BIR CHIEF ACCUSED OF ECONOMIC SABOTAGE, PLUNDER BY SOLONBillions of pesos on tax revenues lost in Fort Bonifacio tax scam; uncontested tax cases
THE government paid P1.18 billion for documentary tax liabilities of a big real estate development company and is bound to lose another P6 billion in 19 tax cases which the Commissioner of the Bureau of Internal Revenue is allowing to lose by default to a conglomerate where he once worked as vice president for finance and chief tax consultant.
The BIR has lost two of the 19 cases against Fort Bonifacio Development Corporation (FBDC) because of the failure of BIR Commissioner Rene Bañez to appeal the decision of the Court of Tax Appeals.
Representative Aniceto G. Saludo, Jr. of Southern Leyte and a ranking leader of the ruling majority party in the House of Representatives, in a privilege speech yesterday accused BIR Commissioner Rene Banez of economc sabotage, plunder and gross violations of the law as he urged for the immediate ouster of the BIR chief.
Saludo in his expose said Banez was a senior vice president of the Fort Bonifacio-Metro Pacific-PLDT conglomerate led by controversial businessman Manuel Pangilinan prior to rejoining the BIR as commissioner under the Arroyo administration.
Saludo said his recent exposes on the dismal failure of the BIR to collect targetted tax revenues and its monumental shortfall amounting to P33.4 billon for the first half of the year alone provide ample reason for the President to fire Bañez immediately.
“This is the first time in two decades that the BIR shortfall is double digit. This is the worst record of the BIR in the post-war era,” Saludo said.
Saludo minced no words in attacking Bañez in the House floor. “ Commissioner Bañez stands guilty not only of ignorance or incompetence. He is a scoundrel and a highwayman, and I have proofs of his dirty deeds at BIR,” Saludo said.
Saludo said the Dominga Manalili tax fraud case was a picnic compared to the economic sabotage and plunder charges that await Bañez before the courts. He cited the following:
· Proof of 19 tax refund cases filed by the Fort Bonifacio Development Authority amounting to a total of P6 billion at the Court of Tax Appeals where the government is bound to lose its case.
Two of these cases involving millions worth of tax revenues, Saludo said, were already decided by the CTA in favor of FBDC. The BIR, under Bañez did not appeal the decision, hence, it became final and executory, Saludo explained.
This is plain and simple economic sabotage.Not mere derelicton of duty alone given the professional linkages of Bañez with the beneficiary company involved in the tax refund case.
Saludo exlained that “Bañez was like the government prize fighter in the boxing ring who hit the canvas even before any blow was delivered by his opponent. In basketball, it was like Bañez hitting the crucial winning shot at his opponents basket.”
· Proof that it was during Bañez term as BIR Commissioner that the zonal valuation of land at the Fort Bonifacio Gobal City project was reduced from P100,000 to P30,000 per sq. meter. This was very much undervalued, Saludo pointed out, because that same land was purchased under a public bidding from the government at P33,000 per sq. meter when it was then undeveloped, raw land.
· Proof of reduced or declining income tax payments by PLDT and Smart Communications in spite of published reports of windfall, record-breaking income and profits by these telecom companies.
Saludo said PLDT only paid P950 million in taxes last year, a huge disparity from reported incomes in their glossy and slick, annual report.
· Proof in the form of a Special Allotment Order (SARO) to prove the collusion between Bañez and some key business interests which clearly undermined tax collection efforts and perpetrated economic sabotage.
Saludo explained that the SARO in his possession showed how P1.18 billion of taxpayers money was used to pay for the documentary tax liabilities of FBDC for book purposes only. The SARO, he said, was intended to technically condone FBDC’ documentary tax liabilities.
· Proof that Bañez, a public official holding a very sensitive position, was in Hongkong with his former colleagues led by his erstwhile boss Manuel Pangilinan during the height of the First Pacific-PLDT- Gokongwei Group controversy over the sale of the Fort Bonifacio project and PLDT to Summit Holdings of John Gokongwei by the Salim Group.
Saludo said video clips and photos of Bañez involvement in these transactions only prove that he continues to be a “henchman” of Pangilinan and the FBDC-PLDT group.
· Proof of blatant violations of Civil Service rules by filling up occupied positions at the BIR to favor individuals. Saludo cited in particular a certain Rommel Magno who was appinted by Bañez to a position that had been held by a bona fide employee with 32 years of service to the BIR. Magno is the brother of UP Professor Alex Magno who, inciedntally, also sits at the DBP board.
· Proof that Bañez openly defied and blatantly disregarded Comelec regulations banning the transfer or movement of employees and officials of the BIR during the 2001 elections. Bañez implemented a reorganization program inspite of the Comelec prohibition, Saludo said.
As a result, the Comelec legal department ruled that Bañez’ actions were illegal and sought the Commission en banc to file charges in court against Bañez and to restore to their original posititons and places of assignment all the affected officials and employees affected by Bañez unauthorized reorganizatiuon of the BIR.
Saludo said Bañez failures at the BIR especially in tax collections will be exacting a heavy toll on the welfare programs of the Arroyo administration specially for the urban and rural poor families.
This year’s record revenue collection shortfall even at the first half of the tax period only would result in tremendous welfare losses that would hit the poorest sectors in the country like:
1. 40,000 new low cost housing shelters for urban and rural poor, lost. 2. 20,000 new public schools to educate our youth, unbuilt. 3. Free textbooks for more than 10 million schoolchildren lost. 4. The minimum food and caloric requirements for 5 million pre-school children, unsecured. 5. Enough funds to accomplish the land reform program, lost. 6. One millions jobs for the unemployed, foregone.
Saludo said charges should be filed against Bañez, other government officials and private sector businessmen who had conspired with each other to carry out the P1.18 billon Fort Bonifacio SARO tax scam, the FBDC tax refund cases and the undervaluation of Fort Bonifacio Global City zonal land values.
Similarly, he said the expects the Comelec to pursue administrative and criminal cases against Bañez for the 2001 election ban violations he perpetrated at the BIR.
(Released on July 31, 2002)
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