Illicit trade syndicates

ILLICIT trade is the manufacture, importation, distribution and sale of goods that violate trademarks, intellectual property rights, and evade taxes.

This has been a persistent problem that seriously affects the economy and poses risks to the environment and public health.

Most affected is the agricultural sector, particularly tobacco, rice, meat, and let’s not forget the onion industry.

Illicit trade is a serious problem that every administration has tried to solve but only managed to make occasional seizures and peon arrests while the deeply embedded smuggling networks remain operational.

The Anti-Agricultural Smuggling Act of 2016 classifies large-scale agricultural smuggling as economic sabotage and imposes harsh penalties for offenders.

However, enforcing this law remains a challenge due to the lack of coordination among government agencies, the presence of corruption and collusion, and the difficulty of tracking and monitoring illicit trade activities.

To give you an idea of how big and how damaging smuggling operations are, the Bureau of Customs reported seizures valued at over P 23.8 billion during the first quarter of this year.

Among the top products are counterfeit agricultural goods, tobacco, general merchandise, and illegal drugs.

Almost anything that can be manufactured in a factory or a sweat shop is at risk from counterfeiters and illegal traders.

bacco products and alcoholic beverages.

This creates the perfect scenario for smugglers and their distribution networks to exploit a big market of low income tobacco and alcohol consumers who cannot afford the highly taxed retail prices.

In compliance with Republic Act 11346 or the Tobacco Tax Law of 2019 the excise on cigarettes is now P55 per pack, a P5 increase from last year.

programs such as the massive Build Better More projects to upgrade and expand the country’s transportation infrastructure like roads, airports and seaports.

There will be less resources to implement the Universal Healthcare programs. There will be less budget allocation to operate and improve public services.

Black market syndicates will hurt the viability of all legitimate businesses, big and especially the small enterprises, and their millions of dependents.

Whenever a consumer buys contraband products on the streets or online, the money exchanged is lost to illicit traders.

They are known to be connected to organized crime syndicates whose operations are linked with more illegal and nefarious activities such as drug and human trafficking.

KAHULUI, Hawaii—The first Vilma Reed knew there was a fire bearing down on Lahaina was when she saw it a few meters from her house.

Like many of those who fled the fast-moving blaze that killed at least 80 people on the Hawaiian island of Maui, she got no official warning and no order to evacuate.

“You know when we found that there was a fire? When it was across the street from us,” the 63-year-old told AFP in an evacuation center parking lot.

“The mountain behind us caught on fire and nobody told us jack.”

Reed herded her daughter, grandson and two pet cats into the car and careered out of town.

“I raced a line of fire to get my family out,” she said.

The cause of the terrifying inferno was still under investigation Saturday (Sunday in Manila), but experts say whatever sparked it, a collision of circumstances meant that it spread very quickly.

These include the unchecked growth of flammable non-native plants, the volcanic topography that creates drying down-slope winds, an unusually parched winter, and a churning hurricane hundreds of miles (kilometers) to the southwest.

But in a state not unused to natural disasters—Hawaii has earthquakes, active volcanoes, a history of tsunamis and is regularly hit by powerful tropical storms —the lack of warning from authorities has puzzled and angered many.

“We underestimated the lethality, the quickness of fire,” Hawaii congresswoman Jill Tokuda told CNN.

“It’s not like hurricane force winds are unknown to Hawaii, or dry brush, or red flag conditions. We saw this before in (Hurricane) Lane. We did not learn our lesson from Lane (in 2018)—that brush fires could erupt as a result of churning hurricane winds below us to the south,” Tokuda said.

The fire knocked out power and resi- dents of Lahaina told reporters that they had no cell service—a common channel that authorities use when they want to alert residents to danger.

The same electricity blackout would certainly have limited residents’ ability to watch television or listen to the radio -- two other channels where official warnings are issued.

But the more robust outdoor warning sirens that are intended to alert islanders to danger did not sound, the Hawaii Emergency Services Administration (HI-EMA) said Friday.

“Neither Maui nor HI-EMA activated warning sirens on Maui during the wildfire incident,” the organization said, according to NBC News.

Hawaii’s governor, Josh Green, said it was “too early for me to tell” whether the absence of sirens was a technical failure or a deliberate decision by operators.

