Judge tells BOC, BIR, COA officials: Audit Big 3 or else...

MANILA, Philippines - A Manila Regional Trial Court judge yesterday warned officials of the Bureau of Customs (BOC), Bureau of Internal Revenue (BIR), and the Commission on Audit (COA) that they would be arrested if they fail to comply with a court order to audit the books of the Big 3 oil companies.

Judge Silvino Pampilo Jr. of Branch 26 said he will issue warrants of arrest against Customs Commissioner Napoleon Morales, BIR Commissioner Sixto Esquivias IV and Commission on Audit (COA) chairman Reynaldo Villar if they fail to comply with his orders to form a panel that would audit Pilipinas Shell Petroleum Corp., Chevron Philippines Inc. (formerly Caltex) and Petron Corp.

Pampilo had issued separate orders last April 27 and May 25 directing the three government offices to form a panel of auditors to open and examine the books of account of the three oil companies.

The non-government organization Social Justice Society (SJS) had earlier petitioned the court seeking the audit of the oil companies to investigate the alleged overpricing of gasoline and other petroleum products.

“I am giving them five days upon receipt of my order to comment on the motion of SJS through Atty. (Vladimir) Cabigao, regarding their petition to issue warrants of arrest against the three heads of the agencies. Cabigao’s motion cited that the three violated Rule 71 of the Rules of Court, Disobedience of a Lawful Order of the Court. There is corresponding penalty of jail term of six months,” said Pampilo.

“I did not issue the warrants of arrest earlier because we have what we call due process of law. Both parties were given (the chance) to explain their side before the court would hand down a decision. No explanation was made yet by these agencies,” said Pampilo.

Pampilo said he would order the court sheriff to send the order to the three government agencies.

Lawyer Vladimir Cabigao, SJS counsel, said the Office of the Solicitor General (OSG) and the oil companies have been given notices about the case for them to comply with the order of the court.

“But despite the notices, they still failed to appear today before the court to attend the hearing on the motion to issue warrants of arrest of the heads of the three government agencies,” he said.

Court proceedings were conducted yesterday on the motion of Cabigao regarding the warrants of arrest.

Cabigao said the court has ordered the heads of the BOC, BIR, and COA to explain in writing why they should not be held in contempt for not showing up yesterday.

Cabigao said there are indications that there is connivance between the government agencies and the Big 3 oil companies.

“Our message is that we are serious in this fight and we are waiting for the order of the court, if our motion would be granted. If they still do not heed the order of the court, they will see themselves in jail,” he said.

Cabigao said they would have law enforcers who will serve these warrants of arrest against the heads of agencies.

He said after the State of the Nation Address (SONA) of President Arroyo, the Big 3 oil companies immediately raised their pump prices without giving prior notice to the public.

He said he is sure that the Department of Energy (DOE) knows about this increase even before it happened. Cabigao said that there is an extreme urgency for a panel to audit the Big 3 oil companies.

He said the recent P2 increase in pump prices is about 6 to 7 percent higher than last Monday’s prices, which is too much for an ordinary person.

Cabigao also urged the court to detain the BOC and BIR commissioners and COA chairman.

Pampilo stressed said his earlier order is a final order from the Manila RTC to form a panel composed of BIR, Customs and COA representatives.

“They did not appeal the order. That’s why COA, Customs and BIR are directed to explain in three days from receipt order why they should not be cited in contempt,” said Pampilo.

Pampilo had denied last July 7 the Motion for Reconsideration (MR) of the Office of the Solicitor General (OSG) and the Big 3, asking to stop the opening of the books of account of the oil companies for audit due to lack of merit.