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  • Petrochem firm clarifies smuggling
    case vs Teves at CA
     
    By B. Fernandez
    Reporter

    THE National Petrochemical Alliance (NPC), which owns a Bataan-based polyethylene plant put up by businessman William Gatchalian and his Iranian partners, took up the cudgels for Finance Secretary Margarito Teves whose confirmation by the Commission on Appointments got snagged for allegedly allowing the firm to import generators without paying taxes and duties worth P300 million.

                    In a statement furnished to members of the Commission, the NPC Alliance clarified that the charges aired by a “disgruntled” finance department officer implicating Secretary Teves in the alleged smuggling of heavy-duty generators from Singapore through the Subic Freeport was without factual basis.

                    “The allegations of Ruben Frogoso, a disgruntled intelligence officer of the Department of Finance who was suspended for failing a lifestyle check, is absurd and absolutely devoid of any basis in fact,’’ the Alliance said. “To link Secretary Teves to the alleged irregularity is most unfair and betrays sinister hands are at work and determined to undermine his integrity and block his confirmation by the Commission on Appointments.’’

                    According to the NPC Alliance, it could not be accused of smuggling because the generators were to be used to provide power for the Bataan polyethylene plant on a temporary basis and that these were to be reexported back to Singapore shortly.

                    It added that “the NPC Alliance Corporation is a Board of Investment (BOI)-registered pioneer industry and thus it enjoys a 6-year tax holiday and tax exemption on capital equipment, including unlimited consignment of capital goods for its temporary use.’’

                    “The generators and the accessories that were imported and consigned to NPC Alliance Corp. were for temporary use only and would be reexported back to Singapore as soon as NPC Alliance could reconnect to the Substation of Team Energy [formerly Mirant] for its power requirements. Mirant earlier refused to provide power to a company that had Iranian interest. The change in ownership from Mirant to Team Energy enabled NPC Alliance to finally reconnect with the substation for its power consumption,’’ NPC said.

                    It explained that “the customs broker used by the company to handle the importation of the generators set was reportedly given authority to expedite the customs release of the generator since the Iranians are not conversant with nor knowledgeable about the ramifications and customs rules and regulations on the importation of the generators.’’

                    Alliance officials asserted it was obvious that Frogoso, in raising the smuggling issue against Teves, wanted to get back at the Finance Secretary and derail his confirmation by the Commission.

                    They noted that Frogoso filed the complained against Secretary Teves at the CA after the Ombudsman ordered his suspension from service in July for various irregularities, including discrepancies in his Statement of Assets and Liabilities and Net Worth which ballooned to P6.048-million in his first 15 months in service even as his salary then was only P109,452 a year.

                    The Alliance added it was the DOF’s Revenue and Protection Service (DOF-RIPS) that filed the complaint against Frogoso for allegedly acquiring properties that were out of proportion with his salary; and for failing to declare his SALN for 2001, 2003 and 2004.

                    In suspending Frogoso last July, Chief Ombudsman Merceditas Gutierrez found “strong indication” that Frogoso, an Intelligence Officer II at the  Central Management Information Office (CMIO) of the DoF, violated Republic Act 6713 or the Code of Conduct and Ethical Standards for Public Officials and Employees and committed dishonesty and misconduct.

                    It was learned that Frogoso was initially employed at the defunct Economic Intelligence and Investigation Bureau (EIIB), an agency under the DoF, on September 16, 1998 , as Intelligence Officer I with an annual salary of P109,452. After the abolition of the EIIB, Frogoso was absorbed at the DoF-CMIO where he was appointed Intelligence Officer II with annual salary of P152,004.

                    Records obtained by the Ombudsman showed that Frogoso’s total networth as of December 31, 1999, or barely 15 months at the EIIB, as declared in his SALN for 1999 was P6.048-million, “despite the fact that he was only earning P109,452 per annum.” 

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