Gov’t can audit oil firms, says Malacañang
By Michael Lim Ubac, Gil C. Cabacungan Jr.
Philippine Daily Inquirer
First Posted 02:48:00 07/23/2008
MANILA, Philippines—Stung by criticism that it failed to force the “Big Three” oil companies to publicly disclose their soaring profits as global prices of crude hit the roof, Malacañang Tuesday said that it had the power to audit oil firms.
Deputy presidential spokesperson Lorelei Fajardo said the task force on energy created under the Oil Deregulation Law was “mandated to conduct periodic audit of all oil companies as provided (for in the law).”
“We leave it to them to properly scrutinize the books of the oil companies,” Fajardo said.
The joint task force is composed of the departments of energy and justice, and is separate from the presidential task force on energy contingency chaired by Executive Secretary Eduardo Ermita, with Energy Secretary Angelo Reyes as the vice chair.
Malacañang, through the energy department, has long ordered an audit of the books of the Big Three, even enlisting the help of top accounting firm SyCip Gorres Velayo & Co. (SGV), but has so far kept the audit report from the prying eyes of the public.
Fajardo said that the Commission on Audit (COA) could also scrutinize the books of the oil firms, a move sought by Parañaque Rep. Roilo Golez because the agency “can produce the best results.”
“Public interest is paramount ... we trust that COA will conduct itself in the highest degree of independence and integrity,” she said.
Moves to open the books of giant oil companies gained ground in the Senate.
Senate Minority Leader Aquilino Pimentel Jr. said that having the COA audit the books of the oil firms would make the probe “less political.”
Sen. Alan Peter Cayetano said he supported a full-blown review of the oil companies’ books because the government should start being the protector of the people.
Sen. Francis Escudero called for the immediate firing of Reyes for allegedly failing to come up with any concrete answer to the public’s lingering doubts on the justification for the series of oil price hikes.
Sen. Panfilo Lacson said a full audit of the oil companies’ financial records was the “real intervention” that the people want to get from President Gloria Macapagal-Arroyo, not just appealing for a temporary reprieve in the form of a price rollback.
“It’s time for government to intervene in accordance with existing laws to check on possible exploitation and abuse by so-called businessmen whose only passion in life is profit,” Lacson said.
Press Secretary Jesus Dureza said it was within the purview of the oversight powers of Congress to compel oil companies to open their books.
“Congress is perfectly within its prerogative to take action to protect the interest of the people,” Dureza said.
“At the same time, I strongly urge oil companies to also go direct to the ‘masa’ (masses) to keep the public posted on the rationale for price hikes. It is incumbent upon oil industry players to explain to the public—in the language ordinary people can understand—issues that touch their day-to-day lives,” he said.
Dureza said public information was “so critical a sector like oil is crucial,” but it should be delivered in a language understandable to the poor.
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