After Pacman, Cedric Lee in BIR radar

Malou Apalisok

The mauling of comedian and television host Vhong Navarro in the hands of businessman Cedric Lee and five other men has generated a lot of funny Internet memes.

Memes are ideas, styles and actions or humorous messages combined with images that are mimicked and spread in the Internet and social media. Most memes are original and bizarre, like planking, an activity wherein the player mimics the position of a wooden plank. Memes spread cultural and political satires and in the current Philippine setting, the Vhong Navarro-Deniece Cornejo-Cedric Lee controversy is easily the most popular and favorite issue that brings out the creative juices of meme artists.

One funny meme I came across lately had Cedric Lee boasting, “Marami akong negosyo” (I own many companies)! Below the picture and statement is the image of Bureau of Internal Revenue Commissioner Kim Henares reacting to the businessman’s crowing, “Mayaman ka pala ha” (So, you’re rich)! This is followed by the picture of world boxing champion and Sarangani Congressman Manny Pacquiao with the words, “Patay ka diha, dong” (You’re dead, pal)!

As we know, Pacman has problems with the internal revenue, not only in the Philippines but also in the United States. The BIR is suing him for allegedly not paying the correct taxes in 2008 and 2009. In the US, Pacman is said to owe the Internal Revenue Service US$18.3 million in taxes. The boxing champ denies he is a tax evader but the jury is still out in this case, so to speak.

In the words of lawyer Harry Roque, by now only Filipinos living in another planet do not know the controversy involving Vhong, Deniece and Cedric so let me skip the background of the case and focus on why BIR Commissioner Kim Henares has developed a keen interest on whether or not Cedric Lee is tax compliant.

Apparently, the attention of the BIR lady boss was caught by media reports that Lee owns numerous business corporations and has associates who were former ranked officials of the Philippine National Police.

An ABS-CBN report said that  Lee is listed in 14 corporations registered with the Securities and Exchange Commission. The news article also linked Lee to Tyrone Ong, another businessman who is also said to be well-connected in the police agency.

I can imagine that upon hearing the name Tyrone Ong, a bell rang in Commissioner Kim Henares’ consciousness because this is the same businessman implicated in the 2008 “euro generals’ scandal,” so named because a top police official was caught and detained by Russian immigration authorities in Moscow International Airport for carrying undeclared cash amounting to 105,000 euros or roughly P6.9 million.

The case later pointed to the questionable disbursement of P10 million allegedly drawn from the PNP intelligence fund used for the working visit of PNP echelon to St. Petersburg, Russia. The incident put to shame the Philippine government, raised questions where the money came from and prompted the Senate to initiate an investigation in aid of legislation.

In the course of the Senate probe, a businessman came forward to claim that he owned one-third of the euro cache found in the possession of de la Paz.  The businessman’s name was Tyrone Ong, sometimes referred to as Tyrone Ong Arejola, said to be a rich friend of the then PNP comptroller. Ong was described in media reports as a businessman familiar with the procurement system of the PNP because he is head of Enviroaire, a supplier of the police agency.

Ong had testified before the Senate hearing that he asked De La Paz to buy him (Tyrone Ong) a pricey watch worth P2.9 million in Russia. Of course, the testimony was nothing but palusot to save the police official.

The “euro generals’ scandal” was not the trigger for the BIR to look into the tax compliance of Ong.  Rather, it was a routine request by the Commission on Audit to the BIR to certify that the PNP issued two sales invoices to Enviroaire in the amount of P225.71 million as payment for the spare parts the company supplied for the repair and maintenance of the police agency’s light-armored vehicles.

That’s how BIR Commissioner Kim Henares found out about the tax liability and thereafter filed tax evasion charges against the well-connected businessman. Owing to the failure and delay in paying the correct taxes, the businessman was slapped with a tax assessment of P184 million.

What the BIR will discover in so far as Cedric Lee’s tax grade is concerned will be very interesting. However, suffice it to say that no one, let alone Lee, expected Vhong Navarro’s complaint  would lead to the BIR knocking on the door of the businessman.
I find it odd that Tyrone Ong and the “euro generals’ scandal” is being mentioned in the Vhong Navarro case because last month, the Office of the Ombudsman filed multiple graft and malversation charges against nine active and retired officials of the PNP before the Sandiganbayan for their involvement in the “euro generals’ scandal.”
The indictment of PNP officials Eliseo de la Paz, then chief for comptrollership; Emmanuel Carta, then deputy chief for operations; Ismael Rafanan, then chief of the directorial staff; Romeo Ricardo, then director for plans; German Doria, then director for human resources and doctrine development; and Jaime Caringal, then Region 9 director, retired chief superintendent Orlando Pestaño and Senior Superintendents Samuel Rodriguez and Tomas Rentoy III is an affirmation of an earlier decision of the anti-graft body after hearing and junking the motions for reconsideration filed by the respondents.