Philippine customs Corruption Allegations: Billions in “Grease Money”
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A shocking exposé has emerged from the Philippines, revealing allegations of massive corruption within the Bureau of Customs (BOC). testimony before the House of Representatives implicated high-ranking officials and personnel in a system of bribery that allegedly generated billions of pesos in illicit gains.
Businessman Mark Taguba, during a recent House hearing, painted a picture of a deeply entrenched system of payoffs, known locally as “tara” or “grease money.” He claimed that corrupt BOC officials,notably those within the Customs Command Centre,were profiting immensely from this practice.
Taguba’s testimony detailed his own experiences, stating that before his conviction for drug smuggling in 2017, his business thrived due to his involvement with a group he referred to as the “Davao Group.” This alleged smuggling syndicate, reportedly linked to Davao City Representative Paolo Duterte, son of former President Rodrigo Duterte, demanded a significant “enrollment fee.”
“Ang all-in ko po kasi, P170,000 po (per container). Kasama rin po kasi doon ’yung duties and taxes at shipping line.Umaabot po ako ng 100 (containers) kada isang linggo (The all-in rate is P170,000 per container. This includes duties, taxes and shipping line. I have 100 containers per week),” taguba testified.
Taguba explained that this “all-in” fee ensured the smooth passage of his shipments,bypassing potential delays and harassment.He further elaborated on the system:
“They have the right to hold your container. As a businessman, rather than lose income and go through their lengthy process, you pay grease money via the tara or payoff system to ensure the release of your containers. That is why I said all in,”
Taguba claimed that paying the P5 million “enrollment fee” to the Davao Group guaranteed his shipments were processed through a “green (express) lane,” significantly reducing the usual taxes.
“The only proof that I can give you (that I paid the enrolment fee of P5 million) is that all my transactions are green lane. All my documents, when you compare it to a fair transaction, are with P40,000 tax,”
He described a system where the Customs Command Center held immense power, capable of unfairly delaying or seizing shipments. he recounted his own experiences with harassment, ultimately leading him to the Davao Group.
“I was being harassed and was referred by someone I know – Jojo Bacud – to Tita Nani and they told me they are the most powerful there and that you cannot transact with Customs without being part (of the Davao Group), you cannot have your container released. If you did not give them grease money, you will be harassed, they will hold your container hostage,”
While Taguba admitted he never personally met Paolo Duterte, he firmly believes the widespread “tara” system couldn’t operate without the complicity of those in power. He expressed his bewilderment at the lack of charges against those involved.
“Up until now, I wonder why they were not charged in our case,”
Taguba vehemently denied being a drug smuggler, claiming he was unaware of the narcotics hidden within his shipments. He insisted the packing lists he received did not mention the metal cylinders containing the illegal drugs.
This case highlights the notable challenges in combating corruption, particularly in developing nations. The scale of the alleged bribery and the implications for international trade raise serious concerns. The ongoing investigation and potential ramifications will be closely watched.
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Philippines Customs Corruption: A system of “grease Money” Exposed
A shocking exposé has emerged from the Philippines, revealing allegations of widespread corruption within the Bureau of Customs (BOC). Testimony before the House of Representatives has implicated high-ranking officials and personnel in a system of bribery that allegedly generated billions of pesos in illicit gains.
The Rise of “Tara”: A Bribery System
Senior Editor, World-Today-News: Joining us today is Dr. Cynthia Reyes,a renowned expert on corruption and governance in Southeast Asia. Dr. Reyes, thank you for taking the time to discuss this alarming situation within the Philippine BOC.
Dr. Cynthia Reyes: Thank you for having me. This case is indeed deeply concerning and sheds light on the deeply entrenched problem of corruption within the Philippines. The testimony given before the House, detailing the prevalence of “tara”, or “grease money,” paints a grim picture.
SE: For our readers who might not be familiar with the term, “tara” refers to bribes paid to officials to expedite processes or turn a blind eye to illicit activities, correct?
DR: Precisely. It’s a deeply ingrained practice that undermines the rule of law and creates an uneven playing field for businesses who refuse to participate.
SE: Businessman Mark Taguba, who provided testimony, described a system where “enrolment fees” were required to ensure smooth passage of shipments. He claimed these fees bypassed normal customs procedures and considerably reduced taxes. Can you speak to this aspect of the alleged corruption?
DR: Taguba’s testimony suggests a highly organized system of corruption where specific groups like the so-called “Davao Group” wielded significant influence within the BOC. This
indicates potential collusion at various levels, which enables such a scheme to operate on such a large scale.
High-level Complicity: Questions Remain
SE: Taguba’s testimony notably mentioned the connection between the “Davao Group” and Davao City Representative Paolo Duterte. He claimed this group demanded exorbitant “enrolment fees” to guarantee favorable treatment.
DR:
This alleged link to influential figures raises serious concerns about the extent of high-level complicity within this system. It reinforces the need for a thorough and impartial inquiry that leaves no stone unturned.
SE: Taguba also mentioned feeling pressured into joining the “davao group” due to harassment and the threat of having his shipments delayed indefinitely.
DR: This speaks to the coercive nature of such systems. When businesses are faced with arbitrary delays and threats, they often feel they have no choice but to comply. It creates a climate of fear and undermines fair competition.
SE: Despite these serious allegations, no charges have been filed against those implicated. do you see this as a sign of a larger issue with accountability within the Philippine justice system?
DR: This case highlights the persistent challenge of holding powerful individuals accountable in the Philippines. Weak enforcement of anti-corruption laws and a culture of impunity often allow these practices to flourish.
The Road to Reform: Clarity and Accountability
SE: What can be done to address this deeply rooted problem of corruption within the BOC and beyond?
DR: Enacting robust anti-corruption legislation, strengthening enforcement mechanisms, and promoting transparency are crucial steps. Empowering self-reliant anti-corruption bodies and protecting whistleblowers are also essential to fostering a culture of accountability.
SE: Dr. Reyes, thank you for sharing your insights on this important issue. Your analysis provides valuable context for understanding the complexities of corruption and the urgent need for reform in the Philippines.
DR: It’s a crucial conversation to have, and I hope that the current investigations will lead to meaningful change and a more clear and just system for all.
