MANILA, Philippines - President Duterte has ordered tobacco firm Mighty Corp. to pay P3 billion as compromise settlement for tax evasion, effectively rejecting a P1.5-billion offer of firm owner Alexander Wongchuking to settle the case.
The Chief Executive publicly rejected the offer and made the counter-offer to double the amount, which he wants to be used for the construction and refurbishment of a hospital in Manila and two in war-torn Basilan and Sulu provinces in Mindanao.
“Do not give it to me, give it directly to the Department of Health. Have the hospital in Basilan completed and in Jolo, refurbished. Give another one billion to the Mary Johnston Hospital in Tondo. Then, I would be okay,” Duterte said.
“The offer of P1.5 billion is not acceptable for me,” he said in an interview yesterday in Bansalan, Davao del Sur where he visited injured policemen and the wake of those killed in an ambush by communist rebels.
But at a later event, Duterte modified the amount to P5 billion, supposedly on the prodding of other businessmen who thought the counter-offer was too low if interest is to be factored in.
He insisted that he would rather have Wongchuking pay a settlement than place him behind bars.
“He will just go there (jail) and enjoy his time. So, I thought this is all about money. Since you fooled me, I will have you pay but the problem is some businessmen are saying that it would not be fair to them (if Wongchuking pays only P3 billion) since they are paying the correct taxes,” Duterte said in a speech before local government officials of Mindanao.
The President, a lawyer, said the country’s laws allow settlement agreements like the one he is proposing.
If Wongchuking is amenable, then he should go to Finance Secretary Carlos Dominguez III, Bureau of Customs (BOC) Commissioner Nicanor Faeldon and Bureau of Internal Revenue (BIR) Commissioner Caesar Dulay to settle his case.
Duterte said he is ready to forget about the tax evasion cases if Wongchuking agrees to his counter-offer.
Justice Secretary Vitaliano Aguirre II issued an immigration lookout bulletin order against Wongchuking and his brother Caesar yesterday to prevent them from leaving the country without first securing a nod from the department.
Immigration spokesperson Ma. Antonette Mangrobang said their records show that both have not left the country.
The BOC said earlier this week that it is readying charges of smuggling against Mighty Corp. over shipments of cigarettes bearing alleged fake tax stamps seized in successive raids in San Simon in Pampanga, General Santos City, Cebu and Tacloban.
The stamps, according to Michael Dalumpines, did not come from Asian Production Organization (APO) – a printing firm registered with the government and attached to the Presidential Communications Operations Office.
Dalumpines, chairman and CEO of APO, said they would put more security features on the stamps.
Manila Regional Trial Court Judge Tita Bughaw Alisuag earlier issued a temporary restraining order to prevent the BOC and the BIR from inspecting Mighty warehouses until March 23.
Dominguez said they would abide by the order but would move to have it lifted by the judge or by the Court of Appeals.
Last Wednesday, the Parañaque City police arrested three Mighty Corp. employees for dumping a large amount of plastic bags containing cigarettes – branded as Chelsea, King and Marvels – in violation of a city ordinance.
City police chief Senior Supt. Jemar Modequillo said the workers, who explained that the garbage was considered BO (bad orders) or returned products, were first nabbed by Bantay Kalikasan members. – With Edu Punay, Evelyn Macairan, Robertzon Ramirez, Mary Grace Padin