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imns



Energy department secretary faces contempt raps

By Tina Santos
Philippine Daily Inquirer
First Posted 21:57:00 10/27/2009

Filed Under: Oil & Gas - Downstream activities, Economy and Business and Finance, Graft & Corruption

MANILA, Philippines—The Manila Regional Trial Court has ordered Energy Secretary Angelo Reyes to explain why he should not be cited in indirect contempt for his failure to attend a hearing on price manipulation charges against the country’s Big Three oil firms.

Reyes was earlier subpoenaed by Judge Silvino Pampilo Jr. to testify on a motion for the issuance of a temporary restraint and writ of preliminary injunction against the continuing increase of oil prices “on a weekly basis.”

Reyes was supposed to testify as a witness for Petron Corp. in connection with the case filed by the Social Justice Society (SJS). The other respondents in the case are Pilipinas Shell and Chevron.

Pampilo gave the Office of the Solicitor General, which represents Reyes, five days to explain why Reyes should not be cited in indirect contempt, an offense punishable with six months imprisonment and P30,000 fine or both.

During the hearing, state lawyer Bernadettte Esguerra told the court that the subpoena issued to the energy secretary should be quashed in light of Executive Order No. 839, which directs oil companies to bring down prices to their Oct. 15 levels.

President Macapagal-Arroyo issued the order on Friday.

“EO 839 has mooted plaintiff SJS’ motion, which is the subject matter of testimony sought by the subpoena,” Esguerra said.

However, lawyer Vladimir Cabigao of SJS argued that EO 839 and the motion seeking to stop oil price increases were two different things.

“EO 839 was issued because of the state of calamity and it covers Luzon only. The motion we filed seeks to stop the continuous oil price hikes and the overpricing in petroleum products and its scope is nationwide,” Cabigao said.

The SJS lawyer called Reyes a coward. “He said before that he was willing to testify for the oil companies. Now that he was given the chance, he did not show up,” Cabigao said.

He said OSG’s motion to quash and Petron’s motion to withdraw Reyes’ subpoena, which were both filed only on Monday, violated the three-day notice rule.

In its motion to quash, the OSG also claimed that Reyes could not act independently of the Department of Energy and Department of Justice Task Force relative to issues on “unreasonable rise in petroleum prices.”

The OSG also said that respondent Petron’s application for Reyes’ subpoena was insufficient in form and substance. It said the oil firm did not state in its application the purpose of the subpoena or provide specifications, so it should have been dismissed outright.



Copyright 2009 Philippine Daily Inquirer. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.



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