Palace disowns SolGen move to stop oil audit

Only Solicitor General Agnes Devanadera can explain what prompted her to file a motion to stop a court order for the government to proceed with an audit of the books of the country’s “Big Three” oil companies after Malacañang said yesterday it did not sanction the move.

Press Secretary Cerge Remonde said the Palace even believed Devanadera’s motion for reconsideration filed with the Manila Regional Trial Court (RTC) asking Judge Silvino Pampilo Jr.of Branch 26 to set aside an order last April 27 for Petron Corp., Pilipinas Shell Petroleum Corp. and Chevron Philippines to open their books was “contrary to public interest.”

Remonde said Malacañang will ask Devanadera for an explanation on her decision “which seems to be contrary to the desire of our government.”

“Only Devanadera can explain that. Unless and until we hear her side, it would be hard to comment on her decision,” Remonde said.

The Manila RTC had ordered the Commission on Audit (CoA), the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BoC) to form a body to audit the financial books of the three firms which, it said, was meant to determine whether or not allegations of cartelization and predatory pricing on the three oil giants have basis.

Devanadera, in her motion, however, said government agencies would exceed their mandate if they conduct the audit.

Various groups have accused oil companies of profiteering with the price levels on fuel which do not reflect the already weak world crude oil prices.

Even Socioeconomic Planning Secretary Ralph Recto said petroleum prices should only average P32 per liter against the current prices of P39.07 to P40.85 per liter for gasoline.

“Assuming that oil companies had purchased their stock of Dubai crude at $50 per barrel or equivalent to P2,408 per barrel based on an exchange rate of P48.16 per dollar at that time, then pump prices of domestic gasoline should be about P32.16,” Recto said.

He said that even the most expensive gasoline in the United States which is the premium reformulated retail gasoline cost $2.343 per gallon or P29.57 per liter at P47.77 to $1 as of April 20.

Pampilo issued the ordered for the opening of the oil companies books acting on a petition of the Social Justice Society (SJS) that alleged the big three companies were operating as a cartel in violation of the Oil Deregulation Law.

SJS in its petition said consumers of petroleum products are significantly affected by the high oil prices “and for this reason have sought judicial intervention for a declaration of their rights or duties under the statute.”

Devanedera, in her motion for reconsideration, said the court order for COA, BIR and BoC to conduct the examination of the oil firms’ books “was 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,” Devanadera’s petition added.

Chevron Phils. Inc. earlier filed a similar petition to stop the court order to open the oil companies’ financial books. –Riza Recio, Daily Tribune