On Friday, the state’s attorney general, Anne Lopez, said she was launching a probe into the timeline of the blaze, including “critical decision-making” at the time the flames were spreading. ‘Big sirens’

For Kamuela Kawaakoa, it felt like the town was left to fend for itself as disaster struck.

“There were no emergency alerts. No warning systems went off—nothing, so some people didn’t even know about the fire till it was too late,” the 34-year old told AFP.

Kawaakoa, who is now living in a popup tent and surviving on the kindness of strangers, said even without cell service and power, there should have been a way to tell people what was happening.

“You can still call 911 without any cell service, you should still be able to get emergency alerts on your phone,” he said.

“And then we have these big sirens on poles... I’m sure they have a way of making it work even without power.

“You know, they gotta be prepared for that kind of stuff.”

The counterfeiters and smugglers have a well-entrenched system of transporting, concealing, and distributing contraband to be distributed to consumers looking for cheaper options in the black market. Illicit traders have infiltrated social media and e-commerce platforms as online outlets for counterfeit products.

Whenever the government imposes high taxes on certain products, they become easy targets for illicit trade.

If you are a smoker or if you indulge in alcoholic beverages, you know how the “sin” taxes have greatly increased the price of to-

Kawaakoa, who worked in the now-razed Captain Jack’s restaurant on Lahaina’s touristy Front Street, said victims were pointing to downed power lines as a possible source of ignition for the blaze.

Why, he wants to know, were they not shut off?

Next year this will increase to P60 per pack.

Notably, the taxes contributed by the tobacco industry accounted for about half of the country’s total annual excise tax revenues which translates to approximately P147 billion a year.

However, the illicit side of the tobacco trade continues to steal billions from this revenue potential.

In a statement during a recent forum organized by the National Tobacco Administration, its Regulatory Head, Mr. Robert Ambros said the yearly haul of tobacco smugglers has been estimated at a whopping P30 billion.

It would be safe to assume that the real figures are much higher due to the very clandestine nature of illicit trade syndicates.

The impact of illicit trade goes beyond lost government revenues and strikes deep into the economic and social dynamics of society.

Lost tax revenues mean there will be less resources for urgent economic recovery

“I can’t believe that God allowed this to happen,” he told AFP, after losing everything in the fire that devoured Lahaina, a picturesque harbor on the Hawaiian island of Maui.

Garcia came to Lahaina from California for a weekend in 1993 and never left, building his life in the laid-back town that was once home to Hawaii’s royal family.

His apartment looked down on a busy tourist street, where visitors packed bars, restaurants and trinket shops.

All of that is now gone, subsumed in flames that killed at least 80 people and destroyed hundreds of houses.

The 80-year-old has slept rough in the burned out shell of the town for the last few nights, unable to process the scale of destruction and absence in what was once a vibrant, joyful place.

He clings now to the area underneath a huge spreading banyan tree, the spiritual center of the town, and—until this week—a symbol of its stability.

“I feel like there was more that could have been done to save a lot of people that died in this fire,” he said.

Elsewhere, for three days since the hurricane-fuelled wildfire tore through his town, Anthony Garcia has swept a square normally packed with tourists, but now filled with charred debris and the scorched remains of animals, trying to make sense of a catastrophe that came from nowhere.

“This tree? Standing for more than a century,” he said.

“And there? Lahaina’s first courthouse. Beyond? The Pioneer, opened in 1901, Hawaii’s first hotel!”

The wildfire was first reported early Tuesday morning, but seemed distant enough from the town.

It flared later in the day, and then power-

Smugglers and their illicit trade syndicates do not worry about any regulatory compliance to protect the welfare of their customers.

They don’t care about the quality or safety of the contraband they sell because it would be impossible for a victimized consumer to run after them, more so to prosecute them for any harm that might befall the use or consumption of their fake products.

The recent spikes in rice and onion prices that struck hard on the already inflation-weary consumers from price manipulation of the criminal alliance of smugglers and hoarders are causing concern.

No less than the President has stated in his last SONA that “ we will run after them and we will file charges against them,” and even emphatically warned in Filipino that the days of smugglers and hoarders are “numbered.” ful gusting winds blew it suddenly through the streets.

