Mighty Corporation Tips to Success

The Philippine tobacco industry is not a place for companies who lack strategy and a competitive drive. Many have tried, many have failed. Mostly due to family or financial problems.

Today, the Philippine tobacco industry amass up to P150 Billion per year. It serves as the top source of national government taxes for Philhealth, education and other social services.  However, only a few companies are part of the industry’s success and only a few enjoys its perks and privileges.

One of these firm companies is Mighty Corp, the country’s oldest Filipino-owned cigarette manufacturer. The company has been rising in the local market, increasing its market share from 3 percent in 2012 to nearly 20 percent in 2013.

So what made Mighty Corp. the cigarette-manufacturer monster it is today? The company finally shares the secrets behind their overflowing success.

  1. Anticipate future trends and adjust. Wongchuking said that when he was an assistant sales manager of their company from 1983 to 1985, he noticed the changing fashion in local smoking, as well as how the new tax system was killing the local cigarette segment. So the company decided to adjust to these factors. They developed Virginia-tobacco type cigarettes in 1985,and changed the company and brand name to “Mighty.”
  1. Preservation is basically harmony. Wongchuking stated that a little harmony between the families in a family business wouldn’t hurt. “If you have family harmony and you can work well together with family members and other people.”
  1. Succession should be based on meritocracySelecting the successor should be based on who is the most qualified. Same with the selection of executives and managers.
  1. Perseverance. Wongchuking stated that perseverance and a high-degree of patience is needed to attain success. “There should be a high degree of patience and perseverance. It is like courting a girl, a lot of patience is required.”
  1. Faith. As a devotee of Our Lady of Piat, the Virgin Mary shrine in Cagayan province, Wongchuking said that faith is needed in order to run a company with a proper mindset. “Faith is important to business or the profession, because faith gives you spiritual development and direction. Meaning, faith keeps you cool all the time, whatever happens to our business, profession or life.”

     

  2. People. Wongchuking praises the people behind Mighty Corp.’s success, which he describes as “very prudent and very dedicated.” He touched on the importance of taking care of your people in order to strengthen teamwork.

  3. Filial piety. The Wongchuking family believes in total obedience to parents and family elders. Alex Wongchuking said that one factor behind the company’s success is their firm belief in their 87-year-old mother, Nelia Dy Wongchuking.
  4. Hard work. Alex said that there is no substitute for hard work. According to him, he and his siblings go beyond the normal eight-hour shift per day. Even spending their weekends on work.

     

  5. Innovation. The company always seek to innovate. They modernized their manufacturing equipment for improved quality and increased yield production. Their father also bought a bigger factory in Malolos, Bulacan.

     

  6. Philanthropy. The company has always given something to the people as a way of remembering their hardworking, simple-living father, Wong Chu King. Their patriarch had no chance to finish high school or college. As a way of honoring him, the company’s foundation supports educational scholarships for three sets of beneficiaries: the kids of company employees, the kids of non-employees who are deserving students and need help, and also for children of rural tobacco farmers who want to study agriculture in college.
  1. Humility. Alex believes that humility is one factor to achieve success. “There should be an element of self-denial,” he said.
  2. Focus. He also believes on the importance of “concentrating on your core business.”

  3. Have only one family. Alex believes that being loyal and faithful to your spouse is also a factor to achieving success. “Having only one family is crucial for genuine success, because if one has too many families, that is a sure recipe for chaos and for nonstop family quarrels, “he said.

     

  4. Destiny. Alex explains his take on “destiny.” He responded, “Destiny is key to success, just like in the Bible. When God called Jeremiah to become a prophet, he said ‘No, I’m a shy person.’ But God said to him, ‘Before you were born, you were already destined to become a prophet.’ It became true, Jeremiah became a good prophet, naging madaldal (he became eloquent). Read the Bible, Jeremiah Chapter 1:4.”

