Bantay Kurapsyon (Corruption Watch)E-News

The Office of the Ombudsman today (19 March) ordered the filing of Plunder and other criminal charges against 23 officials of the Dept. of Finance (DOF) and private individuals for defrauding the government of more than P73.76M in the form of tax credits issued from 1994 to 1996.

In an 81-page Joint Resolution, the Office of the Ombudsman ordered the filing of charges of Plunder (RA 7080) before the Sandiganbayan against Antonio Belicena, then DOF Assistant Secretary and Executive Director/ Administrator of the One-Stop Shop Inter-Agency Tax Credit and Duty Drawback Center (Center); Uldarico Andutan Jr., then Deputy Executive Director of the Center, DOF; Asuncion Magdaet, Reviewer, Center, DOF; Rowena Malonzo, Tax Specialist 1, Center, DOF; spouses Faustino and Gloria “Eng Eng” Chingkoe, Owners of Filstar Textile Industrial Corporation (FILSTAR); Grace Chingkoe, Corporate Secretary, FILSTAR; and Catalina Aranas Bautista, FILSTAR representative.

The Office also ordered the filing of Informations for 28 counts ofViolation of the Anti-Graft and Corrupt Practices Act (RA 3019) and 28 counts of Estafa through Falsification of Public Documents (Art 315 in relation to Art 171 of the Revised Penal Code) against Belicena and the Chingkoes. Other respondents, namely: Andutan; Magdaet; Jane Aranas, Cherry Gomez, Emelita Tizon, Charmelle Recoter, Annabelle Dino, Merose Tordesillas, Gemma Ortiz, Gregoria Cuento-Evangelio, all Evaluator, Center, DOF; Maximiano Acilo, Bautista, Amante Ares, Representatives, and Rodel Rodriguez, General Manager, all of FILSTAR; Pacifico Cruz, Gen. Manager, Treasury and Taxation, Pilipinas Shell Petroleum Corp.; Celso Legarda, Vice President and Gen. Mgr., Petron Corp.; and Leonardo Tanseco, Vice Pres., Logistics, Duracon Mobile Power Corp.; were also charged with Violation of RA 3019 and Art 315 in relation to Art 171 of the RPC.

It also ordered the filing of an Information for Obstruction of Apprehension and Prosecution of Criminal Offenders (Pres. Decree No. 1829) before the Manila Regional Trial Court against Dyna Simonette Dolor, Senior Tax Analyst, Center, DOF; and the spouses Chingkoe.

Investigation conducted by the Office revealed that the said public respondents in conspiracy with private respondents caused the issuance of the Tax Credit Certificates (TCC) in favor of FILSTAR even if it is not qualified to receive tax credit incentives under Executive Order No. 226 (Omnibus Investment Code of 1987).

Under EO 226, an importer, exporter, or manufacturer registered with the Board of Investments (BOI) can avail itself of tax credit incentives on raw materials and on domestic capital equipment.

A tax credit is a rebate of refund of import taxes and duties which a BOI registered enterprise, firm or manufacturer has paid beforehand to the Government on the raw materials, supplies and semi manufactured products it has earlier imported to the country that will be used in the manufacture, processing or production of its finished product which will be exported later abroad.

Under the tax credit incentive program, the Government gives back to the exporter or manufacturer the import duties and taxes it has earlier paid, not in cash, but in the form of a TCC, which the Government guarantees to honor and accept also as payment for taxes and duties and other obligations due to the National Government.