Sunday, November 13, 2016

Back to Back Cases

We had this incident in two of the logistics companies of the conglomerate I am working for. Last May of this year their former client, a shipper of fresh salmon from abroad, accused them of charging Value Added Tax for the shipments which turned out to be tax free. So our companies investigated the matter and discovered that their Customs processor along with 14 other people, upon learning from the Bureau of Customs itself that the shipments are non-vatable, conspired to keep this from management and appropriate the VAT payments amongst themselves. This went on for about 2 years and they were able to appropriate about P2,000,000.00. 

We undertook the corresponding administrative investigations and terminated the 15 employees. As expected they filed a labor case against the companies for illegal dismissal which was bold and clearly unfounded considering their evident participation in the theft of the aforesaid VAT payments. The company for its part filed the appropriate criminal cases for qualified theft. 

Let's see how these cases unfold...

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