Reyes orders barge movements monitored to curb oil smuggling

Anti-smuggling czar and Interior and Local Government SecretaryAngelo Reyes has ordered the monitoring of the movement of barges to curb the rampant smuggling of oil in the country, which is blamed for the P9-billion drop in fuel tax revenues in the last five years.

During a recent meeting of the Cabinet Oversight Committee on Anti-Smuggling (COCAS), Reyes requested the Department of Transportation and Communication (DOTC) to study the feasibility of regulating the movement of barges from point to point in the Philippines.

"If the movement of barges are controlled then it will be easy for us to detect and apprehend those barges that are moving out of line, which are more often than not involved in oil smuggling," said Reyes.

Reyes has been designated by President Arroyo as chief of the Task Force Against Smuggling (TFAS).

In response to Reyes’ request, DOTC Undersecretary Bobby Brilliante said a committee under the DOTC will be immediately formed and will have representatives from the Philippine Ports Authority, Philippine Coast Guard, Maritime Police and the Maritime Industry Authority. The committee will spearhead discussions on having a control system to monitor the movement of barges.

Reyes’ call came in the wake of the Philippine Navy’s seizure of over P27-million worth of palm oil from two towing barges, VPIL-I and VPIL-3, in South Harbor Manila last week. The 1.178-metric tons of oil was shipped to the country from Sandakan, Malaysian, via M/TSun Venus.

Initial inspection on shipment revealed that the palm oil was consigned to Filipinas Palm Oil Processing Inc., which is included in the watch list of the TFAS for alleged technical smuggling.

During the meeting, newly-appointed Customs Commissioner Alberto Lina highlighted the need to regulate the movement of barges in the light of the serious problem of oil smuggling.

The rampant fuel smuggling operation is blamed for the P9-billion drop in fuel tax revenues from 1998 to 2003. Curiously, the drop happened while there was a drastic increase in the number of car registrations, from 3,533 million units to 4,293 million units.

"Fuel smuggling is big problem that is depriving the government of additional revenues in time when additional revenues are very much needed by the government. That is why we have to seriously deal with this illegal activity," Reyes said.

The intensified operation against smugglers is in accordance with the order of President Arroyo, who reactivated TFAS Nov. 16 last year through Executive Order 385 to address rampant smuggling operations in the country.