Energy Secretary Alfonso Cusi
MANILA -- Companies that want to operate in the energy sector need to register with the Department of Energy (DOE) for it to be endorsed properly with the Securities and Exchange Commission (SEC).
This was pointed out by Energy Secretary Alfonso Cusi after the department received reports of misrepresentation by a company claiming to be a legitimate downstream oil player.
In an interview with journalists Wednesday, Cusi said oil companies should get an endorsement from DOE, through its Oil Industry Management Bureau (OIMB), to be really recognized as a legal entity.
"If they have not done this then, they are misrepresenting the company," he said.
"This is also to protect the public," he added.
The DOE, in a statement, said "it is an acceptable industry practice for legitimate downstream oil players to source their funds from loans duly approved by banks and other recognized lending institutions, or from equity contributions duly notified to and approved by the SEC and/or the Department of Trade and Industry."
"Therefore, other funding practices, aside from the foregoing, especially those that are inviting investments through the promise of unbelievable profit returns, should be fully investigated to prevent fraudulent practices, such as those used in “ponzi-like” schemes," it added. (PNA)
