CA issues TRO in smuggling case vs Phoenix Petroleum

MANILA, Philippines - The Court of Appeals (CA) has temporarily stopped the indictment of a ranking executive of independent oil player Phoenix Petroleum Philippines Inc. and a Customs broker for alleged smuggling of over P5 billion in petroleum products in 2010 and 2011.

In a six-page resolution, the special 10th division of the appellate court issued a temporary restraining order (TRO) stopping the Department of Justice (DOJ) from prosecuting Phoenix president and chief executive officer Dennis Uy and Customs broker Jorlan Cabanes.

The halt order, sought in a petition filed by Cabanes, is effective for 60 days from May 9 when it was promulgated.

“Well-settled is the rule that an injunctive relief may be issued to prevent threatened or continuous irremediable injury to the party before the case can be resolved on the merits,” read the ruling penned by Associate Justice Francisco Acosta. Associate Justices Romeo Barza and Angelita Gacutan concurred in the order.

After “judicious perusal” of the petition, the appellate court said it found “sufficient basis to protect the petitioner’s constitutionally guaranteed right to due process.”

It even suggested that the DOJ resolution, which approved the filing of smuggling case against Uy and Cabanes, “may be reversed by this court.”

Cabanes, in his petition, claimed violation of his right to due process when the investigating DOJ panel allowed the Bureau of Customs to introduce new matters in its appeal against an earlier resolution dismissing the complaint.

“An initial assessment on the instant case reveals the extraordinary swiftness of the DOJ in reversing itself and in rendering the challenged resolution, thereby disregarding the petitioner’s right to a full-blown preliminary investigation,” the CA stated.

“Simply put, unless the implementation of the questioned resolution is restrained, the petitioner may stand trial for criminal charges which he had no chance to rebut (and)... petitioner’s clear and unmistakable right to liberty would seriously be placed in danger,” it explained.

Apart from the TRO, the CA also directed the DOJ and BOC to answer the petition and to appear in a hearing on June 27.

The Department of Finance (DOF), meanwhile, questioned the halt order.

“TROs like this one effectively prevent the government from prosecuting smuggling. Our courts and court processes should not be used by a few to block our progress in enforcing Customs laws, and creating a level playing field for all,” Finance Secretary Cesar Purisima said in a statement.

“This unnecessarily slows down the process but nevertheless, we will not allow anyone to distract us from our continuing drive against smuggling. We look forward to working with the leadership of the judiciary to prevent the manipulation of legal processes which effectively frustrate our quest for justice,” he said.

In a resolution issued last April 24, the DOJ approved the indictment of Uy and Cabanes over fraudulent importations of gas oil, unleaded gasoline and other petroleum products through the ports in Davao and Bauan, Batangas from June 2010 to April 2011.

It approved the complaint filed by the BOC in May 2011 against Uy and Cabanes specifically for non-payment of excise and value-added taxes and for non-submission of import documents in violation of sections 3601 and 3602 of Tariff and Customs Code of the Philippines (TCCP).