Mighty Corp. Increases Tobacco Purchase from Farmers Up North

Local cigarette manufacturer Mighty Corp. vows to increase their tobacco purchase and help increase the production of local farmers from up north.

According to the president of Mighty Corp., the company’s domestic market share has significantly increased throughout the years.

Now, the company wants to return the favor, aiming to help increase the production and income of local farmers.

“We have earned our fair share of the market by making affordable cigarettes sold to the mass market. We’re proud of our modest success coming from a home-grown and Filipino-owned cigarette company,” the president said

“With a bigger share of Mighty Corp. in the market today, we are giving the tobacco farmers a fair share of our success by offering competitive prices to their crops.”, he added.

“Last year, we have bought even the low-priced tobacco leaves. Had Mighty Corp. not done that, it would have created a problem for tobacco farmers,” he claimed.

“We are happy to offer better prices to tobacco farmers and are willing to tie-up with the Department of Agriculture and the National Tobacco Administration to cement our partnership with the farmers.”

He claims that aside from helping millions of farmers all over the country, the company also helps the country grow through its taxes.

“Our contribution is in the form of taxes, which helps in the development of the country. We also employed more factory workers. Now, we have more than 2,000,” he said.

“As far as CSR is concerned, we will have irrigation pumps in their area and provide mini tractors. This will come in the form of grant. We will have scholarship grants,” he said.

Duterte willing to let Mighty Corp. off the hook for P3B

President Rodrigo Duterte is ready to settle the tax case of Mighty Corporation if the cigarette manufacturer would pay double the excise tax the company failed to remit.

Duterte told reporteres in Davao del Sur on Thursday that Mighty Corporation should pay P3 billion for the rehabilitation of hospitals in the country.

“Ako, kalimtan ko na pero ang iyang gi-imprinta, 1.5 billion of the fake stamps. Ako, musugot ko ani. Doblehun niya, kalimtan ko na. Anyway, akong saad sa iya na if someone in power pursue, I can always pardon him,” he said, referring to Mighty Corporation president Alex Wongchuking.

[I will forget about the printing of 1.5 billion worth of fake stamps. I will agree to this: Pay double, I’ll forget about it. Anyway, I assure him that if someone in power pursues the case, I can always pardon him.]

“Pero mao ni ang sabot. Ang iyang offer na 1.5, dili gyud na acceptable sa ako. Naay binuang eh. So, muhatog siya ug doblado. Himuon niya ug three billion. Ihatag niya ang one billion sa Basilan. Didto idiretso niya, ayaw sa ako, idiretso niya sa Secretary of Health, kay ipaayo nako ang ospital didto. One billion sa Jolo kay ipaayo pud nako ang hospital didto. Unya sa Manila, Mary Johnstone sa Tondo, one billion. Three billion, areglo mi. Igna siya,” he added.

[Here’s the deal. He offered 1.5, which is definitely unacceptable to me. There was deceit. So, he needs to give double. He should offer three billion. He should give one billion for Basilan. He should give it directly to the Secretary of Health, not to me, because I want to fix the hospital there. One billion for Jolo because I also want to fix the hospital there. Then in Manila, one billion for Mary Johnston Hospital in Tondo. Three billion and we’re settled. Tell him.]

Duterte explained that the law said that tax cases can be settled.

“Ani akong proposal sa iyaha. Ingon sa iyang abogado, tax evasion. Ingon ko nga falsification. But if it was part of the tax evasion case, musugot nalang ko. Tax cases can be compromised. Pwede aregluhin, basta tax liability lang. Kanang buwis buwis, dayon wala ka kabayad, tinuyo man o dili, pwede na nimo maareglo. Ang balaod nga nitugot ana nga naay areglo, compromise. That’s the word of the law.

[This is my proposal to him. His lawyers said tax evasion. I said falsification. But if it was part of the tax evasion case, I will agree. Tax cases can be compromised. It can be settled if it’s only tax liability. When you failed to pay your taxes, intentionally or unintentionally, you can settle it. The law allows settlements, compromise. That’s the word of the law.]

