Manila Standard - 2017 March 23 - Thursday

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RADIATING CONFIDENCE.

Binibining Pilipinas 2017 candidates Nelda Ibe (no. 18) and Rachel Peters (no. 19), among 40 gorgeous ladies vying for the title, flash their smiles Wednesday before the cameras during the press presentation at the Novotel in Quezon City. The titlists will shine bright during the Grand Coronation at the Smart Araneta Coliseum on April 30. Sonny Espiritu

VOL. XXXI • NO. 41 • 4 SECTIONS 20 PAGES • P18 • THURSDAY, MARCH 23, 2017 • www.thestandard.com.ph • editorial@thestandard.com.ph

P9.5-b tax case vs Mighty By Rey E. Requejo and Julito G. Rada THE government on Wednesday filed a P9.564billion tax evasion case against the owner of the cigarette company Mighty Corp. and its officials for allegedly using counterfeit tax stamps to avoid paying excise taxes. In a complaint filed by the Bureau of Internal Revenue, owner Alexander Wong Chu King, company president Edilberto Adan, executive vice president Oscar Barrientos, and treasurer Ernesto Victa of violating sections of the National Internal Revenue Code of 1997. Senior Assistant State Prosecutor Susan Dacanay, chairperson of the Justice Department’s Run After Tax Evaders Task Force, received the complaint against Mighty Corp. officials. Dacanay said the complaints will undergo pre-

liminary investigation to determine if there is probable cause to warrant the filing of charges in court. The BIR said the cigarette firm was the subject of on-the-spot surveillance operations and that when investigating officers entered four warehouses leased by the corporation and conducted random tests, they found that the stamps used were fake. A check by the Excise Large Taxpayers Service also showed the stamps used were fake. “The inventory showed that Mighty Corp. stored 66, 281 master cases containing 33,140,500 packs of cigarettes. The investigation further showed that 87.5 percent of [these] bore fake revenue stamps,” the BIR said. The BIR also said the stamps were not affixed at the production plant as required by law. The bureau said the company’s failure to present

official delivery receipts showed that the cigarette packs in the warehouses did not come from the manufacturing plant in Barangay Tikay, where the stamps should have been affixed. Last week, Justice Secretary Vitaliano Aguirre II said Mighty Corp. gave in to President Rodrigo Duterte’s offer to pay P3 billion to settle its excise tax liabilities. But Finance Secretary Carlos Dominguez III found the amount too small, saying the Bulacanbased cigarette manufacturer must pay 10 times over its assessed liability to the government. Aguirre did not say though if the corporation would still be amenable to paying the higher amount. Duterte previously said he would use the amount to upgrade the Mary Johnston Hospital in Tondo, Manila and to build additional hospitals in Basilan and Jolo, Sulu. Next page

Solons: Abaya liable for plunder

DFA urges Robredo to check facts By Sarah Susanne D. Fabunan

“How can they have proper maintenance of the MRT 3 system if they do not even have a wheel lathe machine? We will pay them P3.81 billion with their spit as their only capital?” Nograles said. Abaya should have disqualified BURI outright as it did not even have spare parts to show it can maintain the MRT 3 system, he said. Questioned by Nograles, BURI officials admitted that they did not have the right equipment and the spare parts needed to conduct critical maintenance work to ensure the safety and the efficiency of the MRT 3. They also admitted that much of its primary commitments under the P3.81-billion service contract had not been delivered. Nograles said BURI initially denied that it had subcontracted work to a machine

THE Department of Foreign Affairs on Wednesday reminded Vice President Leni Robredo that freedom of expression is a right that comes with the responsibility to ensure that facts are verified, and unfounded allegations from questionable sources are avoided. This was DFA’s reaction to Robredo’s recorded remarks to a side event of the 60th Session of the United Nations Commission on Narcotic Drugs in Vienna, Austria, that criticized the rising death toll due to summary executions in the government’s war on drugs. “This side event was not part of the official proceedings of the 60th Session of the UN-CND and did not reflect the stand of participating governments,” the DFA said. “In the UN context, side events, or activities organized outside the formal program of official UN meetings, provide an

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Ex-DoTC chief faces raps over ‘onerous’ deal with MRT supplier By Christine F. Herrera

L

JOSEPH EMILIO ABAYA

AWMAKERS on Wednesday vowed to hold former Transportation secretary Joseph Emilio Abaya and others liable for plunder for awarding a P3.81-billion Metro Rail Transit 3 contract to a service provider with no capacity for keeping 43 aging coaches running safely, and whose only capital was “empty promises.”

