Friday, August 22, 2008 Reyes hits Meralco’s refusal to submit books for audit
“NO ONE is above the law here, and I don’t have to convince anybody since there is a Supreme Court (SC) decision.”
Thus said Energy Secretary Angelo Reyes in reaction to the refusal of distribution giant Manila Electric Company (Meralco) to submit its books for audit at the Commission on Audit (COA).
“There was a Supreme Court decision. The decision is very clear. There is no reason why Meralco should refuse the audit from COA,” Reyes said.
According to him, the mere fact that the power firm was given franchise by the government to operate does not preclude them from being subjected to any audit to be conducted by the government especially since the issue involves public interest.
He said only the oil industry which is a deregulated market may be spared from any regulations but in the case of Meralco, they are still under the jurisdiction of the Energy Regulatory Commission (ERC).
“Oil is deregulated so there is no regulator. Power is regulated and the regulator is the ERC. COA can audit a utility firm since it is regulated. See, there is a distinction, so Meralco should be amenable to the audit to know if rates are properly fixed,” Reyes further said.
In a letter to ERC chairperson Zenaida Cruz-Ducut, Monico Jacob, head of regulatory management office of Meralco, said COA has no jurisdiction over the books of private corporations.
“Nevertheless, we would like to respectfully bring to your attention that the mandate and authority of COA is limited to the audit of books, records and accounts of all government entities,” Jacob said.
He asserted that COA’s authority is not extended to private firms like Meralco.
At the same time, Jacob cited the 1987 Philippine Constitution which expressly limits the power, authority and duty of COA to the examination, audit and settlement of government firms.
He said the government will only be “unnecessarily” utilizing its resources outside the scope of its authority.
“Thus, as a private corporation, we are alarmed by the sudden request of COA to conduct an audit on the books and records of our company,” he said.
Meralco, according to Jacob, has always been transparent in its dealings and has always welcomed the examination or audit of its transactions as long it is within the bounds of the law. (MSN/Sunnex)
