The illegal tobacco trade in the country would not thrive without the protection of some “rogue” government officials, Department of the Interior and Local Government (DILG) Secretary Juanito Victor “Jonvic” Remulla said on Friday, Feb. 20.

In a press briefing, Remulla revealed that Chinese nationals typically operate the machines used in unlicensed tobacco manufacturing, bringing in the equipment from their country.

“We tested the tobacco and it appears to have come from a single source in Southeast Asia. This would not have happened without protectors. It is impossible for these illegal tobacco operations to exist without them. I am certain that someone high up in the government is involved, and we will not stop until we identify them and shut down all their operations,” he said.

Authorities are initially targeting the manufacturers of the illegal tobaccos seized during recent operations, and Remulla admitted that tracking the financial links of the raided factories remains the most difficult part.

“Once we file charges against them, we will coordinate with the Anti-Money Laundering Council (AMLC). We will trace where their accounts lead and where the money went. That is where we will surely uncover who is really behind this,” he said.

Remulla acknowledged that illegal tobacco products are sold nationwide.

“This is happening throughout the Philippines—from Luzon to Mindanao. We conducted scoping operations and inspected stores, including sari-sari stores, and many of them were selling illegal cigarettes. When we asked where they sourced them, they said they got them from the local markets,” he said.

He explained that from the factory, the illegally manufactured cigarettes go directly to distributors, who then deliver the products to markets and eventually to sari-sari stores.

“That is the entire ecosystem of the illegal tobacco trade,” Remulla emphasized.

The DILG chief announced intensified operations following the dismantling of a suspected illegal cigarette manufacturing and storage facility in Barangay Sahud-Ulan, Tanza, Cavite, on Feb. 19.

He commended the Philippine National Police (PNP) CALABARZON through the Regional Intelligence Division, S2 Cavite, and the Tanza Municipal Police Station.

He also lauded the Criminal Investigation and Detection Group Cavite, the Bureau of Customs, the Armed Forces of the Philippines, the Bureau of Fire Protection, and the Local Government Unit of Tanza for the successful operation.

The facility, registered as Cavite South Luzon Steel Management and declared as a canned goods storage site, drew suspicion after a citizen reported a strong tobacco odor.

“Surveillance confirmed cigarette manufacturing, prompting a Bureau of Customs inspection,” Remulla said.

Authorities seized cigarette manufacturing machinery, industrial generators, a forklift, sacks of dried tobacco, packaging materials, raw cigarette components, alleged counterfeit finished products bearing various brand names, and boxes of Fresh Tobacco Square sets.

The Bureau of Customs estimated the total value of the contraband at P200 million.

The suspects face charges under Republic Act 10863, or the “Customs Modernization and Tariff Act,” and Republic Act 12022, known as the “Anti-Agricultural Economic Sabotage Act.”

“The operation is part of the DILG’s nationwide campaign against illegal tobacco,” Remulla said.

“We will not stop until these illegal tobacco operations end. Illegal tobacco affects every Filipino. Every time someone buys or distributes illegal cigarettes, fellow Filipinos are deprived of much-needed assistance,” he added.

Remulla said P30 billion in government healthcare taxes are lost to illegal cigarette operations, which are a grave offense under the Anti-Agricultural Economic Sabotage Act.

In comparison, he said that a genuine pack of Marlboro cigarettes sells for P180 while counterfeit brands are priced as low as P80 per pack.

“That is where the money goes. In the last two months, the Bureau of Internal Revenue’s collections increased by 24 percent. This means our operations are effective,” Remulla said.

He warned illegal cigarette retailers to improve their business practices as widespread operations will continue next week.

“We have already caught the distributors. We have already apprehended the manufacturers. The retailers are next,” Remulla concluded.