2 Taiwanese nabbed for selling deformed P1 coins

The National Bureau of Investigation (NBI) apprehended two Taiwanese nationals, who were allegedly caught in possession of almost seven tons of machine-pressed, deformed P1 coins about to be shipped to China.

Victor Bessat, NBI-deputy director for special investigation services, said they apprehended Taiwanese nationals Lin Ming Chin, alias Kevin Lin, 27; and Hsin Lee, 26, both residing at 22 Joy Street, Multinational Village, Parañaque City, inside a warehouse located at K3 Warehouse, JY and Sons Warehouse Complex, Veterans Center, Western Bicutan, Taguig City.

The NBI-National Capital Region Division said after a series of surveillance operations they secured search warrants from Judge Ramon Pacis of Branch 266 in Pasig City and Judge Zosimo Escano of Branch 259 of Parañaque City to give them authority to search Lin’s house and the warehouse.

The Taiwanese were accused of violating provisions of Presidential Decree no. 247 in relation to Article 164 of the Revised Penal Code or an act prohibiting and penalizing defacement, mutilation, tearing, burning or destruction of Central Bank notes and coins.

NBI-NCRD Regional Director Ruel Lasala urged the Bangko Sentral ng Pilipinas (BSP) to make ecommendations for higher penalties.

The syndicate could have earned P3 million to P4 million from selling the coins in China had they succeeded in shipping the close to seven tons of contraband items.

For this year alone, the suspects told NBI case investigator Agent Gerry Abiera that they had delivered some 45 tons of coins to China.

The syndicate has also attempted to send damaged coins to Japan four times but these were all foiled by the BSP, the Bureau of Customs, and the Philippine National Police.

The coins were purposely flattened to avoid detection by authorities at the ports of exit and were declared as simple metals.

Lasala said the syndicate is after the nickel content of the coins.

"The nickel content of our P1 coin is extracted and separated from its other metal contents and later used to manufacture computer parts in China. The BSP study disclosed that Philippine coins have better nickel, copper and zinc content than other foreign coins," he explained.

Special Investigator Federico Criste, of the NBI-National Capital Region Division, said that for every 165 pieces of mutilated P1 coins, which is equivalent to one kilo, the suspects pay P300, and then pass it on to their buyers at P1,000 per kilo.

BSP currency specialist Grace Malig said the syndicate was after the P1 coins manufactured from 1995 to 2000 because the coins has "better composition" of metals.

This, she said, prompted the BSP to change the coin’s metal composition. New P1 coins are now steel-plated.

Reducing the nickel content of the P1 would also free law enforcement agencies from running after syndicates stealing or forging Philippine currencies.

Last month, the NBI-Field Operations Division busted the first ever syndicate that was allegedly manufacturing bogus P5 and P10 coins and accosted Taiwanese national Yung Sung Liu in Valenzuela City.

Meanwhile, the BSP official said there are three billion pieces of P1 coins in circulation and the country is only experiencing an "artificial shortage" of P1 coins because several people are hoarding them.

"People think that coins have no value, but these counterfeiters and smugglers show that our coins have value and that they are interested in our coins," said Malig.