Anti-crime group asks justice dept. to file plunder other raps vs trade chief, Hyundai

February 8, 2018

The Volunteers Against Crime and Corruption (VACC) on Thursday asked the Department of Justice to prosecute for plunder and other criminal charges Trade and Industry Secretary Ramon Lopez and officials of Hyundai Motor Company and its Philippine partners for allegedly duping the government more than P1 billion through grant of tax exemptions and preferential treatment.

In a 13-page complaint, the VACC through lawyer Ferdinand Topacio also accused Lopez, chairman of the Board of Investments (BOI), of committing the crime of economic sabotage through technical smuggling and estafa.

Named respondents were Mong-Koo Chung, chairman and Co-Chief Executive Officer (CEO) of the Hyundai Motor Company (HMC); Won-Hee Lee, president and Co-CEO of the HMC; Yong Suk Lee, president of HMC’s Asia and Pacific Regional Headquarter; Richard Lee, the chairman-emeritus of Hyundai Asia Resources, Inc. (HARI); Edward Go, chairman of HARI; Conrad Marty, vice-chairman of HARI; Maria Fe Perez-Agudo, president and CEO of HARI; Eleazar Reyes, member of the board of directors of HARI; Ladislao Avila, Jr., member of the board of directors of HARI; and Cristina Salvador, customs broker of HARI.

HMC is a South Korean multinational automotive manufacturer, based in Seoul. HARI is the local affiliate of HMC.

The complaint arose from an inspection by the Board of Investments (BOI) on HARI’s manufacturing plant in Sta. Rosa, Laguna which found out it did not comply with the Motor Vehicle Development Program (MVDP) under Executive Order No. 156, which aims to establish and/or expand production facilities of global vehicle manufacturers to allow the export of completely-built-up motor vehicles, and the increase exports of motor vehicles parts and components.

In line with MVDP, global motor vehicle manufacturers of four-wheel motor vehicles that qualify under the program was accorded, among others, preferential tariff rate of one percent in the importation of completely knocked-down (CKD) units, its parts and components.

The VACC said the BOI discovered there were no assembly jigs and welding machines observed in the assembly floor; there were pallets of newly-delivered and fully painted body shells of several car models with steering wheels, seats, front and back lights, and side mirrors already installed; there were no painting and welding processes for its assembly operations; only the installation of engine, tires and batteries and quality testing/inspection are being undertaken within the facility.

These findings  show an absence of basic assembly processes, the BOI noted.

The complainant said Lopez should be held liable for plunder for taking advantage of his position as chairman of the BOI to favor HARI.,

“It is worth noting that HARI has always enjoyed preferential and favorable treatment from respondent Lopez, the cancellation of HARI’s registration with the MVDP notwithstanding,” the complaint said. DMS