Malicious and libelous allegations

Dear Mr. Belmonte,

We are writing to react to the series of negative write-ups against Mighty Corp. that appeared in Ms. Mary Ann Reyes’ column “Hidden Agenda” published in The Philippine STAR last Nov. 10 and 24.

For 68 years now, our company has concentrated all its efforts in manufacturing quality products that cater to the low-priced market. All this time, we have been content in holding a small share of the market, because our concept of gain is not only measured in peso signs but also in the way we uphold our nationalistic identity.

Which is why it saddens us that these past few months, we have been under attack by news and column articles which claim that we are involved in illicit trade practices such as technical smuggling and tax evasion. These are very serious allegations that are not only malicious but libelous as well.

It is disheartening to know that a small Filipino company like us cannot run an honest business without being bombarded with baseless accusations and controversy. Why are we being portrayed by the media as guilty of technical smuggling and tax evasion when concerned government agencies like the Bureau of Customs (BOC) and Bureau of Internal Revenue (BIR) have not even filed a legal case against us? Why are we being singled out in these so-called investigations when we are not the only manufacturers of low-priced cigarettes? More importantly, why is a humble company that promotes the Filipino brand being projected to the public as a greedy industry player when our current market share is nowhere near threatening to known tobacco giants?

Ms. Reyes’ column has repeatedly mentioned that “accusations that Mighty Corp. has not been paying the proper taxes are credible since its products are sold at a very cheap and artificial price.” This is not only an ignorant claim but a logical fallacy, since it does not follow that cheap prices indicate tax evasion.

The fact of the matter, Mr. Belmonte, is that we can afford to impose low prices on our products since we are an entirely local and fully integrated company that neither remits royalty to foreign brands nor employs foreign consultants. Our production and marketing costs are low, which is why we see no need for us to sell our goods at sky-high prices, even under the mandates of the sin tax law and its complements. Besides, if we are to be consistent with our national bias, then it is our duty to be able to sell cigarettes that the masses can afford.

Ms. Reyes’ column has also mentioned that there are discrepancies between the data from the BOC and the export data we submitted to the BIR. If such discrepancies exist, why have we not received a complaint from either agency? Customs authorities have been closely monitoring our operations, reporting, and compliance, in the same way that the BIR has been vigilant in monitoring and auditing taxes paid to them. Under the law, good faith is presumed and bad faith is not. Until these government offices come forward with a complaint, our operations and activities are presumed regular. We find it highly unfair that Ms. Reyes’ column continues to imply that we are guilty without undergoing due process.

The other figures Ms. Reyes has released in her column – our so-called losses, the prices of our import materials – have only come from “reports” and private entities, so far. In all these months of publicly discriminating Mighty Corp., our critics have yet to back their claims with official documents from concerned government agencies. Show us documents, please.

The media has been pressuring us to answer to all these baseless and senseless speculations when the burden of proof is not upon us but upon our critics. As a Filipino company that upholds nationalistic values, we are here to answer only to the Philippine government and not the demolition job orchestrated by industry bullies.

We sincerely hope that we have enlightened you and Ms. Reyes through this letter. Thank you for accommodating our side on the issue in your widely read newspaper.

Retired Judge Oscar P. Barrientos

Executive vice president and spokesman

Mighty Corp.