In his speech before local officials in Davao City, Duterte said that the deal with Mighty Corporation would be on if Finance Secretary Carlos Dominguez, Customs Commissioner Nicanor Faeldon, and Internal Revenue Commissioner Caesar Dulay would agree with it.

But Duterte said that there are some businessmen who told him that P3 billion is not enough.

Duterte on Wednesday revealed that he ordered the arrest of Wongchuking for economic sabotage. But Wongchuking met with National Bureau of Investigation (NBI) Director Dante Gierran and Justice Secretary Vitaliano Aguirre II on the same day. —NB/KG, GMA News

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Mighty gets TRO, blames faulty scanners Headlines, News, The Philippine Star

By Mary Grace Padin (The Philippine Star) | Updated March 9, 2017 – 12:00am

MANILA, Philippines – The Manila Regional Trial Court (RTC) has granted the petition of Bulacan-based cigarette manufacturer Mighty Corp. for a temporary restraining order (TRO) on raids and inspection of its warehouses by the Bureau of Customs (BOC).

In a phone interview with The STAR, Customs Intelligence and Investigation Service (CIIS) Director Neil Anthony Estrella confirmed the issuance of the TRO by Judge Tita Bughao Alisuag of Manila RTC on March 6.

A copy of the TRO obtained by The STAR showed it was issued in response to Mighty Corp.’s questioning the validity of the raids conducted by the BOC and the Bureau of Internal Revenue (BIR) in their warehouses in Pampanga and General Santos City last week.

Mighty’s complaint filed on March 3 said BOC and BIR operatives discovered “there were no counterfeit, fake or smuggled goods” in the warehouses but still proceeded with the raid, the conduct of which was not in the scope of their mission order.

The TRO is effective from the filing of the case on March 3 to March 23, while a hearing on the preliminary injunction has been set for March 14.

“The BOC will continue to perform its regular enforcement mandate. Public interest and compliance of the law will always prevail,” Estrella said. It was not clear if he was referring to raiding of Mighty warehouses.

Estrella also clarified the body investigating the case against the owners of the seized cigarette products is the BIR.

The STAR tried but failed to contact the BIR for comment on how the TRO would affect its investigation.

But in a separate interview, BIR Commissioner Caesar Dulay expressed disappointment over the lack of cooperation from Mighty Corp., contrary to what it had pledged to the National Bureau of Investigation.

“Unfortunately, when we had our first validation in Pampanga (on Tuesday), we got a different manifestation of cooperation from Mighty. We were supposed to inspect six warehouses … unfortunately, they (the teams) were met by a battery of lawyers from Mighty,” Dulay said.

“Expecting the cooperation pledged by Mighty, the team instead was questioned, their authority was questioned, their use of the taggant reader was questioned, they were questioned at every corner by the lawyers,” he said.

“They were supposed to start at 8 o’clock, it was about 11 o’clock that they were able to start their validation,” he pointed out.

In the end, Dulay said the BIR was only able to finish the validation of half of the contents of one warehouse. He said 50 cases of cigarettes were all verified to be bearing fake tax stamps.

“The validation process as of today continues. We seek to finalize it in a few days time and prepare whatever report we have for discussion with the DOJ (Department of Justice) and the NBI. I’m talking only of the process made in Pampanga because as you have seen, there were raids also made by the BOC in Zamboanga, General Santos, Tacloban and in Cebu,” Dulay said.

Source: http://www.philstar.com/headlines/2017/03/09/1679363/mighty-gets-tro-blames-faulty-scanners

 

Aguirre: No arrest of Mighty Corp. owner unless charges filed

MANILA, Philippines — Justice Secretary Vitaliano Aguirre II defended on Wednesday his decision not to apprehend a businessman whom President Rodrigo Duterte ordered arrested for alleged tax evasion and economic sabotage.

