by Myrna Velasco July
26, 2016
The income tax amount
being pursued by the Philippine government, through the Commission on Audit
(COA), against the Malampaya consortium has already swelled to a whopping
P130.34 billion.
According to Department
of Energy (DOE) Spokesperson Wimpy Fuentebella, the additional amount lodged,
based on COA documents, had been R77.2 billion.
It was further gathered
from sources at the State audit agency that the amount had been on top of the
initial P53.14 billion being demanded prior to the filing of an arbitration
case by the Service Contract 38 consortium before the International Center for
Settlement of Investment Disputes (ICSID).
The additional P77.2
billion had just been reckoned from years 2010 to 2014 operation of the
Malampaya gas field. The SC 38 consortium comprises of Shell Philippines
Exploration B.V. (SPEX), Chevron Malampaya LLC and state-owned Philippine
National Oil Company-Exploration Corporation.
In regard to the
international arbitration, Fuentebella explained that the ‘conclusion’ of the
government “is to have a unified stand between and among all the agencies
concerned on how to approach the proceedings.”
He added that the COA
and Department of Finance (DOF) have respective positions on the matter –
generally to go after the claimed income tax components and for it not to be
integrated in the 60-percent royalty share of the Philippine government in the
Malampaya gas field project.
The DOE, for its part,
has to be cautious on the chilling effect of such process on future investment
prospects in the upstream segment of the country’s oil and gas sector.
“DOF has its own stand,
and also independent COA… us at the DOE, we also have our stand. If the issues
and discussions are just confined in the Philippines, we would just have
performed our different mandates under the law because we have checks and
balances in our system… but when you bring it to international arbitration,
then we should have a unified stand,” he stressed.
Fuentebella expounded
that the next step will be for all different concerned agencies to ‘sit down
and discuss’ whatever common stand and legal strategy the Philippines must take
in the arbitration case. The case was also referred to President Rodrigo
Duterte for his guidance.
The energy department,
Fuentebella said though, is still hopeful that the parties could arrive at
“win-win” settlement at the arbitration proceedings.
On the part of the
Malampaya developers, they have been strongly invoking “sanctity of contracts;”
and that such must be upheld by the government as this is also sanctioned by
the Philippine Constitution.
On this, Fuentebella
noted “we can also invoke that (sanctity of contracts), but the problem is how
do you interpret the terms of the contract?”
Relative to the
arbitration case, it was noted that the Philippine government has challenged
the jurisdiction of the ICC tribunal. Hearings are slated November this year.
No comments:
Post a Comment