Ex-DOF execs charged with graft over tax credit scam
The Office of the Ombudsman ordered Friday the filing of multiple graft charges against former officials of the One-Stop Shop Inter-Agency Tax Credit and Duty Drawback Center (OSS-Center) of the Department of Finance (DOF) in relation to a tax credit scam case in the 1990s.
Ordered indicted were former Finance Undersecretary Antonio Belicena, former deputy executive director Uldarico Andutan Jr., the officer- in- charge ( OIC) of the Textile Division Asuncion Magdaet as well as the owners and officers of Mannequin International Corp. ( MIC).
Ombudsman Conchita Carpio-Morales said the charges stemmed from their alleged involvement in the irregular issuance of tax credit certificates (TCCs).
The tax credit scheme involved the release of 45 TCCs to MIC amounting to P112.6 million between 1995 to 1998. Post audit, these were established as fraudulently obtained by means of misrepresentation and deceit by submitting fake commercial documents such as export declarations, export sales invoice, bills of lading/airway bills, and bank credit memorandum to validate non-existing export transactions.
Graft investigators said MIC was a paper corporation, created solely for the purpose of filing spurious tax credit claims with the government.
The Office of the Ombudsman found probable cause to indict Belicena and the other respondents on the ground that they failed to thoroughly evaluate and review the application and verify the authenticity of the documents
Investigators said public respondents acted with “manifest partiality, evident bad faith or gross inexcusable negligence” when they allowed the release of the TCCs to MIC and the transfer to entities which allegedly supplied raw materials to MIC’s supposed operations despite the lack of qualification to avail of the tax credit benefit.
The Office of the Ombudsman added that the existence of injury to the government is indisputable as it is quantified in the aggregate amount of the TCCs the respondents processed, evaluated, approved and issued to an ineligible firm.
Aside from Belicena, Andutan and Magdaet, also ordered charged were DOF employees Rowena Maño, Gemma Abara, Annabelle Dino, Emelita Tizon, Purita Napeñas, Charmelle Recoter, Merose Tordesilla, Gregoria Evangelio, Mark Binsol, Cherry Gomez, Sylvialina Daguimol, Manuel Rigor III, Maria Christina Moncada, Paul Senador, and Marife Cabadin.
In July 2012, the Ombudsman ordered the filing of criminal charges before the Sandiganbayan against 17 officials of the DOF and several private individuals for their involvement in the fraudulent issuances and sale of TCCs.
In March 2012, the Office of the Ombudsman said the first set of tax credit scam cases were resolved resulting in the dismissal from service of 13 Finance officials including Belicena and Andutan for defrauding the government of P82 million and P74.84 million from 1994 to 1998.