23 finance officials, others charged with plunder

MANILA, Philippines - Twenty-three finance department officials and private individuals will be charged with plunder before the Sandiganbayan by the Office of the Ombudsman more than a decade after allegedly defrauding the government of more than P73.76 million in taxes in the tax credit scam between 1994 and 1996.

Among those charged with plunder were Antonio Belicena, then DOF assistant secretary and executive director and administrator of the One-Stop Shop Inter-Agency Tax Credit and Duty Drawback Center (Center); Uldarico Andutan Jr., then deputy executive director of the Center; Asuncion Magdaet, a reviewer of the Center; Rowena Malonzo, Tax Specialist 1 of the Center; spouses Faustino and Gloria “Eng Eng” Chingkoe, owners of Filstar Textile Industrial Corp. (FILSTAR); Grace Chingkoe, corporate secretary of FILSTAR; and Catalina Aranas Bautista, a FILSTAR representative.

The anti-graft agency also ordered the filing of 28 counts of violation of the Anti-Graft and Corrupt Practices Act and 28 counts of estafa through falsification of public documents against Belicena and the Chingkoes.

Charged with graft were Andutan, Magdaet, Jane Aranas, Cherry Gomez, Emelita Tizon, Charmelle Recoter, Annabelle Dino, Merose Tordesillas, Gemma Ortiz, Gregoria Cuento-Evangelio, all evaluators of the Center; Maximiano Acilo, Bautista, Amante Ares, representatives; and Rodel Rodriguez, general manager, all of FILSTAR; Pacifico Cruz, general manager for Treasury and Taxation of Pilipinas Shell Petroleum Corp.; Celso Legarda, vice president and general manager of Petron Corp.; and Leonardo Tanseco, vice president, Logistics, Duracon Mobile Power Corp.

Dyna Simonette Dolor, a senior tax analyst of the Center, and the Chingkoes will also be charged with obstruction of apprehension and prosecution of criminal offenders before the Manila Regional Trial Court.

Investigation showed the respondents, in conspiracy with private individuals, caused the issuance of Tax Credit Certificates (TCC) in favor of FILSTAR, even if it is not qualified to receive tax credit incentives under Executive Order 226 or the Omnibus Investment Code of 1987.

Under the Code, an importer, exporter, or manufacturer registered with the Board of Investments can avail itself of tax credit incentives on raw materials and on domestic capital equipment.

The Office of the Ombudsman said tax credit is a rebate or refund of import taxes and duties which a BOI-registered enterprise, firm or manufacturer has paid beforehand to the government on the raw materials, supplies and semi-manufactured products earlier imported for use in the manufacture, processing or production of its finished product to be exported later.

Under the tax credit incentive program, the government gives back to the exporter or manufacturer the import duties and taxes it had earlier paid, not in cash, but through a TCC.

The government guarantees to honor and accept the TCC as payment for taxes and duties and other obligations.