Guo indicted under Anti-Dummy Law

The Department of Justice (DoJ) has indicted former Bamban, Tarlac mayor Alice Guo and her co-respondents for alleged violation of the Anti-Dummy Law, reversing an earlier ruling that dismissed the complaint.

In a resolution, the DoJ said it found probable cause to charge Guo, also identified as Guo Hua Ping, and others with the simulation of minimum capital stock under Section 2 of Commonwealth Act 108.

The case stemmed from allegations that Filipino ownership requirements were circumvented by misrepresenting the capital structure, a practice prohibited under the Anti-Dummy Law, which regulates foreign participation in certain industries.

The DoJ’s latest finding effectively revives the complaint and clears the way for the filing of formal charges in court.

The latest ruling came after the DoJ granted a motion for reconsideration filed by the National Bureau of Investigation (NBI), which sought to reinstate the Anti-Dummy Law charge.

While the DoJ reversed its earlier dismissal of the complaint, it maintained that its previous finding that charges for falsification of public documents should be pursued.

The case originated from an investigation conducted by the NBI-Dagupan District Office into the incorporation and operations of 3LIN Q-Farm Inc., a company based in Pangasinan.

Misrepresentation also alleged

Authorities alleged that some of the firm’s foreign incorporators misrepresented themselves to circumvent the constitutional restrictions on foreign land ownership in the Philippines.

In its motion, the NBI said the respondents used falsified documents and simulated stockholdings to make the company appear compliant with Philippine laws, allowing it to enjoy the rights and privileges of a domestic corporation.

The bureau also cautioned about dismissing the Anti-Dummy Law complaint on the basis of the land acquisitions being made before the company’s incorporation could set a dangerous precedent, potentially creating a loophole that would enable violators to evade liability.

Acting on these arguments, the DoJ agreed to include the Anti-Dummy Law violation in the charges, resulting in the filing of new information against Guo and her co-respondents.