of its kind

A local trade group said the government had indicted the officers of liquefied Petroleum Gas Marketers Association (LPGMA), which the Federation of Philippine Industries said marks the first ever anti-cartel case pursued by the government.

In a 10-page resolution released last Nov. 4, State Prosecutor General Claro Arellano approved the filing of a criminal case against LPGMA officers for violation of the anti-cartel provisions of the revised penal code and Republic Act no. 8479, otherwise known as the downstream oil deregulation act.

Those to be charged are Arnel Ty, Danilo Chua, Alison Sy, Rene Rosell, Ronnie Seviliana, Mar Dave Tang, Virginia Cid, Bonifacio Elena and Antonio de Rosario, all officers of LPGMA.

Federation of Philippine industries (FPI) Chairman Jesus Arranza said this move clearly provides a firm signal to the business community and foreign investors that the Aquino Administration is really bent on making the country a level-playing field for all investors and businessmen.

Arranza said that “along with President Aquino’s order creating the Competition Authority under Department of Justice (DoJ)’s supervision, the elevation in court of probably the first ever cartel case will give local and foreign investors the confidence that the Philippine government wants all businessmen here to behave properly for the benefit of the Filipino consumers.”

Whatever the outcome of the case, Philippine jurisprudence on cartel-like behaviors will be enriched, Arranza added.

Arranza stressed that the 3 big oil players in the country though members of FPI, did not have a hand nor influenced him in filing his “cartel” complaint with the DoJ. He said that LPGMA is clearly making up this story to divert attention and to picture his group as the underdog with the hope of getting sympathy from consumers.

“This diversionary tactic is a sign of weakness on the LPGMA part. The case at hand involves the violation of specific criminal laws so it is imperative that they should confine their arguments on their legal defenses and not to that and not resort to character attacks,” Arranza said.

Arranza said he has through the years established a track record of fighting business behavior that is inimical to the interest of the consumers, the business community and the economy as a whole. Thus, the filing of the cartel case against LPGMA is not an isolated case, he added.

To mention some of his advocacies, Arranza cited the case he filed with the Supreme Court that resulted in the partial nullification of executive order no 97-A issued by then President Fidel Ramos allowing individuals to buy $200 worth of goods from duty free shops in Subic and Clark. He said that the court agreed with his group’s argument that only Congress can pass laws granting tax exemptions.

Arranza said that he also has been in the forefront of the fight against smuggling by appearing in various congressional investigations involving smugging and corrupt practices of some erring personnel of the Bureau of Customs (BoC) and even in personally joining actual raids on and confiscations of smuggled goods conducted by various government agencies.

Arranza added that among others he even filed a case with the Ombudsman against former Customs Commissioner Napoleon Morales and a business group on an illegal data-encoding system that was then implemented at the BoC.

He further pointed out the fact that LPGMA was clearly not a marginalized group as putting up a refilling plant involves millions in investments and this s the reason why he questioned the accreditation by the Commission on Elections of LPGMA as a party-list group. Arranza said the case is now pending with the Supreme Court.

On the contrary, Arranza pointed out that LPGMA president Arnel Ty has a record of questionable business behavior. He said that last December 2011, the Supreme Court affirmed the filing by the National Bureau of Investigation of a complaint against Ty for the illegal refilling of branded LPG tanks. He also cited records of Energy Department’s task force on LPG enumerating various criminal cases filed against Ty and unscrupulous LPG refillers that are pending. –Daily Tribune