Senator Tulfo Calls for Probe into BIR’s Alleged LOA Corruption Scheme

Manila: Senator Erwin Tulfo has urged the Senate Blue Ribbon Committee to launch a full investigation into alleged corruption in the Bureau of Internal Revenue (BIR), particularly the reported misuse of the agency's Letter of Authority (LOA) system that has allegedly become a long-running 'money-making scheme.'

According to Philippines News Agency, in an interview over DZBB on Thursday, Tulfo said he would recommend to Blue Ribbon chairperson, Senate President Pro Tempore Panfilo Lacson, that the committee take up the BIR issue next, citing the volume of complaints from taxpayers who fear retaliation from examiners. Tulfo noted that many business owners want to file complaints but refuse to disclose their identities due to fear of being blacklisted by corrupt personnel.

Tulfo, who also serves as the vice chairperson of the Blue Ribbon panel, mentioned that he had spoken with newly appointed BIR Commissioner Charlito Mendoza, who assumed office on November 12, requesting a report within a month. He also urged the agency to temporarily suspend the issuance of LOAs while investigations proceed. Tulfo expressed concerns that some examiners are using LOAs to pressure companies into paying reduced and unofficial tax amounts, with these 'discounted' payments being pocketed by unscrupulous personnel.

He emphasized that the LOA, which allows BIR examiners to inspect business records, is allegedly being misused. 'Before, only large companies were targeted. Now, even small businesses, family-owned grocery stores, and even 7/11 owners are being issued LOAs,' he said.

Meanwhile, regarding the Blue Ribbon Committee's flood-control probe, Tulfo mentioned that senators are preparing to turn over evidence to the Independent Commission for Infrastructure (ICI) as the inquiry nears completion. He noted the risk of duplicating efforts if the ICI, Department of Justice, Ombudsman, and the Blue Ribbon Committee all proceed simultaneously. Tulfo also highlighted the committee's ongoing efforts to locate missing witness Orly Guteza and confirmed hearing that former Department of Public Works and Highways undersecretary Roberto Bernardo is 'willing to return' alleged kickbacks as part of a possible bid to enter the Witness Protection Program.