Manila Regional Trial Court continues hearing case vs Big 3

MANILA, Philippines - The Manila Regional Trial Court (RTC) yesterday ruled that it would continue to hear the case filed by the civil society group Social Justice System (SJS) against the “Big Three” oil companies – Pilipinas Shell Petroleum Corp., Chevron Phils. Inc. and Petron Corp. – for cartelization and predatory pricing.

Manila RTC Branch 26 Presiding Judge Silvino Pampilo Jr. denied the motion to dismiss filed by the counsels of the three companies, ruling that the issue had already been resolved on Dec. 17, 2003 by then Acting Presiding Judge Oscar Barrientos.

Pampilo said the copies for Petron and Chevron were received on March 2, 2004, while Pilipinas Shell received the same on March 3, 2004.

In denying the motion, Pampilo said that “respondent Chevron Phils. Inc. failed to raise new matters that would warrant the reversal of this Court’s previous ruling.”

Copies of the order issued were sent to the three oil companies and to SJS.

The resumption of the hearing will be on April 23, 2009.

In open court last Feb. 23, the SJS asked the Manila RTC to compel Shell, Chevron, and Petron to open their books for investigation by the Commission on Audit (COA), the Bureau of Customs (BOC) and the Bureau of Internal Revenue (BIR) in order to determine once and for all whether there is monopoly, predatory pricing or cartelization by the oil firms.

Pampilo said he would rule on the petition to open the books of the three companies before the resumption of the hearing.

On March 21, 2003, the SJS filed a petition for declaratory relief with the Manila RTC naming the three oil companies as respondents.

The SJS raised the issue of whether the oil companies were committing cartelization and predatory pricing under Section 11 of Republic Act 8479, and monopoly and combination in restraint of trade prohibited under Article 186 of the Revised Penal Code (RPC).

The Department of Energy-Department of Justice (DOE-DOJ) Task Force conducted an investigation and submitted a nine-page report to the court saying that “there was no evidence showing that the oil companies committed a monopoly or a combination in restraint of trade in violation of Article 186 of the Revised Penal Code (RPC).”

The report also emphasized that “there was likewise no evidence showing that the oil companies committed cartelization as defined under Section 11 (a) of RA 8479.”

However, SJS lawyer Vladimir Cabigao said they were not satisfied with the report.

“That’s why we are moving for the examination of the books of the oil companies by the Commission on Audit, Bureau of Customs and Bureau of Internal Revenue. They (DOE-DOJ Task Force) are not competent to make a determination. They have no basis,” he said.

Raul Concepcion, chairman of the Consumer & Oil Price Watch (COPW), also filed a separate petition asking the Manila RTC to declare null and void the DOE-DOJ Task Force report clearing the Big Three oil companies.

Concepcion wanted the COPW to be given the right to sue the Big Three oil companies.

He said the acts of the respondent oil companies in increasing the prices of their petroleum products simultaneously, or in quick succession of each other, despite the fact that they have purchased their raw materials at different times and at different prices, is a violation of Section 11 (a) of Republic Act 8479 and Republic Act 186 of the RPC.

He also took issue with a statement by a DOE official which allegedly backed the pronouncement of the oil companies that prices of petroleum products would soon rise in spite of reports that prices of crude oil and liquefied petroleum gas (LPG) in the world market are going down.

Concepcion also asked the Secretary of Trade and Industry to closely monitor the prices of gasoline and LPG, fearing that the Big Three might increase their prices in the next few days despite a drop in the world market.