LPGMA's Arnel Ty found guilty of unauthorized refilling of branded LPG tanks

A party-list lawmaker has been found guilty by a Malabon City court of unauthorized refilling of cooking gas cylinders belonging to giant oil companies Pilipinas Shell Petroleum, Petron and Total Gas.

In a 16-page decision released by the Department of Justice (DOJ), the Malabon Metropolitan Trial Court (MTC) Branch 55 Presiding Judge Ofelia Contreras-Soriano ruled that government prosecutors presented sufficient evidence to prove Liquefied Petroleum Gas Marketers’ Association (LPGMA) party-list Rep. Arnel Ty committed “shortselling and adulteration of petroleum and petroleum products."

Ty was found to have violated Section 2 (a) in relation to Section 3 and Section 4 of Batas Pambansa Bilang 33 or "An Act Defining and Certain Prohibited Acts Inimical to the Public Interests and National Security Involving Petroleum and/or Petroleum Products."

Ty, the owner of Republic Gas Corp (Regasco) refilling plant, was ordered to pay a fine of P50,000 with subsidiary imprisonment in case of insolvency.

Judge Soriano also ordered the cancellation of Regasco’s license to operate and the forfeiture in favor of the government of the petroleum products seized from its warehouse.

Sought for reaction, Ty said he has already elevated the matter to the Malabon Regional Trial Court, which exercises appellate jurisdiction over all cases decided by the Malabon MTC, Municipal Trial Courts, and Municipal Circuit Trial Courts.

"We already filed an appeal to the RTC," Ty told GMA News Online in a text message on Sunday.

The trial court did not give credence to Ty’s claim that the empty and underfilled branded cylinders seized from their warehouse were actually part of its marketing strategy of offering their own brand in exchange for partially consumed LPG of other brands.

The court noted that the accused failed to provide logical explanation for the presence of the filled LPG tanks of Shell, Petron and Total Gas which were likewise seized from the warehouse.

“It is highly doubtful that the volume of the confiscated filled branded LPG cylinders constitutes the number of converted clients,” read the ruling.

“No consumer in his right mind would trade off a newly-purchased or filled LPG gas cylinder for another brand which is being offered for a lesser price,” it added.

The court also noted that Ty even admitted that Regasco has no written authorization from the Department of Energy (DOE) to refill LPG for Shell, Petron, Total Gas or Caltex (now Chevron).

The court gave weight to the testimony of the prosecution's witness, National Bureau of Investigation agent Marvin de Jemi, who led a test-buy operation in Regasco’s refilling plant on February 6, 2004.

The test-buy was carried out following a letter-complaint from a lawyer requesting the conduct of an investigation of Regasco’s for alleged violation of the provisions of BP 33.

In his testimony, De Jemil recounted witnessing the actual refilling of empty LPG cylinders of Petron Gasul and Shellane by Regasco crew.

“As narrated by De Jemil, he witnessed the actual refilling of the branded empty cylinders that they presented to Regasco service crew. No evidence was presented to dispute this claim of the witness,” read the decision.

Judge Soriano also junked Ty’s argument that he could not be held criminally liable for the violation committed by the corporation since his function as company president was limited to policy making.

Ty pointed to Regasco’s plant manager, who supervises the employees and oversees the operation of the plant, as the person who should be held liable for the violation.

“Accused, despite his denial, cannot escape liability for the infraction because the by-laws of the corporation itself expressly provide that as president, he shall manage and supervise the business affairs of the corporation,” the decision read.

“Even on the assumption that he has a plant manager who allegedly supervises the employees, accused remains accountable for the infraction precisely because he was the one authorized under the by-laws to manage and supervise the business operations,” it added. —ALG, GMA News