David vs Goliath

A Pasay City court has issued arrest warrants against top executives of Chevron Phils. (formerly Caltex Phils.) after it found probable cause to charge the oil company with the crime of monopolies and combinations in restraint of trade.

Subject of a manhunt by the National Bureau of Investigation (NBI) are Chevron officials Timothy Leveille, Rebecca Alivio, Steven Mulvaney, Aner Anda, Randall Johnson, Armando Diaz, Glenn Lynch, Leo Vasco Dagamac and Husain Shibly Latiff.

Other Chevron officials charged, but have already posted bail, are Ramon  Ortiz, Frumencio  Deguito, Carlito Lopez, Carol Bautista and Rafael Medina Jr.

The Pasay City Regional Trial Court, Branch 114, has likewise issued a hold departure order against the said Chevron executives.

The case stemmed from a complaint filed against Chevron by the Petroleum Distributions and Services Corporation (PDSC), a Filipino-owned small gasoline dealer company.

PDSC alleged that it was still a dealer of Chevron when it found in 2003 that the oil company was giving preferential discounts in the prices of its products to gasoline stations owned by the oil giant, otherwise known as Company Owned, Company Operated (COCO) stations.

In its order dated May 16, 2014, the court said a monopoly was created when Chevron gave preferential discounts to COCOs to the disadvantage and eventual closure of PDSC which was then operating as a Company-Owned, Retailer-Operated (CORO) gasoline service station under a Dealership and Lease Agreement. 

In its order, the court noted that “said preferential discounts controlled the prices of Chevron products giving higher margins of profit to them that created a more saleable and profitable market for COCO stations for Chevron products.

It added that PDSC was not able to compete given the much less discount given to it.

The court, explained that the officers of Chevron were the ones who created and approved the policies of the corporation, as in fact they knowingly permitted the policy pertaining to giving preferential discounts to COCO stations. 

PDSC president Conrado Limcaco said this is one of the very rare occasions where a David, represented by a small Filipino business company is putting up a fight against a Goliath in the name of genuinely free and honest trade.

In an earlier case filed by PDSC against the oil giant over unfair competition and damages, the Pasay City RTC ruled that the pump prices of fuel are not actually at the discretion of the dealer because they are compelled to follow the prices directed by Chevron’s  marketing representatives. 

According to Limcaco, the solution is for Congress to revise the  oil deregulation law and establish an effective regulatory board for oil products with real powers that is capable of protecting Filipinos from overpricing and price manipulation by the big oil companies.

Last-ditch attempt

When is there savings? This appears to be at the heart of the matter in the continuing debate on the legality of certain components of the Disbursement Acceleration Program (DAP) which the Supreme Court has declared to be partially unconstitutional.

That use of the savings from unpursued government projects that would have otherwise reverted to the government treasury is what the government has clarified in its motion for reconsideration.

Government lawyers insist that the President can realign or transfer the savings for the pursuit of noteworthy projects.

On the matter of the MR, it can be safely said that the SC ruling is not yet final since there is still a pending MR meant to point out any error in the appreciation of the DAP issue.

It has to be noted here that the DAP disbursements’ legality  for which the Supreme Court (SC) has found no fault, citing “good faith” hinges on this all-important question on what constitutes savings. This is precisely what President Aquino has underscored in his appeal to the nation about the DAP issue. It would have been doubly difficult for the government to fast-track huge infra projects unless it did so with dispatch.

Under the SC ruling, the savings could only be spent after the year ends. But then, government lawyers argue that if the state were to wait that long, then by the time the government funds can be used, then it might be too late.

As the nation waits out the SC’s decision on the MR, it must be emphasized that the initial DAP decision is not yet final and executory. Until then, it would do well for everybody to read and digest what the government and the SC have already said on the matter.

BIR goes digital

The Bureau of Internal Revenue (BIR), in its effort to reach out to taxpayers, will be launching its social media accounts this month.

BIR said that being part of social media will allow the agency to help disseminate information faster, instead of relying solely on their official website.

The social media accounts will also serve as an additional venue for implementation of their programs.

According to the BIR, they will be part of the Google Plus, Facebook and Twitter community. It will also launch its YouTube channel.

BIR said that by maximizing the use of social media, they will be able to bridge the gap between the office and the taxpayers at no cost to the government.

Part of the objectives of this move is to increase taxpayer awareness on processes and procedures, programs, new policies, and amendments to policies as well as clarificatory provisions of the tax code to improve taxpayer compliance by reminding the tax returns deadlines; and, to improve delivery of taxpayer service.

BIR commissioner Kim Henares has acknowledged the importance of social media as a new tool in going after suspected tax evaders.

She said social  media is another platform for lifestyle checking, citing as an example the case of Janet Lim-Napoles’ daughter, Jeane, who flaunted her luxurious lifestyle online.

To know more about BIR’s plans and programs, visit the following social media sites:

https://facebook.com/birgovph

https://twitter.com/birgovph

https://plus.google.com/105308525837548301082/about?hl=en

https://www.youtube.com/channel/UCkCcvUugLjDtEzAdfPDr_Ow/feed?view_as=public

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