Ex-DOF exec convicted anew for tax credit scam

MANILA, Philippines — The Sandiganbayan has sentenced former Department of Finance (DOF) executive director Uldarico Andutan Jr. to up to 60 years in prison in connection with the multibillion-peso tax credit scam in the 1990s.

In a 118-page decision promulgated on May 23, the anti-graft court’s Seventh Division found Andutan guilty of six counts of violation of Section 3 (e) of Republic Act 3019 or the Anti-Graft and Corrupt Practices Act.

He was sentenced to a minimum of six years to a maximum of 10 years in prison for each count of the offense or a total of 36 to 60 years for the six counts. He was also perpetually disqualified from holding public office.

On the other hand, Andutan was acquitted of six counts of estafa through falsification of public or commercial documents due to the prosecution’s failure to prove his guilt beyond reasonable doubt.

Meanwhile, acquitted of both graft and estafa through falsification charges were Andutan’s four co-accused: former DOF tax specialists Purita Napeñas, Charmelle Recoter and Merose Tordesillas and private respondent Danny Ty of Circular Knitting Industries Corp., due to insufficient evidence to prove their participation in the crimes.

Napeñas, Recoter and Tordesillas were previously assigned as tax specialists under the DOF’s One-Stop Shop (OSS) Inter-Agency Tax Credit and Duty Drawback Center.

The court had earlier dismissed the cases against the primary accused, former DOF undersecretary Antonio Belicena, as well as against former DOF tax evaluator Emelita Tizon due to their death.

The charges stemmed from the OSS Center’s issuance of six tax credit certificates (TCCs) totaling P17.21 million in favor of Circular Knitting in 1997.

The Office of the Ombudsman, which filed the charges in 2012, said the TCCs were granted to Circular Knitting even if the company was not qualified for tax incentives.

The ombudsman cited the Omnibus Investment Code, which states that only Board of Investments-registered companies engaging in domestic production or manufacture of products for export shall be entitled to tax credits.

The ombudsman said Circular Knitting submitted several falsified documents such as schedule of