Chingkoes transferring business to Canada -- prosecutors

The wife of Faustino Chingkoe, the alleged main culprit in the multibillion-peso tax credit scam, is laying the groundwork for the transfer of the Chingkoe family business from the Philippines to Canada, prosecutors said yesterday.

Chief Special Prosecutor Dennis Villa Ignacio said Gloria Chingkoe was conducting business transactions in the Philippines that indicate their family will finally relocate to Canada. Except for Faustino, the rest of the family now reside in Canada.

"She is the one dealing with all of these (transactions). That is why we have been saying that Faustino is a flight risk and will no longer come back," Villa Ignacio said. Faustino was allowed by the Sandiganbayan to travel to the United States, Canada and Hong Kong for a month until April 16.

Prosecutors have opposed the travel request, but the fourth division of the graft court granted Faustino’s request and allowed him to post a P2.5 million travel bond. The justices rejected the government lawyers’ arguments, saying Faustino had a good travel record with them.

Villa Ignacio argued that Faustino holds four passports – Canadian, Philippine, Fijian and Korean. The court remained unconvinced, saying the prosecution arguments remain unsubstantiated.

Villa Ignacio said the prosecution will vigorously push for the extradition of Gloria to the Philippines, if only to obtain justice for the government, which lost P5.3 billion in revenues in the tax scam, P3 billion of which involved 11 companies owned by the Chingkoes.

Meanwhile, the Asian Pacific Post reported that the Chingkoes fled to Richmond, British Columbia – a known safe haven for some of Asia’s most wanted persons – and spent "hundreds of thousands of dollars" buying up real estate there.

In its March 24 to April 6 issue, the newspaper said that, as per investigation, the Chingkoe family was "residing at Tolmie street in Richmond in a house worth over Canadian $500,000."

"The Chingkoe couple had also invested in several other properties on Westminster Highway and on Alderbridge Way in Richmond, according to property records," the newspaper reported.

Faustino and Gloria Chingkoe and several finance officials were named as defendants in 83 graft cases filed by the government before the Sandiganbayan for their alleged connivance in using spurious tax credit certificates to deprive the government of taxes.

The Chingkoes are wanted for 83 cases of violations of the Philippines Anti-Graft and Corrupt Practices Act and for falsification of public documents.

Some unscrupulous Filipino companies allegedly submitted spurious documents to claim the tax credits, an incentive enjoyed by exporters, particularly garment companies.

Exporters under the tax credit scheme may use the credits to offset payment of taxes on imported raw materials and supplies, and for corporate income taxes. They are also allowed to transfer these to any company in exchange for goods and services. 

The Chingkoe group firms that allegedly benefited from the tax credit certificates are Advance Color System; Alliance Thread Inc.; Allstar Spinning Mills Inc.; Diamond Knitting Corp.; Express Colour Industries; Fiber Technology Corp.; Filstar Textile Indl. Inc.; FLB Intl. Fiber Corp.; Jantex Phils. Inc.; Jibtex Indl Corp.; Master Colour System; Spintex Intl. Inc.