Government panel to probe 'Big 3' oil firms

MANILA, Philippines - A panel comprised of the Commission on Audit (COA), Bureau of Internal Revenue (BIR) and Bureau of Customs (BOC) will examine the receipts and books of accounts of Pilipinas Shell Petroleum Corp., Chevron Corp. and Petron Corp. to determine if they violated laws on monopoly, predatory pricing or cartelization.

Judge Silvino Pampilo Jr. of Manila Regional Trial Court Branch 26 ordered yesterday BIR and BOC commissioners to form a panel with the COA to look into the cash receipts, cash disbursement books, purchase orders on petroleum products, delivery receipts, sales invoices and other documents related to the petroleum product purchases made by the country’s three largest oil firms from January to December 2003.

The panel was ordered to submit its report to the court within three months from receiving yesterday’s order.

Meanwhile, Shell questioned the other day the validity of the court’s April 27 order for the COA, BIR and BOC to open the oil firms’ books to determine if they violated the Revised Penal Code and the Oil Deregulation Law.

Under the Rules of Court, Shell has 15 days from receiving the order within which to file a motion for reconsideration, or 60 days within which to appeal the order to the Court of Appeals, Shell added.

Shell lawyers Jannet Regalado and Erwin Orocio said the court’s April 27 order is contrary to law because it “is beyond the powers of the said government agencies.” Shell said overzealous agents of the COA, BIR and BOC might take the order as “unbridled license” to force the three oil firms to produce receipts and other papers for the year 2003.

Taxpayers are required to keep records for taxation purposes only for three years, Shell added.

Last April 27, Pampilo granted the petition of a civil society group for Shell, Caltex and Petron to open their books of accounts to government examination.

“There is a strong public interest involved and considering that there is a need to uncover the mystery surrounding the frequent increase in (the prices of) petroleum products,” read the court decision.

While the case against them is still pending in court, the three oil firms would still be able to raise their prices since the Oil Deregulation Law is still in effect, the court said.