THE Bureau of Internal Revenue (BIR) is investigating 45 suppliers that bagged contracts from the Procurement Service of the Department of Budget and Management (PS-DBM) for pandemic supplies, senators were told at the agency’s budget hearing.
The investigation, done by regional offices of the premier tax agency, falls short of Minority Leader Franklin M. Drilon’s call for the formation of a special task force, but Sen. Panfilo M. Lacson said this at least debunks President Duterte’s claim that Senate inquiries in aid of legislation amount to nothing but publicity stunts of politicians.
Lacson on Thursday listed solid findings as basis for charging erring officials found accountable for misuse of public funds—not to mention the laws that may be crafted thereafter.
“Whatever comes out of the subsequent criminal and administrative investigations being undertaken by the Bureau of Internal Revenue [BIR] and the prosecutors,” Lacson affirmed that “one thing is clear: Contrary to the President’s earlier assertions, Senate inquiries definitely serve the purpose of making those abusing public funds accountable and liable for their misdeeds—not to mention the laws that may be crafted thereafter.”
He suggested that both the BIR and the Bureau of Customs (BOC) pursue their mandate under existing laws to run after all wrongdoers, for tax liabilities, including those who violated Customs rules on the importation of supplies—as well as of luxury cars that went to officers of the biggest supplier Pharmally Pharmaceuticals Corp.
“That said,” Lacson added, “it remains to be seen how the Executive Department will act on the findings of the investigation.”
It was learned that 44 other listed suppliers contracted by PS-DBM were also placed under investigation by the BIR, besides Pharmally, which cornered an estimated P10 billion worth of pandemic supplies out of the P42-billion Department of Health funds that DOH turned over as lump sum to PS-DBM without a memorandum of agreement.
Sen. Juan Angara, chairman of the Senate Committee on Finance, the order to investigate was based on an “internal memo,” as told to him by BIR Commissioner Cesar Dulay. The latter was present at Wednesday’s Senate plenary deliberations on the 2022 national budget.
It was learned that the 45 suppliers are being probed for penalties based on their records covering taxable years from 2019 at 2020.
For his part, Senate Minority Leader Drilon conveyed disappointment as he had pressed for a tax audit by a “special task force or special team of the BIR,” saying expects nothing will happen if the case was passed on to regional offices, adding that no law is violated if this was done.
However, Commissioner Dulay affirmed that regional offices are the ones tasked to investigate suppliers under their jurisdiction. Dulay promised to give senators a report by December 31.
From documents submitted by BIR to the Blue Ribbon committee chaired by Sen. Richard J. Gordon, Drilon had calculated the total tax liabilities of Pharmally and another major supplier, the Chinese-led Xuzhou Construction Corp. However, Drilon’s efforts to have the Blue Ribbon obtain related documents from Pharmally were rebuffed by the company’s executives, prompting the Senate to cite in contempt and order the detention of siblings Mohit and Twinkle Darghani.
Also at the budget hearing, Customs Commissioner Leonardo Guerrero said the Bureau of Customs had no record of the luxury cars that Blue Ribbon probers found to be named under Pharmally officials, based on Land Transportation Office (LTO) documents.
The 2021 Porsche 911 Turbo-S of Mohit Darghani and the 2021 Lexus RCF named to Pharmally director Linconn Ong did not pass through Customs scrutiny, and there is no record of these cars in the agency.
However, the other vehicles went through Customs and taxes were paid.
These were a 2021 Lamborghini Uris in Twinkle Darghani’s name; and 2021 Porsche Carrera, and 2019 Porsche Cayenne, in Ong’s name.