PASG RAID ILLEGAL
October 14, 2008
When the Presidential Anti-Smuggling Group (PASG) on 13 October 2008 raided the Terminal of Oilink in Mariveles, Bataan, PASG did not have any search warrant or mission order. Led by PASG USEC Antonio Villar and suspended District Collector Edward Baltazar, the PASG said that the “raid was conducted to prevent illegal withdrawal of petroleum products because these did not pass through the District Collector of Limay.”
However, Oilink Chief Counsel, Atty. Raymond Zorrilla said in a presscon that “All taxes and duties on the shipments have been paid and the appropriate clearances and release orders were issued by no less than the Commissioner of the Bureau of Customs. How can there be an illegal withdrawal.”
Now it seems that PASG is singing a different tune. Baltazar now said that the raid was based on unpaid taxes of Oilink. “Unioil and Oilink are owned by one person and we have pierced their veil of corporate entity.” “Oilink owes the government P2.7 Billion in taxes and by piercing the veil of corporate entity, Unioil should also be held liable for that amount and their products seized to satisfy the unpaid taxes.”
“Oilink has no tax evasion case nor is it a party to a smuggling case worth 2.7 Billion. Complaints filed against it by the BOC, PASG, and RATS have been dismissed by the DOJ and the Court of Tax Appeals” declared Zorrilla. “The PASG is mistaken. The 2.7 Billion is not a matter of unpaid taxes. It is an administrative fine imposed by PEAG and the Legal Service of the BOC for the mere delay to provide them a number of documents. We have questioned such fine for being contrary to law and the terms and conditions approved by the Finance Department.” Zorrilla added.
The matter of the P2.7 Billion is still pending with the BOC and a ruling has to be finally made whether to impose the said administrative fine. It cannot yet be enforced and thus the PASG has no legal right to raid the facility based on that.
It appears that Collector Baltazar has appropriated for himself the role of the judiciary when he solely declared that Oilink and Unioil are one and the same in order to justify the illegal raid. “By making a unilateral decision that Unioil and Oilink are one and the same, without the basis of a court ruling, the raiding team illegally seized the products of Unioil allegedly to satisfy the obligation of Oilink.” Zorrilla ended.
Based on records, Collector Baltazar was suspended by the Ombudsman in connection with an extortion case filed against him during his stint as District Collector of San Fernando, La Union. The Finance Department and the BOC has already implemented the suspension.
Oilink is a Top 100 Corporation and despite its new presence in the industry has paid around P1.7 Billion in taxes for 2007 alone. It is likewise featured in the internationally acclaimed edition of Businessweek this October where it encourages foreign investors to follow the path of Oilink and invest in the Philippines.
by:
Leah Flor
Corporate Communications Officer
Unioil Group of Companies