MANILA, Philippines—Congress should not let the government get the short end of the stick again in pursuing another project with private companies, according to Mindanao lawmakers who renewed calls for an inquiry into the government’s loss of P53 billion in the Malampaya gas project.
Cagayan de Oro Rep. Rufus Rodriguez and Abante Mindanao party-list Rep. Maximo Rodriguez have filed a resolution asking the House energy committee to look into the issue about the division of proceeds from Malampaya.
Eastern Samar Rep. Ben Evardone also filed his own resolution for the investigation of the Malampaya project based on the COA findings.
The project involves the extraction of natural gas from waters off Palawan and its delivery to power stations. Its service contractors are the US-based Chevron, Anglo-Dutch Shell Exploration and the country’s PNOC Exploration Corp.
The Commission on Audit (COA) had earlier found that the corporate income taxes of the service contractors were deducted from the government’s 60 percent share of the proceeds from the sale of natural gas and condensates from Malampaya.
This had led to government losses amounting to P53.14 billion between 2003 and 2009 and effectively relieved the contractors from the task of paying income taxes, the COA added.
“There is a need to look into this issue and enact legislation to ensure that the government is not shortchanged in future projects and contracts entered into,” the two Rodriguezes said in their resolution.
They said the service contractors, the Department of Energy (DOE), the Bureau of Internal Revenue and the COA should be summoned to the hearing.
The audit agency had struck down the DOE’s interpretation that the contractors’ income tax was part of the 60 percent government share of the proceeds. This was tantamount to freeing the contractors from paying income taxes, it said.
Cagayan de Oro Rep. Rufus Rodriguez and Abante Mindanao party-list Rep. Maximo Rodriguez have filed a resolution asking the House energy committee to look into the issue about the division of proceeds from Malampaya.
Eastern Samar Rep. Ben Evardone also filed his own resolution for the investigation of the Malampaya project based on the COA findings.
The project involves the extraction of natural gas from waters off Palawan and its delivery to power stations. Its service contractors are the US-based Chevron, Anglo-Dutch Shell Exploration and the country’s PNOC Exploration Corp.
The Commission on Audit (COA) had earlier found that the corporate income taxes of the service contractors were deducted from the government’s 60 percent share of the proceeds from the sale of natural gas and condensates from Malampaya.
This had led to government losses amounting to P53.14 billion between 2003 and 2009 and effectively relieved the contractors from the task of paying income taxes, the COA added.
“There is a need to look into this issue and enact legislation to ensure that the government is not shortchanged in future projects and contracts entered into,” the two Rodriguezes said in their resolution.
They said the service contractors, the Department of Energy (DOE), the Bureau of Internal Revenue and the COA should be summoned to the hearing.
The audit agency had struck down the DOE’s interpretation that the contractors’ income tax was part of the 60 percent government share of the proceeds. This was tantamount to freeing the contractors from paying income taxes, it said.
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