LAND Transportation Office (LTO) Central Visayas Regional Director Victor Emmanuel Caindec has sought the assistance of the National Bureau of Investigation (NBI) in its fight against five major motorcycle dealers owned by the Du Family.
This, after the agency discovered the irregularities in the submission of invoices to LTO-Central Visayas from the actual records held by the motorcycle owners.
Non-release of the original Certificate of Registration to owners, which bears no annotation or encumbrance in favor of the creditor, is illegal.
Motorcycle owners who fail to carry their motor vehicle’s Certificate of Registration and Official Receipt violate the Republic Act 4136 or the Land Transportation and Traffic Code.
Caindec has written a "Request for Assistance and Investigation" to NBI Officer-In-Charge Eric Distor to ask for assistance from the agency.
The letter was coursed through NBI-Central Visayas Regional Director Renan Augustus Oliva dated March 26, 2021.
"We have uncovered several fraudulent sales practices of several dealerships which tantamount to huge loss of income to the government which could significantly alleviate our economy from this pandemic," Caindec said in his cover letter.
He also said motorcycle dealers Du Ek Sam, Inc., DES Marketing, Inc., DES Strong Motors, Inc., Desmark Corporation and Premio Corporation deliberately patterned the misreporting of business practice driven by the motive to evade taxes.
"By the volume of motorcycles sold under the dealership network of the Du family, Government Revenues in the form of Taxes, Chattel fees, and LTO annotation fees are estimated to be in the HUNDREDS OF MILLIONS ANNUALLY or BILLIONS in a span of several years prior," said Caindec, stating the violations of the dealers.
The director also emphasized the need to address the said violations as they are of "transcendental importance to the government and public in general as it pertains to Economic Sabotage, Syndicated Estafa, Large-scale Fraud with Tax Evasion."
With the existing issue, Caindec was issued a subpoena by the Senate Blue Ribbon Committee to testify as a resource speaker in the proceedings.
The director also revealed that a "presumed" investigation by the Bureau of Internal Revenue is currently being undertaken following the request of the agency to furnish then copies of receipts and sales invoiced submitted by the dealers to LTO-Central Visayas from 2018-2020.
"This humble LTO Regional Office has readily exposed a grand scheme involving economic sabotage, tax evasion, and possible large-scale syndicated estafa," said the regional director.
While LTO-Central Visayas focusing on the administrative aspect of the investigation, Caindec wishes to ask for the expertise of the NBI for the efficient detection and investigation of the crimes committed by these dealers.
In 2019, LTO-Central Visayas discovered issues through social media reports and complaints from the public via the Presidential Complaint Center of delayed registrations and non-release of Certificate of Registrations of motorcycles sold by the said dealers.
Upon investigation of LTO-Central Visayas, the agency discovered the scheme of the illegal activities of the said dealers. (PR)