JUSTICE Secretary Jesus Crispin Remulla yesterday said the government is losing billions of pesos due to oil smuggling and pilferage, or the “paihi” system.
Speaking at the Kapihan Media Forum at the Department of Justice, Remulla cited estimates provided by the Bureau of Internal Revenue (BIR).
He said he and BIR Commissioner Romeo Lumagui Jr. discussed the matter after the latter led the filing of a tax evasion complaint against dismissed Bamban, Tarlac Mayor Alice Guo and two others before the DOJ.
“Sa aking tingin, puwedeng umabot ng daang bilyon na nawawala sa atin dahil sa mga sindikatong nananaig sa paihi sa fuels (I think that our losses may have reached hundreds of billions because of syndicates who are involved in smuggling of fuel),” Remulla said.
“(Fuel) is our biggest capital account as a country,” he added.
Under the “paihi” system, oil from larger vessel is siphoned off and transferred and sold to smaller sea crafts at sea for discounted rates without payment of dues to the government and without being marked by the Bureau of Customs.
Remulla has flagged the pilferage of oil following the consecutive sinking of vessels off the coast of Bataan last month.
MT Terranova owned by Shogun Ships Company Incorporated capsized on July 25 off Limay, Bataan.
On July 27, authorities also reported the sinking of MTKR Jason Bradley in Bataan.
MV Virola 1 also ran aground in Mariveles Bataan on July 23.
MT Terranova was carrying 1.4 million liters of industrial fuel, while MTKR Jason Bradley was reportedly carrying 5,500 liters of diesel, though the latter’s owner denied it.
Remulla said the incidents opened a “pandora’s box” that was “silently tolerated for the longest time.”
“Dalawang klaseng paihi ‘yan. ‘Yung isa sa bulk suppliers ng oil, talagang humihigop talaga sila ng porsyento ng langis tapos pinapasa sa tao sa taas ng presyo ng langis ‘yung systems loss nila (There are two kinds. One is where the bulk suppliers get a percentage of oil and then pass it on to consumers at higher prices as systems loss),” he said.
Another, he said, is the pilferage of oil perpetrated by syndicates.
Remulla said a Batangas-based group, who he said is a “long-standing syndicate,” is responsible for the pilferage.
The DOJ chief also suggested that oil companies may have already come to terms with the syndicate as part of their operations.
“Kasi parang tinanggap na ng mga oil producers, ng Big Three, na sila ay may babayaran sa Batangas syndicate. Delikado kasi itong Batangas syndicate (It seems the oil producers, even the Big Three, have accepted that they have to pay the Batangas syndicate. The syndicate is dangerous),” Remulla said.
“Marami na ho namatay dito. May pinapapatay sila kapag sila ay nilalabanan (Many lives have already been lost. They do not hesitate to kill those who oppose them),” he added
With this, Remulla said he has directed the National Bureau of Investigation (NBI) to address the pilfering of fuel.
On Tuesday, DOJ Undersecretary Raul Vasquez said Vasquez said the inter-agency task force investigating the sinking of the three vessels is also looking into whether the tankers involved in the oil spill are involved in oil pilferage.
“It is one of the possibilities that we are looking into,” Vasquez said, adding in all disasters, including oil spill, authorities need to look whether it was intentional, due to negligence, or with connivance.
He also pointed out one of the reasons why authorities want the tankers refloated is to probe the oil they are carrying, adding that oil and oil products passing through Customs have a “marker.”
