Manila, Philippines - Bureau of Customs (BOC) Commissioner Angelito Alvarez ordered yesterday an internal probe of allegations that Deputy Commissioner Gregorio Chavez tried to extort P179 million from a steel firm that was earlier sued by the government for smuggling P1.3 billion worth of steel products.
Alvarez said he instructed Customs Inspection and Investigation Division (CIIS) investigation division chief Dino Tuason to lead the investigation on the reported extortion attempt of Chavez, who also headed the bureau’s Run After the Smugglers (RATS) program.
“Dino Tuason would conduct an investigation, to work on the evidence because here in the BOC, there are many namedroppers. Some would pretend to be close (to Customs officials) and claim that they can help clear the shipments from Customs or would help drop the case at the Department of Justice (DOJ),” Alvarez said.
Tuason was ordered to submit weekly reports on the progress of the investigation. He said “there is always two sides of a story. On the side of the employees, there is already the CIIS investigation division to continue its probe, while on the side of the importer we would also look into the possible violations committed.”
Sanyo Seiki Steel Corp. filed graft charges before the Office of the Ombudsman against Chavez; his chief of staff, Jet Maronilla; and collection officer Lucila Medina, chief of the Customs bonded warehouse unit.
They allegedly conspired with spouses Godofredo and Anabel Mozo, both Customs brokers; Leo Peter Paul Gonzales, a former chief operating officer of the steel firm; and Marlene Jong, who claims to be Chavez’s wife.
The steel firm said the Mozos, claiming to represent Chavez, demanded P179 million for the release of the firm’s seized shipments. The firm said it had already given the brokers money several times since November 2010, and some of their shipping containers had been released.
Last month, the firm alleged that Chavez led an attempt to raid one of its warehouses but his team was denied entry because they did not have a mission order.
Alvarez said that based on newspaper reports it appeared that the complainant did not personally give the money to Chavez, but to the brokers. He also said since the Ombudsman has just begun verifying the complaint, he is not inclined to suspend Chavez.
Chavez said the filing of graft charges against them was “a desperate attempt to gain public sympathy in the light of reports that the smuggling case the BOC filed against the company would soon be resolved by the DOJ.”
Last Jan. 20, the BOC sued Sanyo Seiki for allegedly misdeclaring, underweighing and undervaluing its steel and stainless steel importations by almost 90 percent. The steel company’s various importations last year were worth over P1.3 billion but the company reportedly declared them as having a value of only P165.4 million, Chavez said.