President Estrada said yesterday he may absolve Pilipinas Shell and Petron Corp. of any criminal liability in connection with the tax credit scam, provided the two companies settle the P2 billion they owe the government in back taxes.
The President noted that the two oil firms were "unwitting victims" of the syndicate engaged in the illegal acquisition and sale of tax credit certificates (TCCs) which allegedly defrauded the government of hundreds of billions of pesos in taxes.
"We are studying this case very carefully because if they (Shell and Petron) paid in good faith (to the syndicate) and did not know these TCCs were fake, then we can really pardon them, but we will require them to pay the billions (of pesos they owed the government)," Mr. Estrada said.
The Chief Executive has created a four-member committee to study the possibility of a compromise settlement on the P2 billion which the two oil firms paid for TCCs peddled by certain garment manufacturers under the previous administration.
At the same time, Mr. Estrada vowed to catch a "big fish" with the drive on the TCC scam.
"This may be my first big fish and I need the cooperation of the judiciary," he said.
He said certain government officials up to the level of Cabinet undersecretary might be involved in the irregularity.
Executive Secretary Ronaldo Zamora revealed earlier that negotiations were underway for the compromise settlement of the P2 billion by Shell and Petron.
Meanwhile, the National Power Corp. (Napocor) denied yesterday any involvement in the allegedly anomalous issuance of billions of pesos worth of TCCs to Shell and Petron.
The Napocor stressed that it only uses authentic TCCs issued by the Bureau of Customs and the Department of Finance, even as it welcomed the move of the Office of the Ombudsman to conduct an investigation into the matter.
In a statement, the state-owned power firm also categorically denied the alleged participation of Juan Carlos Guadarrama, manager of its materials management department, in the issuance of TCCs to oil companies.
At the House, congressmen want to summon Energy Secretary Mario Tiaoqui to find out if he has been partial to the big three oil companies--Petron, Shell and Caltex.
Rep. Apolinario Lozada (Lakas, Negros Occidental) said there have been "many indications" pointing to Tiaoqui's partiality towards the big three.
"It's high time for the House to make the necessary verifications so that appropriate recommendations regarding Secretary Tiaoqui's fate may be given by this honorable body," he said.
Lozada noted that Tiaoqui's "deafening silence" on the sequential increases undertaken by the oil firms "is already a basis to doubt his capacity to protect the interests of great masses."
The lawmaker said this suspicion was further bolstered when the energy secretary took a position against the creation of the National Oil Exchange which would handle the purchase, storage and distribution of refined petroleum products.
"Not even a whimper was heard from Secretary Tiaoqui when the people were protesting the successive hikes in oil prices. He also took a stand opposing the proposed bill creating the exchange that would undoubtedly affect the interests of the three oil companies," he said.
"If that's not partiality, I don't know what is."
Lozada also criticized the newly-created Economic Coordinating Council (ECC) for rejecting the creation of the national exchange without seriously considering its benefits to the masses.
He joined other congressmen, headed by Bataan Rep. Enrique Garcia, author of the oil exchange bill, in asking the ECC to reconsider its position.
House Bill 8710 seeks to establish a national oil exchange and in the process break up the cartel of the big three oil companies to substantially lower the prices of petroleum products.
Under the bill, the government would put up an international oil exchange which would bid out monthly to more than 40 local and foreign oil refineries and traders the country's total requirements of gasoline, diesel, kerosene, liquefied gas and other refined oil products.
It seeks to grant consumers the lowest possible price as Shell, Petron and Caltex are expected to make their prices as competitive as possible with the operations of the exchange.