P400M illegal cigarette factory shut down in Pampanga; 6 Chinese nabbed

Authorities have shut down an illegal cigarette manufacturing facility in Mexico, Pampanga capable of producing up to P150 million worth of cigarettes daily, Interior and Local Government Secretary Jonvic Remulla said Thursday.

Remulla, together with Philippine National Police chief Jose Melencio Nartatez and Bureau of Customs Commissioner Ariel Nepomuceno, led a press briefing at the raided site operated under Samyoung Global Enterprises in Barangay Panipuan.

The operation resulted in the arrest of six Chinese nationals and 63 Filipino workers, as well as the seizure of about P400 million worth of smuggled cigarettes and manufacturing equipment.

Remulla said the six Chinese suspects are accused of forcing at least 65 Filipinos to work under “inhumane” conditions.

“Rescued po sila. sila yung victims ng human trafficking. Wala pa kaming nakikitang lease contract mula sa mga Chinese naman na manufacturer kaya liable din yung may-ari ng lupa yung Samyoung saka incorporators,” Remulla said.

The Filipino workers, composed of 54 men and 11 women, were allegedly recruited with the promise of a P15,000 monthly salary but were not paid, Remulla said.

“Hindi binabayaran ang sweldo. Pinangako na babayaran ang sweldo nila. Almost inhuman conditions ang barracks na binigay sa kanila. Ang tawag doon involuntary servitude,” he added.

Authorities conducted a walkthrough of the workers’ living quarters, which were located in a grassy area of the compound and built only with wooden planks and corrugated metal roofing.

“Walang bintana… Isang ilaw lang. Walang electric fan. Nasa papag lang nakahiga,” Remulla said.

He also pointed to an area where rejected cigarettes were allegedly burned and disposed of. The rescued workers are now receiving government assistance, he added.

Remulla said authorities confiscated three cigarette manufacturing machines and two packing machines capable of producing an estimated P150 million worth of cigarettes daily, or P4.5 billion monthly.

According to Remulla, the primary Chinese operator arrived in the Philippines as a tourist in March last year, followed by five others in December. Operations reportedly began in early January.

Remulla also disclosed that Samyoung Global Corp. has three Filipino and two Korean incorporators.

“So far but we are looking deeper into the entire structure ng kumpanyang ito. We suspect there are 10 other manufacturing sites all over the country. May intelligence na kami at unti unti na namin nilalapitan pero it will come in the next few days or next few weeks ay makukuha na namin lahat yan,” he said.

Criminal Investigation and Detection Group Director Maj. Gen. Robert Alexander Morico II said one of the Filipino incorporators has already been subpoenaed, with others to follow.

Morico added that the six Chinese suspects were placed under inquest proceedings for violating Republic Act No. 9208, or the Anti-Trafficking in Persons Act, before the National Prosecution Service on Jan. 30, with a preliminary investigation set on Feb. 9.

Remulla said authorities have already identified retail outlets that allegedly received the undocumented cigarettes, with follow-up operations planned.

“This is an international system. Ang intelligence namin dito ay galing pang Singapore and Indonesia na ginagawa dito. So, it is larger than we think. Nung kumagat kasi excise tax, ang natural consequence niyan ay iiwasan nila ayan,” he said.

He added that cases for violations of Republic Act No. 12022, or the Anti-Agricultural Smuggling Act, and environmental laws are also being considered.

Remulla said the Pampanga raid brings the total value of confiscated undocumented cigarettes nationwide in recent weeks to about P10 billion.

PNP: Smugglers now a target

For his part, Nartatez said the PNP has intensified its campaign against smuggling syndicates following a series of high-impact operations.

“These series of successful anti-smuggling operations are proof of your PNP’s commitment not only to maintain peace and order but also protect our economy and the national interest,” Nartatez said.

“Let these operations serve as a stern warning to all smugglers that the PNP will not allow you to circumvent and disregard our laws to enrich yourselves at the expense of the Filipino people,” he added.

He said the Pampanga raid is part of a broader effort to trace the entire supply chain of contraband, from ports of entry to clandestine manufacturing hubs.

“This shows that the PNP is serious about stopping the illegal trade of smuggled goods in our country. Ang mga smugglers na ito ay walang lugar sa ating bansa. We will continue to protect our communities from illegal goods and ensure that laws are strictly enforced,” Nartatez said.

“The PNP is relentless in its fight against illegal trade. From our anti-smuggling raids in Batangas and Malabon to campaigns against counterfeit products, ang aming layunin ay protektahan ang mamamayan at ipatupad ang batas,” he added.

Nartatez also cited the recent seizure of P221.5 million worth of allegedly misdeclared Apple products by the PNP-Highway Patrol Group in Quezon City on Jan. 28.

BoC Commissioner Nepomuceno said the operation highlights the agency’s commitment to economic protection.

“Illicit cigarette manufacturing undermines legitimate businesses, deprives the government of much-needed revenues, and poses serious risks to public health. In line with the President’s directive, the Bureau of Customs will relentlessly pursue those involved in smuggling and illegal manufacturing through sustained enforcement and close coordination with our partner agencies,” Nepomuceno said.