Tax scam case finally may get rolling

After seven years of legal wrangling, a man and a woman accused of defrauding the government of up to P5.3 billion in taxes may finally go on trial soon after the Office of the Ombudsman granted immunity to two key witnesses, state prosecutors announced yesterday.

A major breakthrough was reached by the Office of the Special Prosecutor, the Ombudsman’s prosecution arm, after Felix Chingkoe and his wife Rosita were granted immunity so they can be used by the government as key witnesses against Chingkoe’s brother, Faustino, and wife Gloria.

Faustino Chingkoe and his wife are accused of "reselling" 573 tax credit certificates worth P2.3 billion to firms that were not entitled to such.

Differences between the Department of Justice, the Department of Finance, the National Bureau of Investigation and other concerned government agencies on how to proceed hampered the case, chief special prosecutor Dennis Villa Ignacio told reporters.

"We can now focus on our work. We can work together now. The perceived irritants have already been removed. The cases can now move forward," Villa Ignacio said without elaborating.

"We will have a weekly meeting to discuss these tax scam cases. At least now we are singing one tune."

As key state witnesses, Felix Chingkoe and his wife will detail how the accused created "ghost" textile firms, used the tax credit certificates for reimbursing from the government taxes and duties purportedly paid, and resold the tax incentives to firms that were not even exporters.

"We have documented the P5.3-billion tax scam case. And they (Felix and Rosita Chingkoe) will be focusing on the P2.3 billion. They will unravel the corporate layers. This is vital in the presentation of the cases. These witnesses will provide the missing links," said Ernesto Hiansen, a Department of Finance official.

Of the over 200 cases related to the scam now pending with the Sandiganbayan, 144 are against Faustino and Gloria Chingkoe.

Villa Ignacio said prosecutors will move to have Felix and Rosita Chingkoe discharged from the indictments. The couple, along with 20 other witnesses, will concentrate on two or three cases that could result in a 45-year prison term for the two accused.