Aguirre said that at the time of his meeting with Mighty Corp. owner Alex Wong Chu King on Tuesday afternoon, there was no case filed against him yet.

Aguirre’s decision came just hours after presidential legal counsel Salvador Panelo told reporters through a text message that Duterte had ordered the arrest of Chu King following the seizure of P2 billion worth of cigarettes by the Bureau of Customs and the Bureau of Internal Revenue.

“At the time of our meeting yesterday, there were no cases filed against Mr. Alex Wong Chu King yet, that is why I did not order his arrest,” the Justice secretary said.

 Aguirre said that even if the DOJ wanted laws to be faithfully obeyed they still had to observe due process in the case of the businessman.

“There is no reason to have Alex Wong Chu King arrested as of the moment. While the Department of Justice is [at] the forefront of ensuring that our laws are faithfully obeyed, there is a process that has to be observed under the law,” said Aguirre, who has dismissed without investigation police involvement in extralegal killings.

The president has in the past ordered people arrested — gaming tycoon Jack Lam, for example — even if only courts can issue arrest warrants. He has also issued “shoot to kill” orders — against Albuera, Leyte Mayor Rolando Espinosa, who surrendered to authorities but was killed by police officers serving a search warrant on his jail cell last November — against suspects.

Aguirre advised the Department of Finance, the BOC and the BIR to sit down with Mighty Corp. to determine the company’s exact liabilities. He said that if such liabilities existed, they should be collected by the government authorities.

“If the DOF or the BIR or the BOC will determine that a criminal case should be filed against Mighty Corp., its officers or against Alex Wo Chu King with us at the DOJ, then we will faithfully discharge our duty and determine if probable cause exists,” he also said.

Chu King’s company is accused of producing fake cigarettes and using fake tax stamps.

Chu King’s lawyer, Sigfrid Fortun, also denied that his client was the one involved in a supposed bribery attempt on the president.

“Mighty was never involved or identified as the giver of the bribe but another cigarette manufacturer unrelated to the company,” he said.

He said that Panelo might have been fed wrong information that led to him to label Mighty Corp. as the company involved in the alleged bribery incident.

Source: http://m.philstar.com/315469/show/3256675e9ac7aa9b15949083b0eb94fc/

Panelo: I didn’t say Duterte was bribed

MANILA – Chief presidential legal counsel Salvador Panelo on Wednesday denied that there was a bribery attempt on President Rodrigo Duterte.

Panelo yesterday said the owner of cigarette maker Mighty Corp. sent a gift to Duterte which turned to be a box of cash.

 

He stressed, the sending of the “gift” was not bribery.

“May I correct you people. I never said there was a bribery try. In fact, my statement was I don’t know anything about that. Ask [Presidential Spokesperson] Undersecretary Ernesto Abella. Nagkalituhan yata sa text,” Panelo told reporters.

“The president himself related a story that it happened when he was vice mayor or mayor, and it was not bribery attempt but it was a gift which he returned.”

During a regular press briefing on Tuesday, Abella revealed a failed attempt to “influence” the President “financially.”

“He (Duterte) was simply saying that, in time past, there was an attempt to influence him financially,” Abella said, recalling a “Cabinet conversation.”

Abella refused to give additional details on the “Cabinet conversation,” telling reporters: “He (Duterte) has not commented on it publicly. If he feels that he should, he will.”

Duterte later confirmed Panelo’s story, but he said the incident happened when he was still Davao City mayor.

“And when I was Mayor, hindi naman, wala namang sinabi, basta iniwan lang. May hiningi pabor, sabi ko I am not into it. Pero pag-tindig niya may naiwan doon na parang…Hindi naman, wala naman bribery, kasi wala naman sinabi. Parang gratis. Pinahabol ko kay Bong,” Duterte said.

