PACC probes corruption between BoC, steel firms

The Presidential Anti-Corruption Commission (PACC) is investigating allegations of corruption between several big steel manufacturers and officials of the Bureau of Customs (BoC) who may have deprived the government of billions of pesos in tax revenues, and penalties for improper import declarations.

In an interview with a morning radio program today, PACC chairman Dante Jimenez, said his office had already brought to the attention of Secretary Ramon Lopez of the Department of Trade and Industry (DTI) reports that large scale “technical smuggling” has been happening over the past ten years a due to alleged collusion between BoC officials and large steelmakers.

Aside from the smuggling allegations, there are also questions regarding the quality of steel, how this affects safety and the lives of people.

“We have brought it up to Secretary Lopez of the DTI, as they are the agency that facilitates the trading of steel,” Jimenez confirmed.

“Aside from the smuggling allegations, there are also questions regarding the quality of steel, how this affects safety and the lives of people…. these are all the subjects of an ongoing investigation by the PACC.”

Jimenez acknowledged that the case, which involves steelmakers clearing their products at the customs point of entry, despite discrepancies in the documents submitted for these items, “may be bigger than the cigarettes smuggling and tax evasion issue two years ago.”

Earlier this week, Sen. Panfilo Lacson raised the alarm on the billions of pesos the Philippines could be losing annually to tax leakages from imports. Steel contributes a significant portion of Philippine industrial imports.

Citing World Bank data, Lacson said the Philippines may have lost P32.18 billion worth of value added taxes in 2017 alone due to ‘under-declaration.’