A resolution directing a proper committee of the House of Representatives to conduct a probe in aid of legislation in connection with the recent discovery of illegal cigarette factories in two barangays in San Fernando, Pampanga, was filed by Pampanga 3rd District Representative Mica Gonzales on Monday, 16 February 2026.

The filing of the resolution was prompted by the recent discovery by the Department of Interior and Local Government (DILG) and the police of illegal cigarette factories in Barangays Panipuan and San Jose Malino in the Municipality of Mexico, and Barangay Panipuan in the City of San Fernando, Pampanga.

House Resolution No. 788 seeks to investigate and identify the people behind these operations, specifically the financers, masterminds, and protectors of this organized crime.

HR No. 788 likewise seeks to address the illegal acts resulting in economic sabotage, tax evasion, and the reported incidents of human trafficking. Finally, the House will review the pertinent provisions of the Anti-Agricultural Economic Sabotage Act and the Customs Modernization and Tariff Act.

The filing of the resolution follows the dismantling of illegal cigarette manufacturers and the confiscation of approximately ₱400 million worth of counterfeit products, with an estimated production cost of ₱150 million per day.

This illegal activity results in a loss of about ₱30 billion in excise tax revenue.

DILG Secretary Jonvic Remulla confirmed the arrest of six Chinese nationals and 60 Filipino workers, who were reported to be living in inhumane conditions.