“Akala ko… kung bote, tatanggapin ko. Hindi naman ako umiinom eh, eh ‘di binibigay ko lang sa… Pero noong tiningnan ‘nong aide ko, pera. Sabi ko ihabol mo kung saan ‘yung g***** ‘yan. So nahabol niya sa eroplano mismo.”

Duterte also said that last Christmas, he received a gun as a gift. He ordered that this be returned.

 

Duterte earlier ordered the arrest of the “owner” of Mighty Corp., which supposedly stemmed from allegations the company faked tax stamps.

Mighty president Alexander Wong Chu King met with National Bureau of Investigation officials on Tuesday following an order from the Bureau of Internal Revenue “to seek him out,” said NBI spokesman Ferdinand Lavin.

While no charges have been filed, the businessman agreed to cooperate in any NBI investigation, Lavin said.

Source: http://news.abs-cbn.com/news/03/08/17/panelo-i-didnt-say-duterte-was-bribed

 

Mighty assails demolition job by competitors

Mighty Corp. said it is willing to open all its warehouses and cooperate with the Bureau of Customs (BOC) in its raids as it maintained that it is not in the business of producing fake cigarettes.

Mighty Corp. executive vice president and spokesperson Oscar Barrientos said the company’s own local brands are well-accepted by its customers.

 

 

“The company, however, bewails the use by other government agencies of Mission Orders of BOC to pursue schemes of its competitors to seize its products using a false pretext that fake cigarettes are stored in its warehouses because of its being in the forefront of effort to alleviate the plight of local tobacco farmers through amendatory legislation,” Barrientos pointed out.

He explained that it was plainly from the result of raids conducted on Wednesday by Customs agents in warehouses of Mighty in Pampanga and General Santos that no fake products of its competitors were found.

“That should have aborted the activity. But other government regulators without appropriate Mission Orders or directives from its head offices had used the raid to assert offenses by Mighty not covered by the BOC orders,” he said.

Mighty urged the BOC to be vigilant in its drive to stop the proliferation of fake products to ensure collection of duties and taxes. It said the company does not produce fake products and had done nothing to violate any regulations or the Tariff and Customs Code.

“The company simply requests that these raids which have made front page news but which had not resulted in the confiscation of fake products of its competitors, not be misused by its competitors who only seek the destruction of a 70-year-old local cigarette manufacturing company,” Barrientos said.

He said the company will take steps to ask for the immediate re-opening of its warehouses and pursue punitive action against those who had misused the BOC Mission Orders for insidious purposes.

“A local company should not cower or be at the tender mercies of its competitors who are against its advocacy of alleviating the plight of local tobacco farmers,” he added.

 

Source: http://www.manilatimes.net/mighty-assails-demolition-job-competitors/315087/

Gov’t should not shame one firm to favor another

 / 12:15 AM March 07, 2017

Inquirer columnist Ramon Farolan, quoting from a book written by Singapore Ambassador Kishore Mahbubani, enumerated on Monday what made the late Singapore elder statesman Lee Kuan Yew great.

“Among Lee’s traits was being guided by deeply held values.

“In the early days of Singapore, corruption was a scourge. [Lee] and his colleagues were able to overcome this problem because they led by example. They did not take a penny while in office.

“[An] example of the steel in [Lee’s] spine was an event in 1996, when American teenager Michael Fay was convicted of vandalism and sentenced to five lashes of the cane. Most countries thought Singapore would falter under American pressure. Lee stood firm and proceeded with the caning.”

President Digong may not be an intellectual giant like Lee Kuan Yew, but he is street-smart and has the same traits mentioned earlier.

Mano Digong has made an example of Peter Laviña, his spokesperson during the election campaign, by dismissing him as chief of the National Irrigation Administration (NIA) over a “whiff of scandal.”

The President refuses to give in to pressure from international groups and the Catholic Church for his unorthodox method of dealing with the scourge of drugs and criminality.

