To ensure that those involved in the alleged flood control anomalies are held fully accountable under the law, Bureau of Internal Revenue (BIR) Commissioner Romeo D. Lumagui Jr. on Wednesday, 6 November, filed tax evasion complaints before the Department of Justice (DOJ) against several former Department of Public Works and Highways (DPWH) engineers.

Charged were Henry Condecido Alcantara, Brice Ericson Diaz Hernandez, and Jaypee de Leon Mendoza, following lifestyle checks that revealed substantial discrepancies between their declared income and actual assets.

“We conducted a lifestyle check on Alcantara, Hernandez, and Mendoza. These three ex-DPWH officials maintained lavish lifestyles. We discovered P1.6 billion in income tax deficiencies alone after investigating their financial transactions, properties, business interests, and tax returns. This is a clear case of tax evasion,” Commissioner Lumagui said.

The BIR’s investigation found that the engineers’ luxurious lifestyles were allegedly funded through so-called “proponents’ shares” or kickbacks from ghost flood control projects, which were reportedly laundered through gambling activities.

Records from the Philippine Amusement and Gaming Corporation (PAGCOR) and various casinos, corroborated by the BIR, showed that the individuals exchanged gambling chips far beyond their declared sources of income.

Further investigation by the BIR, Land Registration Authority (LRA), and Land Transportation Office (LTO) revealed that the officials had acquired luxury vehicles, high-value real estate, and other personal assets inconsistent with their reported earnings.

“The SALNs and tax returns of Alcantara, Hernandez, and Mendoza cannot justify their lavish lifestyle. Their casino records, properties, financial transactions, and business interests are grossly disproportionate to their declared sources of income. We will continue investigating government officials with direct evidence linking them to anomalous flood control projects,” Lumagui added.

“This is the second batch of criminal cases filed in relation to this issue. So far, we have filed a total of 10 criminal cases involving a combined tax liability of P8,860,269,333.36. Expect more tax cases to follow,” he said.

The three former DPWH officials face charges of tax evasion and willful failure to file and supply correct and accurate information in their income tax returns, in violation of Sections 254 and 255, in relation to Sections 24(A)(1)(a), 51(A)(1)(a), and 74(A) of the National Internal Revenue Code of 1997, as amended.

According to the BIR, the case was built through a whole-of-government approach. The investigation drew heavily from congressional hearings, while the officials’ Statements of Assets, Liabilities, and Net Worth (SALNs) were obtained from the DPWH. Supporting evidence, including financial records and property acquisitions, was gathered in coordination with the Independent Commission on Infrastructure (ICI), the Anti-Money Laundering Council (AMLC), LRA, LTO, PAGCOR, and licensed casinos.