The Bureau of Internal Revenue (BIR) on Thursday filed criminal complaints against three former officials of the Department of Public Works and Highways (DPWH), alleging P1.6 billion in income tax deficiencies linked to a lavish lifestyle and alleged kickbacks from ghost flood-control projects.
The complaints were filed before the Department of Justice (DOJ) against former DPWH officials Henry Condecido Alcantara, Brice Ericson Diaz Hernandez and Jaypee de Leon Mendoza.
This follows a directive from President Ferdinand Marcos Jr. to hold those involved in flood control project irregularities fully accountable.
BIR Commissioner Romeo Lumagui Jr. said a lifestyle check on the three ex-officials uncovered P1.6 billion in income tax deficiencies after investigating their financial transactions, properties, business interests and tax returns.
Lumagui described the case as a “clear case of tax evasion.”
The BIR said its investigation revealed that the officials allegedly derived significant income from “proponents’ shares” or kickbacks from fraudulent flood-control projects, which they purportedly laundered through casino gambling.
Records from the Philippine Amusement and Gaming Corp. (PAGCOR) and casinos confirmed that the three men exchanged cash for casino chips in amounts grossly disproportionate to their declared sources of income.
Further checks with the BIR, the Land Registration Authority (LRA) and the Land Transportation Office (LTO) showed the officials acquired luxury vehicles, high-value properties and other personal assets that were also grossly disproportionate to their declared sources of income.
“The SALNs [Statement of Assets, Liabilities, and Net Worth] and tax returns of Alcantara, Hernandez, and Mendoza cannot justify their lavish lifestyle,” Lumagui said.
He said the officials’ casino records, properties, financial transactions, and business interests are grossly disproportionate to their declared sources of income.
The three former officials are accused of tax evasion, willful failure to file and willful failure to supply correct and accurate information in their income tax returns, in violation of the National Internal Revenue Code of 1997, as amended.
This represents the second batch of criminal cases filed by the BIR related to the anomalous flood control projects.
The BIR said it has filed 10 criminal cases, with a total tax liability of P8,860,269,333.36.
Lumagui said more tax cases are expected to be filed against government officials with direct evidence linking them to the anomaly.
The investigation was a collaborative effort involving a “whole-of-government approach,” utilizing information from hearings in both houses of Congress, he said.
The BIR said it received help from the Department of Public Works and Highways (DPWH) for the officials’ SALNs, and from the Independent Commission on Infrastructure (ICI), Anti–Money Laundering Council (AMLC), LRA, LTO, PAGCOR and licensed casinos to piece together evidence of the officials’ properties, financial transactions and lavish lifestyles.
