Newscast: The World Tonight - Broadcast date: 02/06/97
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Copyright © 1996, ABS-CBN Broadcasting Corp.

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All set for full Oil Deregulation on February 8

OIL COMPANIES are now ready for the full implementation of the oil deregulation law on Saturday. The Energy Regulatory Board (ERB), announces 30 new companies have been given approval to engage in the soon-to-be open and unregulated oil business.

After 20 years of government control, politics will no longer come to play in determining fuel prices. It will be a new ballgame when full deregulation is implemented on Saturday.

The highly unpopular ERB will take a back seat. Oil companies will have full control over petroleum prices. Government subsidies averaging 14 centavos per liter will be removed. Oil firms assure the average increase in fuel prices on Saturday, will not exceed 14 centavos, the amount of subsidy that will be withdrawn.

Despite fears of an increase in prices, oil companies believe prices will go down. Local prices are based on the Singapore Posted (SPP) Prices, the benchmark of oil prices in Asia. The SPP is going down.

Pilipinas Shell assures they will offer reasonable prices. Faced with competition from 30 new players, foreign and local, Shell says oil companies don't have a choice.

Caltex will renovate their 900 service stations nationwide within three years to attract more customers. The government expects competition will eventually result in better service and lower prices of petroleum products.

But four opposition congressmen together with leftist groups, are trying a last ditch attempt to stop Saturday's full deregulation. They have petitioned the supreme court for a temporary restraining order. The petitioners are led by Congressmen Edcel Lagman, Wigberto Tanada, Joker Arroyo and Enrique Garcia.

The Freedom from Debt Coalition, Human Rights Foundation and the Free Legal Assistance Group, are also signatories. They are asking the Supreme Court to declare Republic Act 8180 deregulating the oil industry, as unconstitutional. They say the law gives oil companies the power to dictate oil prices.

But the Senate energy committee opposes a postponement. Committee chairman Senator Freddie Webb, says a delay in oil deregulation will scare off investors.

Energy Undersecretary Mariano Salazar, told the committee what Congress must do is improve the oil deregulation law, not delay its implementation to the year 2000.

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Shell gas dealers accused of hoarding

LESS THAN four days away from the scheduled full deregulation of the oil industry, several Shell stations simply ran out of premium gasoline. Premium gas is expected to increase by 40 centavos when the deregulation takes full effect Saturday.

Shell officials deny their dealers have resorted to hoarding. Shell's Luke Esteban says the shortage was caused by a malfunction in the pipeline that brings fuel from Batangas to Pandacan in Manila.

Afterall, the pipeline is over 30 years old. This malfunction prevented the Pandacan depot from delivering premium gas to various Shell gas stations in Metro Manila, from 10 am to 7 pm yesterday.

A fire that hit a nearby community only worsened the situation. The Batangas-Manila pipeline resumed operations at 2:30 this morning. And Esteban says everything's back to normal.

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No mass in Jolo churches until Bishop's murder is solved

CHURCH officials in Jolo will stop holding mass and suspend classes until the murder of Bishop Benjamin de Jesus is solved.

The protest is being organized by the Oblates of Mary Immaculate, the religious congregation of the late Bishop De Jesus. But a spokesman for the religious order says they will not pull out the remaining priests they have in Sulu.

President Ramos has asked ARMM Governor Nur Misuari and the Moro National Liberation Front (MNLF), to help the police determine the possible involvement of Muslim extremists in the murder.

Two witnesses in the killing bolster police findings that Bishop De Jesus was killed by bandits identified with the Abu Sayyaf. The rains started falling in Jolo, only after their well-loved priest, Bishop Ben de Jesus was shot dead. But the faithful say the heavens mourn not for the Bishop but for those who killed him.

In their homiles, priests in Jolo consistently remind parishioners to remain calm and learn to forgive the Bishop's killers. But the presence of heavily armed soldiers at the Bishop's Palace defy the position of the church over the Bishop's killing.

Government troopers would not allow the members of the church to leave the compound unescorted.

But the Vicariate Chancellor Brother Alfredo Epiz, says it is not their safety they're worried about. They worry more for the people of Jolo because of the worsening criminality in the area. They believe the Bishop was killed by bandits who are associated with Muslim extremists.

The police tend to suspect the same. Moreso now, after two witnesses came forward to testify. They pointed to a brother of Amman and Julius Hayudini as one of the triggermen.

The Hayudinis helped form the Abu Sayyaf and are notorious for their involvement in drugs. They were arrested last month after they extorted money from the Sulu Consumers Cooperative, where Bishop De Jesus was a spiritual adviser. Fearing for their lives some officials of the cooperative left Jolo this morning.

