Government lost ₱143.8 B in revenues to BOC corruption – House report
The government lost ₱143.8 billion in revenues from July, 2016 to July, 2017 due to massive graft and corruption activities at the Bureau of Customs (BOC) while corrupt Customs officials amassed over
₱17.7 billion in grease money over the same period.
This was revealed by the House Committee on Ways and Means in its 82-page report after conducting an inquiry into the smuggling of 16.4-billion high grade shabu that exposed the mas-
sive corruption, the creative acts of bribery and the inefficiency at the bureau.
As a result, the committee has asked the Department of Justice (DOJ) and the Office of the Ombudsman to conduct an investigation for the filing of possible criminal and administrative charges against former Customs Commissioner Nicanor Faeldon and 47 other Bureau of Customs men and private individuals.
“In this regard, it is not surprising that the Bureau missed its collection target by 110B during the first seven months of 2017. It being able to collect only 1246.98B of its 1257 billion target,” the committee report said.
The 75-man House body also recommended the abolition of the BOC to pave the way for the creation of two separate agencies that would divide the main mandate of the customs bureau.
House panel chair Quirino Rep. Dakila Carlo Cua said they propose the creation of the Bureau of Security Control that will exercise police authority over all ports, port security and communication, inspection and monitoring of cargoes and border control, among others.
On the other hand, the assessment and collection duties and the adoption of modern customs control systems will be assigned to the proposed Bureau of Customs Services.
The House panel is convinced that Faeldon and key BOC personnel he assigned to sensitive posts in the bureau “conspired” with unscrupulous importers and customs brokers to deprive government of muchneeded revenues.
Probe The report said Faeldon should be investigated for at least nine offenses, including violation of Republic Act 9165 (Dangerous Drugs Act) for delaying and bungling the prosecution of drug cases, graft, violation of the Customs Code and gross neglect of duty.
Also sought to be investigated were Director Neil Anthony Estrella, Joel Pinawin, Deputy Commissioners Edward James Dy-Buco, Teddy Raval, Natalio Ecarma and Gerardo Gambala; lawyer Roy Lawagan, James Layug, Alvin Ebreo, Director Milo Maestrecampo, lawyers Vincent Phillip Maronilla, Larribert Hilario, Mary Grace Malabed, Lorna Rosario, Alexander Yap Venutra, Althea Acas, Mandy Therese Anderson and Jelina Magsuci.
Manyofthoseimplicated in criminal and administrative acts were also blamed for failing to follow standard operating procedures under RA 9165 thereby jeopardizing the prosecution of those behind the shabu importation.
The panel also sought the investigation of private individuals involved in the shabu shipment, Among them were customs fixer Mark Ruben Taguba, Teejay Marcellana and Eirene Mae Tatad as well as Chen I Men, Juhn Ming Jyun, Richard Tan, Li GuangFeng, Kenneth Dong and Fidel Anoche Dee, who is currently detained.
Revoked The recommendation to include Taguba among those to be investigated means his parliamentary immunity has been revoked. Taguba had previously been granted parliamentary immunity in exchange for his testimony to expose the “tara” system and other bribery activities at the BOC.
Taguba mentioned that some of the personalities collecting grease money at the bureau were representing the Davao group. Taguba explained how he and certain BOC personnel were “able to completely manipulate the entire selectivity system” in the bureau.
Taguba and Marcellana were tagged for facilitating the illegal importation of the huge shabu shipment by EMT Trading, allegedly owned by Tatad.
Despite a newly-formed company, EMT was able to hold 652 importation transactions with the BOC over a period of less than six months. It was also able to lower its assessed duties and taxes to between 138,000 and 142,000 from the 180,000 to 1120,000 benchmark.