Crew of 2 ships tagged in ‘paihi' modus in Navotas Port to face raps

The Office of the City Prosecutor in Navotas City recommended the filing of charges against the 23 crew of MT Tritrust and MT Mega Ensoleilee for transporting unmarked fuel in commercial quantity.

The BOC has initiated inquest proceedings with the Office of the City Prosecutor of Navotas City against the crew members of MT Tritrust and MT Mega Ensoleilee (BOC). 

The crew of the two fuel tankers were caught by the Bureau of Customs (BOC) in the act of illegally transferring smuggled fuel at the Navotas Port.

The MT Tritrust was caught transporting 320,463 liters of unmarked diesel fuel, while the MT Mega Ensoleilee had 39,884 liters of unmarked diesel fuel.

According to the inquest resolution from the Office of the City Prosecutor in Navotas City dated September 21, 2024, the prosecutor found reasonable grounds for the filing of the criminal charge against the crew of the two fuel tankers in violation of Section 265-A of National Internal Revenue Code (NIRC), as amended by Section 80 of Republic Act 10963, or the Tax Reform for Acceleration and Inclusion (TRAIN) law.

The Resolution, which recommended the filing of the cases against the 23 crew of both vessels, took note of the failed fuel marking results initiated by the BOC.

“There is prima facie evidence and reasonable certainty of conviction in this case,” the resolution read.

Under Section 80 of Republic Act No. 10963 (TRAIN law) that amended 265-A of the NIRC,  persons found to be engaged in the sale, trade, delivery, distribution, or transportation of unmarked fuel will be fined P2.5 million for the first offense, P5 million for the second offense, and P10 million for the third offense, as well as the revocation of license to engage in any trade or business.

BOC-CIIS Director Verne Enciso assured that the BOC and the Department of Justice (DOJ), will continue to run after fuel smugglers and anyone involved in the illegal transfer of fuel or the "paihi" system.

“We’ve been monitoring these illegal activities for some time now and gathered the needed information not only to catch these perpetrators but to make sure that appropriate cases are filed against them. We are coordinating with other relevant agencies to stop those involved in this modus,” he said.

A preliminary investigation for additional charges of violation of Section 1401 of the Customs Modernization and Tariff Act (CMTA) for unlawful importation will be conducted against the owner, manager, and/or corporate officers of Megapower Petroleum and Shipping Corporation.

According to Intelligence Group Deputy Commissioner Juvymax Uy, the company will possibly face charges in relation to violations of Section 1401 of the CMTA.

“A subpoena will be issued to the Securities and Exchange Commission to submit the latest GIS, or general information sheet, of Megapower Petroleum. This will jumpstart the prosecutor’s investigation into the company and its activities relating to their possible involvement in the paihi system,” he explained

The smuggled fuel from both tankers was estimated to be more or less worth P20,350,000.