Ex-DOF exec gets 32 years over tax credit scam

MANILA, Philippines — The Sandiganbayan has sentenced former Department of Finance (DOF) executive director Uldarico Andutan Jr. to up to 32 years in prison for graft in connection with the multibillion-peso tax credit scam in the 1990s.

In a 55-page decision promulgated last Feb. 10, the Sandiganbayan Second Division found Andutan guilty of four counts of violation of Section 3 (e) of Republic Act 3019 or the Anti-Graft and Corrupt Practices Act.

He was sentenced to a minimum of six years to a maximum of eight years of imprisonment for each count of the offense or a total of 24-32 years for all counts. He was also ordered perpetually disqualified from holding public office.

Furthermore, the graft court said Andutan must pay the national government a total of P4.692 million in civil liability.

The court had earlier dismissed the cases against the primary accused, former finance undersecretary Antonio Belicena as well as against former DOF tax evaluator Emelita Tizon due to their death.

Meanwhile, the Second Division ordered the cases against private respondent Eulogio Reyes, president of Devmark Textile Industries Inc., to be temporarily archived as he remains at large, without prejudice to the cases’ revival in the event of his arrest or voluntary surrender.

Filed by the Office of the Ombudsman, the cases stemmed from the DOF One-Stop Shop Inter-Agency Tax Credit and Duty Drawback Center’s issuance of four tax credit certificates (TCCs) totaling P4,692,595 in favor of Devmark Textile in February 1998.

The ombudsman said that Belicena, Andutan and the other accused conspired in awarding the TCCs to Devmark, which eventually assigned or transferred the credits to Proton Pilipinas Corp., in violation of Executive Order No. 226 (Omnibus Investment Code of the Philippines).

The ombudsman said Proton Pilipinas was not qualified for the tax credit transfer as the Code states that only domestic producers or manufacturers of raw materials and components shall be entitled to tax credits.

Proton was engaged in the business of importation and distribution of cars and motor vehicle parts.

In convicting Andutan, the Sandiganbayan said the ombudsman’s prosecution panel was able to sufficiently establish that he and Belicena conspired in granting the TCCs to Devmark and approving their unlawful transfer to Proton.

The Tax Credit project was spearheaded by the DOF during the administration of the late former president Fidel Ramos with the aim of revitalizing the local manufacturing industry.