Customs payola: 1147 B?

When multiplied by 730 days or two years, the daily payola given by importers through brokers or fixers to the Bureau of Customs (BOC) for the accelerated release of their containerized shipments at Manila’s waterfront is enough to wipe out the national government’s current budget deficit of

1147 billion. Senator Panfilo M. Lacson, a former Philippine National Police (PNP) chief and chairman of the Senate Public Order and Dangerous Drugs Committee, made this calculation after the first of a series of public hearings last

Monday by the Senate Blue Ribbon on questionable shipments, including the deadly 600 kilos of illegal drugs such as shabu, are allowed to leave the waterfront.

Focus of the public hearing presided by Sen. Richard J. Gordon was how a 600-kilo shipment of “shabu” embedded in a consolidated importation from China was given preferred treatment although shipments from mainland China are supposed to be automatically examined thoroughly and not allowed to pass through the “green lane.”

The Gordon committee resumes its public hearing on Aug. 8.

Lacson said he could only accept that there is sweeping reform at the customs bureau when the sharing among preferred customs officials and personnel of the collected payola during the traditional Friday ‘3 o’clock’ habit is stopped.

He said he would raise this issue to a possible new customs commissioner and when the answer is a mere twist of the lips, “walang pagasa mareporma (there is no hope that the customs bureau would be reformed).”

Lacson said he has had talks with customs brokers on the payment of payola and sharing of payola among customs officials and that the average bribe amount is 127,000 to 130,000 per container van per day.

At a low end at 127,000 per container and at the arrival of 10,000 container vans per day as mentioned by BOC Commissioner Nicanor A. Faeldon during the hearing, Lacson said the total amount is 1270 million a day.

“Tara (payola) lang iyan. Pag multiply mo ng 365 (days a year), easily that’s 198.55 billion in payola alone,” he added. (That is payola alone. When multiplied by 365 days, that is 198.55 billion in payola alone.)

Multiply 198.55 billion in two years, the total is 1147 billion which is enough to wipe out the current budget deficit, he explained.

The 600 kilos of shabu are contained in five metal cylinders in wooden crates last May that were part of a consolidated shipment from Xiamen, China. The shipment was brought in by EMT Trading described as a consignee for hire whose owner is a young lady teacher.

Although there is a customs directive that shipments coming from China should be automatically assigned to the “red lane” for a strict examination, the EMT shipment was mysteriously assigned to the “green lane” by the BOC Risk Management Office (RMO).

But from March 31 to May 29, EMT was able to bring in 534 container vans of which 438 vans were assigned to the green lane, Lacson pointed out.

Lacson said the Philippine Drug Enforcement Agency (PDEA) had claimed that three shabu shipments of about 600 kilos each had slipped through the Manila waterfront earlier.

Multiplied by three, the total weight of shabu smuggled through the waterfront is easily 1.8 tons, he added.

Senators were surprised to learn last Monday that the waterfront is rife with consignees for hire.

Solons want Faeldon’s head Ranking congressmen are asking for the head of Customs Commissioner Faeldon, whose disastrous attempt to outdo the Philippine Drug Enforcement Agency (PDEA) in an operation involving 16.4 billion worth of “shabu” came to light at yesterday’s House inquiry.

The House probe was conducted by the Committee on Dangerous Drugs chaired by Surigao del Norte 2nd District Rep. Robert Ace Barbers.

“Well, I support the call of resignation na sinabi kanina ni (made by) Chairman Ace Barbers,” said House Speaker Pantaleon Alvarez on the sidelines of the hearing.

“Dahil po kung ako ang nasa posisyon na iyon ay talaga namang kung meron pa akong konting hiya na natitira ay talagang magreresign ako (Because if I was that position and had some shame left, I would resign),” the Speaker said, referring to Faeldon.

“Di lang kayo dapat managot, dapat mag-resign na kayo eh (Not only should you be held responsible, you should also resign). You have a few hours to think. I'm waiting for you to submit your resignation,” Barbers said during the hearing.

A former Marine captain, Faeldon assumed the BOC seat on June 30, 2016. He was handpicked by President Rodrigo Duterte.

The official's troubles began in late May this year when some 16.4 billion worth of methamphetamine hydrochloride or shabu was slipped passed the BOC through its automated classification system. It happened supposedly due to a lapse in judgment of the BOC’s Risk Management Office (RMO) chief, lawyer Larribert Hilario. Congressmen believe that Hilario is a mere scapegoat for Faeldon.

The shipment of the 600 kilos of drugs, hidden inside five crates of metal cylinders and declared as “kitchen equipment,” ended up at HongFei Logistics warehouse in Valenzuela City.

The BOC only learned of the presence of the contraband after the fact thanks to a tip from Chinese intelligence authorities, prompting Faeldon to call PDEA for a joint operation of sorts on May 26.

Know-it-all?

Responding to the area were PDEA members headed by National Capital Region (NCR) Director Wilkins Villanueva. From there, it went downhill as Faeldon and Villanueva allegedly butted heads on what to do with the billions worth of shabu.

The PDEA official told lawmakers that what should have been conducted in such instance was a “controlled delivery operation,” which entailed the delivery of all five crates to an unnamed target by the authorities. Villanueva described it as a “high-level” operation.

Faeldon, however, wanted four crates to remain at the warehouse supposedly to serve as evidence against warehouse owner Richard Tan, whom he wanted charged. Villanueva, an anti-drug agent for 16 years, said that delivering just one crate for sting won’t do.

“Ang problema dito, kung anti-drug operation, makinig kayo sa PDEA. Nagmamagaling kasi kayo, wala naman kayong alam (The problem here is, if it’s a drug operation, you should listen to PDEA. You're pretending to be experts, yet you know nothing),” a visibly exasperated Villanueva said during the probe

“Bakit hindi kayo nakinig? Wala dapat kayong kailangang saguting (Why didn’t you listen to me? You shouldn't have to answer anything),” he told Faeldon, who sat just a few meters to his left.

In the end, it was the BOC chief who had his way, with Villanueva saying: “We insisted (to not leave any crate) but we failed to convince him (Faeldon)... it’s the Customs’ case; it’s not our case. We can only advise them.”

In response, Faeldon confirmed Villanueva's story, but assailed PDEA for supposedly not wanting to charge Tan.

“I insisted that the owner be treated as a suspect. Kaya ako nagalit. Sabi ko lahat ng ginagawa natin dito totoo (That’s why I got angry. I said everything we're doing here is for the truth),” he said.

Incriminating evidence

Meanwhile, BOC officials and the National Bureau of Investigation (NBI) may be charged for possession of illegal drugs should they continue to resist turning over to the 500 kilos of shabu seized in Valenzuela to the PDEA.

Senate Majority Leader Vicente Sotto III reiterated on Tuesday that the BOC violated the procedures of the Comprehensive Dangerous Drugs Act or the Republic Act 9165 for asking the NBI to keep in its custody majority of the 600 kilos of shabu worth 16.4 billion. Only 100 kilograms were sent to the PDEA.

“Talagang violation of the law... Kung madumi ang isip ng PDEA, ’yung dating nila dun, nakabulatlat yung mga droga dun, pwede silang kasuhan lahat ng possession (It was indeed a violation of the law. If the PDEA thought maliciously, and the drugs were displayed there, all of them can be charged with possession of illegal drugs),” he said. (With reports from Ellson A. Quismorio and Vanne Elaine P. Terrazola)