China told to explain Scarborough radar plan By Sara Susanne D. Fabunan plans on Scarborough Shoal... FOREIGN Affairs on Wednesday confirmed it has filed another note verbale against China asking it to explain its plan to install a radar station in the resource-rich Panatag or Scarborough Shoal. Foreign Affairs spokesman Charles Jose said they handed over the diplomatic protest to the Chinese Embassy and that they were still waiting for the response of its Ambassador to the Philippines Zhao Jianhua. “We have sought clarification from China on the reported

We handed the note to Chinese Embassy yesterday [Tuesday],” Jose said. He made his statement even as Chinese Foreign Ministry spokeswoman Hua Chunying on Wednesday denied the reports that China will begin installing a radar station in Scarborough Shoal. “According to the relevant bodies in China, the reports you mention that touch upon... Scarborough Shoal are not true,” Hua said. She said China was for “the Next page

3 reasons for Senate to kill death penalty bill—CBCP By Vito Barcelo THE Catholic Bishops’ Conference of the Philippines has sent a letter to the Senate citing three reasons why the death penalty bill should be rejected. The letter, signed by CBCP president and Lingayen-Dagupan Archbishop Socrates Villegas, says the death penalty is “not necessary,” it will “not be helpful,” and

it “will not be a move towards greater justice.” The letter says the revival of capital punishment is not a move toward justice because “the trend in dealing with crimes now should be towards restorative and not vindictive justice.” The CBCP says Supreme Court records show that the judicial errors committed with regard to the death penalty is more than 70 percent. Next page

Abaya and his men could also be indicted for buying 48 China-made coaches that were incompatible with the MRT 3 system, said Pwersa ng Bayaning Atleta or PBA Rep. Jericho Nograles. “Former and incumbent MRT 3 and DOTr officials could be charged for plunder and grave abuse of authority for their role in this onerous service contract with Busan Rail Inc. [BURI],” Nograles told a hearing conducted by the House committee on transportation, chaired by Catanduanes Rep. Cesar Sarmiento. During the hearing, Sarmiento said the panel would dig deeper. Nograles expressed shock after he learned that Abaya awarded the service contract to BURI, which outsourced the job to a “smalltime” machine shop in Bulacan that can only do grinding and truing of rail wheels manually.

Metro cops cite proof of Maute terror plot By Joel Zurbano PRECAUTIONARY measures are now in place to ensure the security of the public after the arrest of a suspected supporter of the Maute terror group, an official said Wednesday. Nasip Ibrahim was arrested Monday night and presented to reporters on Tuesday together with the firearms, ammunition and illegal substance found in his possession at the Salam Compound in Culiat village in Quezon City. ”After the arrest of Ibrahim, we will take the necessary precautionary measures to ensure the security of the public not just in Metro Manila but in other areas,” PNP spokesman Dionardo Carlos told reporters in Camp Crame. Carlos made his statement even as Metro Manila Police Office Chief Oscar Albayalde confirmed the existence of members of the Islamic State-inspired Maute group in Metro Manila. Albayalde made the confirmation after Col. Edgardo Arevalo, Next page

FAKE STAMPS. Two Internal Revenue officials file a criminal case against officials of the Mighty Corp. for

using fake BIR stamps in their cigarette packs amounting to P9.5 billion before State Prosecutor Susan Dacanay at the Department of Justice Wednesday. (Story above) Norman Cruz

Leni’s EJK yarn puts PH on a spot—DoT By Sandy Araneta TOURISM Secretary Wanda Teo said Wednesday that Vice President Leni Robredo’s statements and media reports about extrajudicial killings have made it difficult to

promote the Philippines as a tourist destination. In a press briefing in Bangkok, Teo asked the media to tone down reports on the killings. “Help us sell the Philippines. Help us because…it’s very difficult for me to sell the Philip-

pines, especially if extrajudicial killings are being discussed,” Teo said. Teo said tour operators abroad were “always” asking her about the issue, citing Asia and Europe as regions where people were parNext page ticularly concerned.


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