NBI arrests alleged rice smuggling king

MANILA, Philippines - Tagged as a big-time rice smuggler using “David Tan” as alias, businessman Davidson Bangayan surfaced at the Department of Justice (DOJ) yesterday to deny the allegations – only to be arrested for an unrelated offense and released hours later.

Bangayan met with Justice Secretary Leila de Lima to personally deny the accusations of Federation of Philippine Industries chairman Jesus Arranza that he was a major rice smuggler wanted by authorities.

Bangayan, accompanied by lawyer Benito Salazar, explained to De Lima that he is not engaged in major rice importation and that he is into the scrap metal and fertilizer businesses.

“(His rice business) is not that big, according to him. Therefore, he could not be the big-time smuggler that’s being referred to. He said he is willing to cooperate so I referred him to the NBI (National Bureau of Investigation) and submit a statement,” De Lima told reporters.

But when Bangayan, 33, went to the NBI on De Lima’s instructions, an arrest warrant against Tan was served on him.

Bangayan was released in the afternoon after it was found that he was not the same Tan facing a criminal case of electricity pilferage before a Caloocan City court.

But lawyer Virgilio Mendez, the NBI’s deputy director for regional operation services, insisted they have “evidence and witnesses to prove that” Tan and Bangayan are one and the same person. He said NBI records show Tan and Bangayan even have the same address.

Informed of the development, Bureau of Customs (BOC) commissioner John Phillip Sevilla said his agency “will continue to work hard against rice smuggling, regardless of who carries this out, and we urge the public to remain vigilant alongside us.”

De Lima confirmed there is an outstanding arrest warrant against Tan issued by the Regional Trial Court of Caloocan City Branch 126 in October 2010 for violation of Republic Act 7832 (Anti-Electricity and Electric Transmission Lines/Material Pilferage Act of 1994).

The NBI only got its copy of the arrest order last Jan. 7, she added.

The RTC had recommended a P40,000 bail for the accused.

De Lima said she immediately ordered the NBI to turn over Bangayan to the court, considering that the complaint against him is bailable.

After failing to hold Bangayan, the NBI decided to just get his fingerprints for further verification.

De Lima clarified the arrest had nothing to do with the rice smuggling allegations.

Three NBI agents visited the sala of Caloocan City Judge Lorenza Bordios yesterday afternoon “to verify if the person in their main office in Taft Avenue is the same person who has a standing warrant of arrest for violation of RA 7832.”

Bordios’ staff did not allow reporters to read documents of the case, saying only those with “legal personality” are given access to sensitive papers.

One of the NBI agents who declined to be named said Tan need not appear in court if he was indeed the subject of the warrant.

“All he has to do is send his lawyers so they could post bail,” the agent said, adding that the bureau is still validating other information, “including reports of his alleged protectors and connections.”

Bangayan’s lawyer Salazar denounced what he called the “wrongful arrest” of his client.

“The warrant is against David Tan. My client is Davidson Bangayan,” he told reporters at the DOJ.

The lawyer said his client was released by the NBI at around 3:30 p.m. after verifying that he was not the subject of the arrest warrant.

Another lawyer of Bangayan, Laurence Arroyo, said the businessman was “maliciously and unfairly” dragged into the smuggling issue.

Arroyo stressed that Tan is reportedly from Davao while his client is not.

He also dismissed as “unfounded, speculative” allegations that Bangayan’s companies – Silver Dragon Resources Singapore Pte. Ltd., Silver Dragon Hongkong Limited, Advanced Scrap Specialist Corp., Amphibian Metal Trading Co., Advanced Transystem Corp. and Advanced Scrap Metal Corp. – had links to the alleged activities of Tan.

“This group of companies (based in the Philippines, Singapore and Hong Kong) has always respected and observed the laws of the host country, including the Philippines,” he added.

Arroyo also questioned the credibility of the sources of the NBI who cited a 2005 civil case filed against Bangayan by Eric Ang, a Singaporean national and general manager of Resem Inc., involving the shipment of used tires.

“Our clients have never been involved in the tire export industry as Ang and Arranza suggest. The case filed by Eric Ang before the Calamba City Regional Trial Court on 13 July 2005 has long been dismissed. It is, in fact, Eric Ang who has an outstanding warrant of arrest against him for perjury, on top of other pending cases for estafa in various courts in Manila,” the lawyer stressed.

“Arranza himself, who ironically presents himself as a credible informant to the local press, has yet to be cleared of the libel suit filed against him in 2006,” he added.

The lawyer said his client plans to file libel cases against the individuals who tried to link him to the illegal importation of rice into the country.

“Our client will not ignore these malicious falsehoods. We have been instructed to file libel cases against those who fabricate and perpetuate and purvey these falsehoods,” Arroyo bared.

Meanwhile, lawyers interviewed by The STAR found the arrest warrant “dubious,” saying this was their first time to see an arrest warrant categorically clearing certain people.

The arrest warrant read: “You are hereby commanded to arrest the person/s who is/are to be found at the address/es indicated below: Rose Tan, who is not Rosalind Galicia; David Tan, who is not Davidson Bangayan; and Benson Tan alias Mr. Kiao, who is not Venson Bangayan – All Advance Metal Traiding (sic), Blk.5. Lot 1, ACCO Homes Langaray St., cor. Dagat-Dagatan Avenue, Caloocan City.”

Fruits of BOC overhaul

In Batangas City, President Aquino said yesterday the BOC is reaping the benefits of the recent revamp in the agency as collections have more than doubled.

He cited an account from an unnamed sports car enthusiast of how some P12 million in taxes during previous administrations have ballooned to P28 million, thus reducing significantly sales and profit in the sports car business.

“According to him, that is a sign that the right taxes and duties are being collected properly and efficiently,” Aquino told newsmen who covered the groundbreaking of the Lopez-owned First Gen 414 megawatt power plant in barangay Sta. Rita in Batangas.

Sevilla recently took over from Ruffy Biazon who resigned after being linked to the pork barrel scam. Sevilla’s deputy is Jessie Dellosa. Eight other retired generals have assumed posts at the BOC since November.

“So, I understand it is really having an effect. That certain people who used to take shortcuts, as I have observed, have already been conforming and they no longer have any more leeway not to conform,” Aquino said.

“Of course, it’s not perfect. They have been there just a few months, but we do expect results, that’s why we put in these particular people,” he added.

While he was not disputing figures that the government had lost about P1.3 trillion to smuggling from 2002 to 2011, Aquino nevertheless assured the public that government is doing its best to address the problem. He stressed only a small fraction of the losses materialized during his administration, which began in 2010.

Aquino likened the Customs overhaul to a computer getting a reboot. “We pressed the restart button. So, in short, everything got a reboot,” he said.

He also said addressing the problem at the BOC should not be on a piecemeal basis or just like what students with limited allowances would do to have their cars fixed.

“In the end, it’s all temporary solutions that have not been treated or repaired as a whole. So that’s what happened to Customs,” Aquino said. “But now, we have already replaced them all, in effect or to a large degree, the expectation is these people will carry out their functions.” With Delon Porcalla, Aie Balagtas See, Evelyn Macairan, Rey Galupo