The Bureau of Customs (BoC), in a complaint submitted to the Justice department, claimed Phoenix Petroleum Philippines, Inc. had defrauded the government via non-payment of excise and value-added taxes as well as non-submission of import documents.
Charged under the Run After the Smugglers (RATS) program was Phoenix Petroleum President and CEO Dennis Ang Uy. Jorlan Capin Cabanes, a Davao-based Customs broker, was also included in the charge sheet alleged collusion, the BoC said in a statement.
Customs Commissioner Angelito A. Alvares said the case was build after the bureau discovered that nine import entries did not match a report by a government-contracted surveyor.
Customs Deputy Commissioner Gregorio B. Chavez said further investigations found that about P459 million worth of petroleum products were imported by the company between June and December last year without any supporting documents.
Various imported products worth around P4.7 billion were also reportedly taken out of the Port of Davao and the sub-port of Bauan, Batangas between last June and this April despite the firm’s failure to submit required documents such as invoices and bills of lading.
Phoenix Petroleum, said Mr. Chavez, owes the government P5.144 billion.
Mr. Alvarez ordered an audit of importations made by Phoenix Petroleum prior to June of last year, saying the company’s liability could still increase.
Raymond T. Zorilla, assistant vice-president for external affairs at the oil firm, denied the allegations.
“We are confident that there is no basis and we have complete documents of our transactions. We have complied with all the requirements of Customs,” he told BusinessWorld yesterday.
In a statement, Phoenix Petroleum described the accusations as “unjust, arbitrary and oppressive,” also claiming that “the company is among the top taxpayers in Davao City where it is based.”
“The company does not take this accusation lightly and is currently consulting legal counsel on all possible courses of actions.”
The company reported revenues of P6.1 billion during the first quarter of this year, 122% higher than the P2.75 billion it made a year ago. Its shares ended yesterday at P13 per, down from Wednesday’s P14.10. — Diane Claire J. Jiao with a report from Joel B. Escovilla in Davao City