By Perfecto T. Raymundo Jr.
MANILA — BIR Commissioner Romeo D. Lumagui, Jr., on Thursday (Nov. 6) filed criminal complaints before the Department of Justice (DOJ) against Henry Condecido Alcantara, Brice Ericson Diaz Hernandez, and Jaypee de Leon Mendoza.
“We conducted a lifestyle check on Alcantara, Hernandez, and Mendoza. These 3 ex-DPWH officials had lavish lifestyles. We discovered ₱1.6 billion in income tax deficiencies alone after investigating their financial transactions, properties, business interests, and tax returns of the aforementioned individuals. This is a clear case of tax evasion,” Commissioner Lumagui said.
The BIR probe showed that the officials derived significant income from so-called “proponents’ shares” or kickbacks from ghost flood-control projects, which they allegedly laundered through casino gambling.
Through Philippine Amusement and Gaming Corporation (PAGCOR) and casino records of the three aforementioned individuals, the BIR confirmed that the aforementioned individuals exchanged cash for casino chips grossly disproportionate to their declared sources of income.
Further examination of BIR, Land Registration Authority (LRA), and Land Transportation Office (LTO) records showed that the officials acquired luxury vehicles, high-value properties, and other personal assets also grossly disproportionate to their declared sources of income.
“The SALNs and tax returns of Alcantara, Hernandez, and Mendoza cannot justify their lavish lifestyle. Their casino records, properties, financial transactions, and business interests are grossly disproportionate to their declared sources of income. We will continue investigating government officials with direct evidence linking them to anomalous flood control projects. This is the 2nd batch of criminal cases filed in relation to this issue. As of now, we have filed a total of 10 criminal cases, with Php 8,860,269,333.36 in total tax liability. Expect more tax cases to be filed,” Lumagui said.
The three former government officials committed tax evasion and willful failure to file and willful failure to supply correct and accurate information in their income tax returns.
This is in violation of Sections 254 and 255, in relation to Sections 24(A)(1)(a), 51(A)(1)(a) and 74(A) of the National Internal Revenue Code of 1997, as amended.
The case was made possible through a whole-of-government approach.
The hearings of both Houses of Congress, were integral to the investigation.
The Statement of Assets, Liabilities, and Net Worth (SALNs) of the aforementioned individuals were acquired from the Department of Public Works and Highways (DPWH).
The properties, financial transactions, and other pieces of evidence showcasing their lavish lifestyle were pieced together through the help of the Independent Commission on Infrastructure (ICI), Anti–Money Laundering Council (AMLC), LRA, LTO, PAGCOR, and licensed casinos. ###
