Private auditors may open oil firms’ books–govt

Reyes, Recto meeting on fuel pricing ends in deadlock

The government said private audit  firms could do the examination on the books of oil companies to make their pricing more transparent. Presidential spokesman for economic matters Gary Olivar said Solicitor General Agnes Devanadera already gave an explanation why she opposed an impending audit by government audit organization.

“The Solgen clarifies that her objection really has nothing to do with any intention or desire on her part to get in the way of opening of the books of the oil companies,” Olivar said. “The point she was making [about] the order of the court [for] the Commission on Audit, Bureau of Internal Revenue [BIR], Bureau of Customs to conduct these audits was that none of these agencies are empowered to do such activity.”

Olivar said that since those government agencies couldn’t do the audit, private agencies and association or corporations might conduct the audit. He said the Philippine Institute of Public Accountants could do it.

He said Devanadera has maintained that the Audit commission specifically is authorized only to open the books of government agencies and government-owned corporations while the BIR is authorized to examine financials to determine tax liabilities.

The Palace spokesman also called on the oil companies to be more transparent and subject themselves for the audit.

“In our case we are a listed company, so our financial statements really have to be opened to the public. So we are submitting our records to the Securities and Exchange Commission regularly, and so we don’t see anything new here. In fact we are submitting also our financial data to the Department of Energy as required by law . . . We are confident that it will just confirm our position that our prices are reasonable,” Jose Campos, Petron Corp. vice president for marketing, said.

In a related development on Friday, Energy Secretary Angelo Reyes and National Economic and Development Authority (NEDA) Director General Ralph Recto agreed to open the lines between them after a seeming rift over their opposing views on local fuel prices.

But instead of resolving whether pump prices are overpriced or not, Reyes and Recto are having more talks.

“We came to an agreement that there should be continuing dialogue and consultation when it comes to this very sensitive matter of the oil industry, particularly pricing and supply,” Reyes said.

Recto, on the other hand, said, “I have agreed that we will consult each other very closely before issuing any statement. And also there should be closer coordination and dialogue to avoid confusion.”

The two government agencies have locked horns over fuel prices, with the Energy department head insisting that market forces rule in this matter and the NEDA chief charging that gasoline prices are “overpriced” by P8 a liter.

To settle the score, the Energy department invited Recto to a meeting last month. The official, however, was not able to attend but sent a representative to explain NEDA’s computations.

The Energy department again extended an invitation to Recto, which led to the meeting yesterday in Makati.

Despite the agencies’ standoff on fuel pricing, the two agreed to open the books of oil firms for public scrutiny yet again, this time by NEDA itself to ascertain the reasonableness of pump prices.

Reyes said the agreement came about after the Commission on Audit rejected the Energy department’s request for it to sift through oil companies accounts.

“They said it is not within their mandate to do that. So we will forward it to NEDA for purposes of policy formulation,” he said.

Fernando Martinez, Eastern Petroleum Corp. chairman, said “We take it as part of doing business in the country. And besides, it’s an official record so whatever they do with that, whether they pass it on to NEDA or what, it’s their call. Maybe its for better understanding so they will see that we have been reasonable and have nothing to hide.” –Angelo S. Samonte and Euan Paulo C. Añonuevo, Reporters,Manila Times