If Mr. Duterte continues to stay the course in running the country, the Philippines will be on the road to First World status by the end of his term.

If the President didn’t spare Laviña, one of the officials closest to him, from the boot, then he won’t hesitate to fire others who don’t adhere to his “change is coming” policy.

All he has to do is look closely at what’s happening in the Bureau of Internal Revenue (BIR), Bureau of Customs, Bureau of Immigration, Land Transportation Office, Land Transportation Franchising and Regulatory Board, and Department of Public Works and Highways.

Unlike at the NIA, the scandals in those agencies are nauseating.

* * *

It should not be the policy of the government to persecute and shame one company to favor another.

Mighty Corp., a homegrown firm, has lately been the subject of so much bad publicity.

If the cigarette company has placed fake BIR stamps on its products and evaded paying taxes, it should be penalized with fines over and above the taxes it owes the government.

But for the government to close down the company for alleged tax evasion just to please its rivals is like a father playing favorites among his children.

(By the way, why is the customs bureau involved in going after Mighty Corp. when the company has not violated customs laws?)

Clint Aranas, BIR’s deputy commissioner for legal affairs, is a level-headed official.

“The BIR is primarily responsible for running after tax evaders and will exert its best to collect taxes due the government. Mighty Corp. is just one of those companies under investigation for possible tax liabilities,” Aranas said.

“The power of taxation carries with it the power to destroy, that is why we should exercise it with caution and integrity,” he added.

Read more: http://newsinfo.inquirer.net/878103/govt-should-not-shame-one-firm-to-favor-another#ixzz4ceCCrvSz 
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Duterte willing to let Mighty Corp. off the hook for P3B

President Rodrigo Duterte is ready to settle the tax case of Mighty Corporation if the cigarette manufacturer would pay double the excise tax the company failed to remit.

Duterte told reporteres in Davao del Sur on Thursday that Mighty Corporation should pay P3 billion for the rehabilitation of hospitals in the country.

“Ako, kalimtan ko na pero ang iyang gi-imprinta, 1.5 billion of the fake stamps. Ako, musugot ko ani. Doblehun niya, kalimtan ko na. Anyway, akong saad sa iya na if someone in power pursue, I can always pardon him,” he said, referring to Mighty Corporation president Alex Wongchuking.

[I will forget about the printing of 1.5 billion worth of fake stamps. I will agree to this: Pay double, I’ll forget about it. Anyway, I assure him that if someone in power pursues the case, I can always pardon him.]

“Pero mao ni ang sabot. Ang iyang offer na 1.5, dili gyud na acceptable sa ako. Naay binuang eh. So, muhatog siya ug doblado. Himuon niya ug three billion. Ihatag niya ang one billion sa Basilan. Didto idiretso niya, ayaw sa ako, idiretso niya sa Secretary of Health, kay ipaayo nako ang ospital didto. One billion sa Jolo kay ipaayo pud nako ang hospital didto. Unya sa Manila, Mary Johnstone sa Tondo, one billion. Three billion, areglo mi. Igna siya,” he added.

[Here’s the deal. He offered 1.5, which is definitely unacceptable to me. There was deceit. So, he needs to give double. He should offer three billion. He should give one billion for Basilan. He should give it directly to the Secretary of Health, not to me, because I want to fix the hospital there. One billion for Jolo because I also want to fix the hospital there. Then in Manila, one billion for Mary Johnston Hospital in Tondo. Three billion and we’re settled. Tell him.]

Duterte explained that the law said that tax cases can be settled.

“Ani akong proposal sa iyaha. Ingon sa iyang abogado, tax evasion. Ingon ko nga falsification. But if it was part of the tax evasion case, musugot nalang ko. Tax cases can be compromised. Pwede aregluhin, basta tax liability lang. Kanang buwis buwis, dayon wala ka kabayad, tinuyo man o dili, pwede na nimo maareglo. Ang balaod nga nitugot ana nga naay areglo, compromise. That’s the word of the law.

