Ombudsman orders dismissal of 14 DOF execs in tax scam

MANILA, Philippines - Ombudsman Conchita Carpio-Morales yesterday ordered the dismissal from government service of 13 officials of the Department of Finance (DOF) for defrauding the government of more than P82 million through a series of tax credit scams from 1994 to 1998.

In a ruling, Morales found former undersecretary Antonio Belicena; former deputy administrator Uldarico Andutan Jr.; reviewers Rowena Malonzo and Asuncion Magdaet; evaluators Gemma Ortiz-Abarra, Annabelle Dio, Emelita Tizon, Purita Napenas, Charmelle Recoter, Melrose Tordesillas, Gregoria Cuento-Evangelio, Mark Binsol, Cherry Gomez and Sylviana Daguimol, guilty of grave misconduct.

They were meted the penalty of dismissal from the service with accessory penalties of cancellation of eligibility, forfeiture of retirement benefits, and perpetual disqualification from re-employment in the government service.

Since Belicena, then officer-in-charge of the so-called One-Stop Shop Inter-Agency Tax Credit and Duty Drawback Center, has already retired from government service, only the accessory penalties would apply to him.

The decision stemmed from the complaint of Special Presidential Task Force 156 alleging anomalous issuances of 110 Tax Credit Certificates (TCCs) to Integrated Multi Cotton Mills, Inc. (IMCMI) by the DOF amounting to P82,519,235.

Evidence on record showed that the TCCs which were obtained by IMCMI using fake documents were subsequently transferred to Wise & Co., Bush Boake Allen Phils., Filsyn Corp., Hi-Lon Manufacturing Co., Canlubang Spinning Mills, Pacific Mills, Inc., Golden Dragon Textile Mills, Inc., First Unity Textile, Padoson Stainless Steel, Pacific Mills and Pilipinas Shell Petroleum Corp.

Morales also ordered the filing of criminal charges against former officials of the center for the anomalous issuance of TCCs amounting to a total of P74.84 million before the Sandiganbayan.

In separate resolutions, she ordered the filing of 20 counts of violation of Section 3 (e) of Republic Act 3019 or the Anti-Graft and Corrupt Practices Act and 20 counts of estafa through falsification of official/public documents against Belicena and Andutan.

Former officer-in-charge of the Net Local Content/ Net Value Equivalent and Domestic Capital Equipment Raul de Vera was ordered charged with 19 counts each of the same offenses; former senior tax specialist Brandy Marzan, four counts each; senior tax specialist Rosanna Diala, 14 counts each; tax specialist/evaluator Cuento-Evangelio, one count each; comptroller Reynaldo Maghirang, three counts each; reviewer Magdaet, one count each; and evaluator Napenas, one count each.

Also ordered charged were private respondents Honorato Lacsina as president of Liberty Transport Inc.; Joseph Cabotaje; Ramon Rodriguez as president of R.A. Rodriguez Bus Line; Candido Potenciano as president of Batangas Laguna Tayabas Bus Co.; Joselito Tengco as manager of Baliwag Transit, Inc.; Henry Tumala as president of Lamborghini Transit, Inc.; and Charles Uy, Ma Uy Yu, Yu Chin Tong and Emerito Guballa as officers and employees of Nikko Textile Mills, Inc. 

The respondents were ordered charged specifically for the issuance of 20 TCCs amounting to P74.84 million using spurious documents: P17.3 million to the BLTB; P9.4 million to Baliwag Transit; P19.092 million to Rodriguez Bus Line; P12.05 million to Liberty Transport; P14.6 million to Lamborghini Transit, and P2.4 million to Nikko Textile.

The Center was created under Administrative Order 226 dated Feb. 7, 1992 primarily to process tax credit and duty drawback applications as incentives to BOI-registered enterprises.

The incentives consist of government refund payments on duties and taxes.

Morales referred to the Office of the Special Prosecutor (OSP) for appropriate action the motion to include private respondent Felix Chingkoe, president of Diamond Knitting Corp., in the plunder charges earlier filed against several DOF officials and other officials of the Chingkoe group of companies.

Since the case is already undergoing trial before the Sandiganbayan, the Office of the Ombudsman said “this Office is no longer in a position to act on the aforesaid motion given the fact that the Sandiganbayan has already acquired jurisdiction over the said cases.”