I certainly hope President Marcos Jr. will be successful in his crack down against illicit trade.

When he does, this will be the first President to win against an evil and notoriously resilient Enemy of the State.

Many residents knew almost nothing of the flames until they saw them coming, consuming homes, cars and public buildings.

“It took everything, everything! It’s heartbreaking,” Garcia said.

Under the still-spreading but blackened branches of the banyan tree, Garcia piles scorched debris and dead animals that he has collected in an almost futile effort to put things right.

In his mind’s eye, he can still see turquoise waves breaking on the boardwalk, as visitors take selfies and lick their ice creams.

“In the mornings, this place was full of birds singing, exchanging stories,” said Garcia.

Now only the occasional pigeon scuttles through the ashes, pecking uselessly at the baked ground.

Some of those who have returned to find their houses in cinders stop to greet him.

For many, there is no reason to stay; nothing left to find among the ruins of their lives.

“I’m sad for everyone,” said Garcia, staring out to sea as a truck hauling rubble rumbles past. “But I’m staying here. I don’t want to go to another place, I want to help rebuild.”

“This place gave me so much joy, it made me a happy man,” Garcia added.

“So I’m going to start over. We have to try again.” AFP

In Brief

Ex-Manila vice mayor

Danny Lacuna dies, 85

FORMER Manila Vice Mayor Danilo Lacuna passed away on Sunday morning at the age of 85, his eldest daughter, Manila Mayor Honey Lacuna-Pangan, announced.

In a Facebook post, the Lacuna family said their “Daddy Danny” died early Sunday morning surrounded by his loved ones.

“A man of great service and compassion, Danny touched many, creating a life that spans further than just his years and into the hearts of us all where he will remain forever,” the post read.

Lacuna served as Manila Councilor from 1968 to 1975, and Manila Vice Mayor from 1970 to 1971; 1988 to 1992; and 1998 to 2007.

He also founded the local political party, Asenso Manileño, which produced former Manila Mayor Isko Moreno and incumbent Mayor Honey Lacuna, according to the Manila public information office (PIO).

The late vice mayor is survived by his wife Melanie “Inday” Lacuna and five children: Honey, Lei, Dennis, Liza, and Philip.

Details regarding the wake will be announced later, according to the Manila PIO.

LTO

warns vs. fixers in license plates deals

LAND Transportation Office (LTO) chief Vigor Mendoza II on Sunday warned vehicle owners with unclaimed license plates against dealing with unauthorized fixers out to make a fast money out of the transactions.

Mendoza cited reports that certain individuals were are already negotiating with LTO clients for a P200 for the release of license plates.

“Those people would ask for P200 to avoid long queues in all district offices and distribution sites. I am telling the public now that it is not true. We have put in place an orderly system to expedite the distribution process,” he said.

“And take note, this is all for free. I am asking the public to immediately report to us whoever would ask money from you,” he added.

The distribution process for the license plates has started in some areas, particularly in Bicol, he said.

“This is the kind of public service that the Filipino people expect from us on the marching order of Transportation Secretary Jaime Bautista,” he added. Rio N. Araja

Cop dies in ambuscade on Basilan vice mayor

THE vice mayor of Ungkaya Pukan in Basilan and government escorts were ambushed by unidentified gunmen, leaving one dead and several wounded on Saturday noon, the Armed Forces of the Philippines (AFP) Western Mindanao Command (WESTMINCOM) said Sunday.

“At about 3:45 p.m., one platoon of the Alpha Company of the 64TH Infantry Battalion, together with Vice Mayor Ahmadin Baharim of Ungkaya Pukan and JPST (Joint Peace and Security Team) onboard two Kia KM450 and two civilian vehicles were ambushed in Barangay Ulitan, Ungkaya Pukan, Basilan Province by more or less 10 unidentified perpetrators,” the Westmincom said in a statement.

The assassination attempt took place as Baharim and his escorts were inspecting Brgy. Ulitan in preparation for an upcoming medical outreach program for the local community.

Authorities said the firefight lasted five minutes and resulted in the death of one soldier and nine others including one policeman wounded.

Vince Lopez

KEEPING THEM FIT.