THE Sandiganbayan has convicted Uldarico Andutan Jr, former deputy executive director of the Department of Finance’s One-Stop-Shop Inter-Agency Tax Credit and Drawback Center (Center) of five counts of graft in connection with alleged fraudulent issuance of tax credit certificates (TCCs) to textile companies from 1995 to 1996.
For each count, the accused was meted six to 10 years imprisonment, or a total of 30 to 50 years with perpetual disqualification from holding public office.
However, he was acquitted on five separate charges of estafa through falsification of public documents.
The cases stemmed from the findings of the Special Presidential Task Force 156 created by former President Gloria Arroyo to investigate the approval and release of P228.36 million worth of TCCs in favor of companies owned by spouses Faustino and Gloria Chingkoe.
For the five graft and five estafa cases, the company involved was identified by prosecutors as Filstar Textile Industrial Inc.
In a 32-page decision penned by Associate Justice Georgina D. Hidalgo, the anti-graft court’s Seventh Division held that by reason of his higher position, Andutan was expected to act with more prudence and care in handling the applications for TCCs. Hence, he should have stopped Filstar’s fraudulent claims.
It pointed out that as deputy executive director, his approval was the last step before an applicant firm can be considered eligible for grant of TCC.
“Evidently, accused Andutan Jr.’s palpable recommendation and approval opened the proliferation of the tax scam. Andutan Jr. failed to safeguard the mandate and the very purpose of the tax simplified system for the availment of tax credits and duty drawbacks, a failure that has serious consequences for the government,” the Sandiganbayan said.
Associate Justices Ma. Theresa Dolores C. Gomez-Estoesta and Zaldy V. Trespeses concurred.
However, the court cleared three other DOF-Center executives of any criminal liability noting that their participation did not accord them any discretionary power on the approval or denial of TCC applications.
Acquitted were reviewer Asuncion Magdaet and evaluators Charmelle Recoter and Merose Tordesillas.
“The tasks of Magdaet, Recoter, and Tordesillas were merely centered on the determination of the completeness but not the authenticity of all the documents submitted for the tax credit claim, based on the checklist of documentary requirements provided,” the court said.
Two other defendants from DOF, Center executive director Antonio Benicena and Emelita Tizon, died while the case was on trial, resulting in the dismissal of cases against them.
However, cases against private defendants Faustino Chingkoe and Gloria Chingkoe as well as DOF-Center officers tax specialist Rowena Malonzo and evaluators Anabelle Dino and Gregoria Cuento-Evangelio, who remain at large were ordered archived.
