Chevron issues clarification regarding allegations of monopolies and combinations in restraint of trade

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Chevron issues clarification regarding allegations of monopolies and combinations in restraint of trade

August 06, 2014

(Makati City, Philippines, August 6, 2014) – Chevron Philippines Inc. would like to clarify the inaccuracies in a news article which appeared that a Pasay Court has found Chevron and its former directors engaged in illegal monopolies and combinations in restraint of trade.

Chevron is studying its legal options to obtain redress for reputational damage. 

It should be noted that the case for illegal monopoly filed by Petroleum Distributors and Services Corporation (PDSC), a former dealer of Chevron, is still at the preliminary stage of the proceedings before the Pasay City Regional Trial Court. In addition, pending before the Pasay Court are Chevron’s Motion for Reconsideration of the Order finding probable cause, Motion for Voluntary Inhibition and Motion to Quash Information, all of which must be resolved first before trial begins and any discussion on liability can be made.

It is regrettable that the news report did not fairly and accurately reflect the proceedings before the Pasay Court.  The article misrepresented that the Court already made findings of liability against Chevron and its former directors when it only cited a portion of the May 16 Order which narrates a part of the Prosecutor’s earlier resolution. 

The supposed findings of the Court are a partial narration of facts by the Court as it cited what the Pasay Prosecutor said earlier in its Resolution.  In fact, in its May 16 Order, the Court precisely said it needs to conduct a trial to determine the truth behind the allegations. 

The Pasay City Prosecutor’s Resolution cited in the May 16 Order is currently pending review by the Department of Justice. 

It is also worth pointing out that a similar, if not identical complaint, lodged by PDSC against Chevron and its former directors based on exactly the same facts that were used as basis for the filing of the Pasay case was earlier dismissed by the Makati Prosecutor’s Office.  

The Office of the Secretary of the Department of Justice affirmed the Resolution of the Makati City Prosecutor’s Office dismissing the case against the former Chevron directors. It reviewed all the allegations made by PDSC against former Chevron directors, but found no basis to charge them for monopolies and combinations in restraint of trade. 

The complaint in Pasay City was filed after PDSC’s initial attempt to hold Chevron liable under the same facts was dismissed by the Makati Prosecutor’s Office.  It is unfortunate that the Pasay Prosecutor’s Office came out with a different finding even after the Department of Justice has found no basis to charge Chevron and its former directors with monopolies and combinations in restraint of trade. This erroneous finding is now under review with the Department of Justice. Consistent with the finding of the Department of Justice that there is no case against Chevron and its former directors, the latter are seeking the dismissal of the Pasay case. Chevron continues to trust the Philippine judicial system and chooses to present its defense in that forum.  It will, however, not stand idly if its reputation and the goodwill it has built for close to 100 years are sullied by irresponsible and malicious writings masquerading as news reports.

Finally, it should be emphasized that Chevron’s former directors who have yet to post bail are not evading arrest as alleged in several news reports.

The nine former directors of Chevron who have been implicated did not leave the Philippines because of the cases filed by PDSC. These personnel have long been out of the country prior to the filing of PDSC’s baseless suits. 

The Pasay City Prosecutor’s Resolution cited in the May 16 Order is currently pending review by the Department of Justice. Chevron will provide relevant updates on the case as more information becomes available.


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