Ombudsman Conchita Carpio Morales ordered the filing of graft and estafa (fraud) charges against these DOF officials as well as other private individuals implicated in what has come to be identified as "tax credit scam” that operated from year 1993 to 1998.
Morales said in the resolution that these officials of DOF’s One Stop Shop-Inter Agency Tax Credit and Duty Drawback Center conspired with private companies in granting P202.4 million in tax credit certificates (TCCs) to Filipino Way company.
Bogus Paper company
It has been found out that Filipino Way was a paper company seemingly established by the offender/accused. Morales stated that the company had "no physical or legal existence” and its purported proprietor, Richard Noriegas, was fictitious or fake.
The DOF’s One Stop Shop-Inter Agency Tax Credit and Duty Drawback Center was established in February 1992 to process tax credit and duty drawback applications. The tax credits were offered as incentives during the Estrada administration to businesses registered with the Board of Investments (BOI). Thos who are approved will be refunded on duties and taxes.
TCCs are refund payments granted to exporters and manufacturers of BOI-registered products for export who've actually paid duties and taxes on the raw materials and supplies they used.
Under the scam, refunds were made on taxes that were never paid or tax credits granted to some firms that had ceased operations.
Scam principals
Facing charges for violation of the Anti-Graft and Corrupt Practices Act and estafa are:
- Antonio Belicena - former DOF Undersecretary
- Uldarico Andutan Jr. - former Deputy Executive Director
- Asuncion Magdaet - DOF reviewers
- Jane Aranas - DOF reviewers
- Rowena Malonzo - DOF reviewers
- Sylvialina Daguimol
- Mark Binsol
- Annabelle Diño
- Merose Tordesillas
- Charmelle Recoter
- Marife Cabadin
- Gemma Abarra
- Emelita Tizon
- Gregoria Evangelio
- Purita Napeñas
- Cherry Gomez
- Ma. Cristina Moncada
Morales also ordered to file charges against the listed officers of Filipino Way company, and its purported suppliers which are:
- Manila Bay Spinning Mills Inc.
- Filsyn Corp., Wise and Co. Inc.
- Hi-Lon Manufacturing Co. Inc.
- Dragon Textiles Mills Inc.
- Steel Asia Manufacturing Corp.
- Bush Boake Allen Philippines, Inc.
- Pilipinas Shell Petroleum Corp.
The tax credit scam case sparked from a complaint filed by the Special Presidential Task Force 156 that investigated, reviewed, and gathered evidence to prosecute irregularities at the Bureau of Internal Revenue (BIR), Bureau of Customs, and other DOF agencies.
Fake papers
According to the records provided by Ombudsman Morales, it showed that of the P202 million tax credits granted to it, Filipino Way was purported to have paid P101.8 million for its own tax liabilities and transferred P90 million to the suppliers.
To qualify themselves of the tax credits, Filipino Way submitted spurious or fake export declarations, bank credit memos, bills of lading, export sales invoices, supply agreements and deeds of assignment to show that the company was entitled to tax credits.
In March this year, Morales already resolved a tax credit scam case, dismissing thirteen (13) DOF officials, including Andutan and Belicena, for defrauding the Philippine government of P74.8 and P82 million from 1994 to 1998.
The officials were found guilty of grave misconduct and were penalized with termination, also forfeiture of retirement benefits, accessory penalties of cancelation of eligibility, and perpetual disqualification from re-employment in the government service. Belicena had already retired from the government service. That's why, he was meted out the accessory penalties.
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