[This is my proposal to him. His lawyers said tax evasion. I said falsification. But if it was part of the tax evasion case, I will agree. Tax cases can be compromised. It can be settled if it’s only tax liability. When you failed to pay your taxes, intentionally or unintentionally, you can settle it. The law allows settlements, compromise. That’s the word of the law.]

In his speech before local officials in Davao City, Duterte said that the deal with Mighty Corporation would be on if Finance Secretary Carlos Dominguez, Customs Commissioner Nicanor Faeldon, and Internal Revenue Commissioner Caesar Dulay would agree with it.

But Duterte said that there are some businessmen who told him that P3 billion is not enough.

Duterte on Wednesday revealed that he ordered the arrest of Wongchuking for economic sabotage. But Wongchuking met with National Bureau of Investigation (NBI) Director Dante Gierran and Justice Secretary Vitaliano Aguirre II on the same day. —NB/KG, GMA News

– See more at: http://www.gmanetwork.com/news/story/602568/money/economy/duterte-willing-to-let-mighty-corp-off-the-hook-for-p3b#sthash.ZuJ8lfdk.dpuf

 

 

 

 

Gov’t printer says fake tax stamps rap baseless Read more: http://newsinfo.inquirer.net/879328/govt-printers-says-fake-tax-stamps-rap-baseless#ixzz4cdJeudRS Follow us: @inquirerdotnet on Twitter | inquirerdotnet on Facebook

The state-run printer that churns out the tax stamps being affixed to cigarette packs said on Thursday that it had nothing to do with the proliferation of fakes that was depriving the government of billions of pesos in foregone revenue. 

APO Production Unit Inc. chair Mike Dalumpines said allegations that security was lax in the high-security printing plant was “baseless.” APO is an attached agency of the Presidential Communications Operations Office (PCOO).

Dalumpines was referring to a Bureau of Internal Revenue (BIR) report in December, which, he said, was “also incorrect.”

Task force investigation

The BIR progress report on the investigation of a task force looking into APO’s alleged overprinting of the internal revenue stamps being affixed to cigarette packs pointed to lapses in ensuring no fraudulent activity in the tax stamp production.

The report, dated last Dec. 19, noted that while stamp production was done 24 hours a day, seven days a week, the task force found that a full-time revenue officer on the premises was present only  during office hours.

Also, it said a “significant number” of stamps were eventually declared “defected” [defective] by APO, but internal control measures were lacking to determine where these defective stamps went, the report said.

From 2014 to 2016, a total of over 13.5 million stamps were declared “defected,” although further investigation showed that the actual number could climb to 37.4 million, according to the report.

‘Bad orders’

There were also so-called “bad orders” that cigarette manufacturers returned but still kept within APO premises.

In its investigation of the proliferation of fake stamps, the task force found that “several QR codes found in the fake stamps were observed to be regenerated or, in layman’s term, reused multiple times.”

A QR code is a two-dimensional barcode containing a unique identifier code printed on the tax stamp pertinent to the single cigarette pack bearing the stamp. Hence, a tax stamp ideally bears a unique QR code.

Regenerated codes

According to the report, “the QR codes that were regenerated multiple times were traced or belongs to only one company, Mighty Corp.”

The task force also found that Asa Color Trading Corp., which supplies the silver ink being used by APO in the tax stamps’ silver strip, also supplied Mighty’s ink.

Also, United Graphic Expression Corp., which is the contract supplier of base printing of tax stamps to APO, is also Mighty’s supplier.

In February, Presidential Communications Secretary Martin Andanar said he had instructed APO “to help the BIR in its investigation” of Mighty as well as other cigarette firms that allegedly use fake tax stamps.

Read more: http://newsinfo.inquirer.net/879328/govt-printers-says-fake-tax-stamps-rap-baseless#ixzz4cdJiMFp5 
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