Relatives of the Hayudinis volunteered to be tested for powder burns. But a negative finding, police say, will not necessarily clear their name.

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PNP initiates its own probe against 3 police generals

THE PHILIPPINE National Police has begun looking into the alleged involvement of police generals in the Kuratong Solido robbery group.

Chief Superintendent Reynaldo Wycoco, one of the generals implicated, has gone on leave. But it's their accusers who appear to be in bigger trouble. Police Director Leandro Mendoza and Wycoco today appeared before a investigating panel in Camp Crame. Chief Superintendent Hermogenes Ebdane is out of the country.

Wycoco, who was just appointed chief of Task Force Dragon, the PNP's anti-kidnapping unit, went on a 15-day leave to give the investigators a free hand. It was only last week that Chief Inspector Renato Laurenaria was a hero for busting the Kuratong Solido Group, the suspect in last year's P50 million-Miladay Jewelry Store robbery.

Now, he and six other officers are facing summary dismissal proceedings for extortion. Laurenaria and his men are also under investigation for what now seems like an unauthorized operation against the Kuratong Solido Group. Laurenaria had been put on floating status because he was still under investigation for extortion.

Laurenaria's intelligence asset, agent "Joy" says a Kuratong member now in police custody can corroborate their allegations against the police generals. The Kuratong Gang was supposedly being used to raise money for Vice President Joseph Estrada's campaign in 1998.

Joel Arnan admits agent "Joy" is a cousin. But he denies he heads the Kuratong Solido Group. He says it was the Waray-Ilonggo Gang, led by a certain "Toto Stainless" who pulled the Miladay heist. The vice president has already denied the allegations. Other people implicated in the Kuratong today issued similar denials.

Meanwhile, the Senate defense committee will summon agent "Joy" to find out if her allegations have basis.

PNP officials and Chief Inspector Laurenaria appeared before the committee today. Committee chairman Senator Orlando Mercado, says he will inhibit himself from the senate inquiry if Vice President Estrada is linked to the issue. Mercado is president of Estrada's party, the Partidong Masang Pilipino.

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Life's paradox: a wooden trophy for an environment award

PRESIDENT Ramos was irritated at what turned out to be a paradox in today's ceremony for environmental awards.

Ramos was giving recognition to mining companies that have contributed to environmental awareness when he noticed that the trophies were made of wood.

The President scolded the organizers for ignoring his order to save the trees and not to use wood in making trophies. The trophies were not just environmentally unfriendly. Ramos also found them oversized.

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SC sets aside prosecution findings on Lucio Tan's tax evasion case; orders the conduct of new preliminary investigation

FINALLY after several setbacks, the government's P25 billion tax evasion case against beer and tobacco tycoon Lucio Tan takes a step forward.

This, after the Supreme Court set aside the prosecution's initial findings on Tan's alleged tax offenses committed from 1991 to 1993.

The high court instead ordered a new preliminary investigation on the case to be conducted by a new team of prosecutors. But the high court dismissed government's motion for reconsideration on a previous decision blocking government from prosecuting Tan due to the BIR's failure to make a detailed assessment of his liabilities.

Still BIR Commissioner Liwayway Vinzons Chato, is elated over the deicision. She is confident the criminal case against Tan will result in his conviction.

Meanwhile, the International Monetary Fund will start consultations with government tomorrow to review the country's progress in implementing key economic reforms. The review is expected to last two weeks, afterwhich a report will be made to the IMF executive board. It will conduct the last review of the three-year extended fund facility program expected to end middle of this year. The final review paves the way for country's exit from IMF conditional lending.

Three major issues still remain which are needed to graduate from the IMF program. The Comprehensive Tax Reform Package (CTRP), deregulation of the oil industry and the prompt settlement of the P2.4 billion obligations to the three oil refiners.

Still in business, tariffs for imported sugar are set to be increased. Trade and Industry Secretary and NEDA's tariff and related matters chairman Cesar Bautista, says government can increase tariffs to up to 133 percent to curb the increase in sugar imports and glut in the market. He says the committee is submitting a recommendation to the President next week.

Bautista clarifies earlier reports the DTI is against any increase because it will go against international trade pacts. He says an international trade covenant of the World Trade Organization (WTO), allows a government to rescue any sector battered by unfair competition.

Finally, one of the country's largest banks, Philippine Commercial International Bank, will increase its capital by as much as 30 percent to cope with the more competitive environment.

PCI Bank President Rafael Buenaventura, says they intend to raise their capital by P3 billion to P5 billion through a stock rights offering this year. The proceeds will be used to respond to increased loan demands and infrastructure projects.

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