BOC probes staff over luxury car smuggling; eyes full digitalization

By Wilnard Bacelonia, Philippine News Agency

AUCTION. Bureau of Customs Commissioner Ariel Nepomuceno presents to the media 13 luxury vehicles linked to the Discaya family at the Port of Manila on Oct. 1, 2025. The cars, which include Rolls-Royce, Bentley, Cadillac and Mercedes-Benz, were found during a search at St. Gerrard Construction in Pasig City. (PNA photo by Yancy Lim)

MANILA – The Bureau of Customs (BOC) has begun investigating several of its personnel allegedly involved in “syndicate-style” operations that manipulated shipment inspections, Commissioner Ariel Nepomuceno told senators on Wednesday.

During the organizational meeting of the Senate Committee on Ways and Means, Sen. Sherwin Gatchalian asked Nepomuceno about reports that some BOC employees had swapped vehicle inspection results to facilitate the release of imported cars.

“Parang itong operation is really sindikato… mga BOC employees din ang gumagawa (This operation seems to be run by a syndicate involving BOC employees),” Gatchalian said, asking whether those responsible have been identified and sanctioned.

Nepomuceno confirmed that show cause orders were issued to more than 10 personnel, who are now undergoing internal investigation.

“We already issued show cause orders to those involved, and we already submitted this to the ICI to break this practice,” he said, referring to the Independent Commission for Infrastructure which is currently looking into the flood control scam.

He added that some personnel had been relieved from their posts, while others remain under review as part of due process.

Nepomuceno stressed that the bureau has identified those possibly involved not only in the Discaya luxury car shipments, but also in similar cases.

“Kailangan po talaga ng full digitalization. Otherwise, these problems will always be recurrent for the next 50 years (We really need full digitalization. Otherwise, these problems will keep recurring for the next 50 years),” Nepomuceno said, noting that the bureau’s Electronic-to-Mobile (E2M) system still lacks the capability to trace which employee performs each transaction.

Committee chairperson Sen. Pia Cayetano expressed support for the bureau’s modernization drive, saying digitalization is necessary to enhance transparency and accountability.

Nepomuceno confirmed that the Senate Committee of Finance has committed funding for the digitalization initiative which he said has also the full support of President Ferdinand R. Marcos Jr.

The probe follows an earlier BOC report showing that most of the luxury cars seized from contractor couple Pacifico “Curlee” and Cezarah Rowena “Sarah” Discaya couple had no records of paid duties and taxes, with the bureau now investigating how some of the vehicles were released and registered with the Land Transportation Office despite incomplete import documents.

Nepomuceno assured senators that reforms are underway to ensure accountability and prevent recurrence.