Department of Energy, NEDA fail to reconcile figures

MANILA, Philippines – Talks between the Department of Energy and the National Economic and Development Authority (NEDA) on the alleged overpricing of oil companies ended at a “deadlock.”

At a meeting with stakeholders yesterday, Energy Secretary Angelo Reyes and NEDA director general Ralph Recto failed to reconcile their figures and decided to hold “continuing dialogues.” “We made our presentation. They commented on our presentation. Naturally, we do not expect to come up into an agreement in the first meeting, that’s why it is necessary to have a continuing dialogue. Naturally, the oil companies will think their prices are reasonable. I think our computations are reasonable. We will continue to talk,” Rector said.

Reyes, however, described the meeting as “fruitful and productive,” having been able to listen and discuss the data presentation of NEDA on the supposed P8 per liter overpricing of oil products. What was agreed upon during the meeting, Recto told a press conference that it would be NEDA that would conduct the audit of the oil companies instead of the Commission of Audit (COA) as earlier announced by Reyes.

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

“I wrote to the Commission on Audit chairman Villar and inquired on this possibility of the COA assisting us in auditing the audited financial statements of the oil companies as of the year-end 2008. And they said they cannot do it, because it’s not within their mandate and however NEDA because of its power to set policies can go over these audited financial statements. As basis for policy, we will have the audited financial statements of the oil companies forwarded to NEDA so that it becomes a basis policy formulation,” Reyes said.

Data

Reyes said they would officially turnover the data of the oil companies to NEDA soon. “We have asked the oil companies to submit their audited financial statements for 2008 (year-end) and as soon as that is complete we will forward it to NEDA,” the energy secretary said. Recto, for his part, said NEDA 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.

According to Recto, 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. Of course, if NEDA says it will be automatic, because you got to get public support for it as well, including the different government agencies and the legislative branch too, if there is legislation needed, right?,” Recto said. “But it’s good that we start looking at this process,” the NEDA chief added.

The socio-economic planning secretary said this may be the first time that NEDA would do this kind of audit and might tap experts to assist them. –Donnabelle Gatdula, Philippine Star