Customs chief faces ax

Commissioner Angelito Alvarez may be removed as chief of the Bureau of Customs (BOC) as a result of the controversy involving smuggled vehicles and motorcycles in the South, according to a source close to President Benigno Aquino III.

The source said Alvarez might be replaced by former Camarines Norte Representative Liwayway Vinzons-Chato or former Cagayan Rep. Manuel Mamba, both Liberal Party stalwarts.

“Perhaps he’ll no longer be there in July,” the source, a Palace official, said of Alvarez. The source asked that he not be named for lack of authority to speak with the media on developments in Mr. Aquino’s official family.

Sought yesterday for comment, Alvarez said he was prepared to go if the President wished to replace him. But he blamed “vested interests” hurt by his reforms at the BOC for going after him.

Another Malacañang official confirmed that the head of the government’s second-largest revenue-collecting agency could be removed, but not just yet.

“Lito Alvarez is in play, but it’s not a done deal,” said the official who spoke on condition of anonymity because of the sensitive nature of the subject.

A finance official familiar with the issue hinted that the team of Finance Secretary Cesar Purisima was busy making a case for Mr. Aquino to retain Alvarez.

“Those rumors have been around since July [of last year],” the finance official said. “What’s important for us is that the BOC’s cash collections have been growing by double digits.”

The official also pointed out that, while speculation about changes in the Cabinet was in vogue nowadays, the finance team was “focused on delivering results.”

Aquino dissatisfied

In a recent interview in Davao City, the President expressed dissatisfaction over the way the BOC had been performing despite its increased revenues.

He questioned how vehicles could have been smuggled undetected into the country when the BOC was supposedly guarding against such activities.

He said there would be changes to improve the bureau’s performance.

“We are constantly reviewing, with Secretary Purisima, the performance of the [BOC]. And if you look at the data, the collections have really increased,” the President said. “But I’m not satisfied.”

Mr. Aquino lamented that it took US authorities to alert the Philippine government on the smuggling going on.

“Here in Mindanao, we had the issue of smuggled vehicles and motorcycles, and the first statement from Customs was that they didn’t know how [the vehicles] got here,” Mr. Aquino said in reference to the controversy triggered by the recovery of a P3.4-million Martin Brothers chopper stolen from Hollywood screenwriter Skip Woods.

“Of course, they were the watchmen of these goods. How come they didn’t know what happened after the event? Why did it have to take foreigners to tell us that these crimes are happening here,” Mr. Aquino said, adding:

“We have been discussing steps that are supposed to improve the [BOC] service. Expect us … in about two months to make known the changes.”

On Friday night, the President said one Cabinet official might get a new assignment if issues confronting his agency were not resolved.

But Alvarez is of sub-Cabinet rank, the BOC being under Purisima’s jurisdiction.

At Aquino’s pleasure

Alvarez said that “in this line of work, you’re living by the day.”

“If it pleases the President that I should go, then I cannot do anything,” he said. “I serve at the pleasure of the President. If it’s time, then I’ll let go.”

Alvarez said Mr. Aquino had yet to speak with him, but added that he had also heard talk that Vinzons-Chato would be tapped to replace him.

Vinzons-Chato is a former commissioner of the Bureau of Internal Revenue. Mamba was the chair of the House committee on the North Luzon Growth Quadrangle and vice chair of the House committees on agrarian reform and on national defense.

Alvarez said his job “is one of the hardest posts in government.”

“Many of my predecessors stayed only an average of eight months. But as Secretary Purisima noted, I’ve been here for three quarters,” he said.

Alvarez said certain quarters had been waging a hate campaign against him for his reforms at the BOC.

“We’ve been filing cases every Thursday [at the Department of Justice], and that has hurt many, not just vested interests but also powerful politicians,” he said.

He said the BOC filed the cases although it meant going against vested interests in oil, food and other industries and their allied politicians.

Level playing field

Alvarez said he had made changes at the BOC from the earlier setup when “only eight brokers cornered the business.”

“If you level the playing field, one sector will be glad but there are others who won’t be happy,” he said.

Alvarez said that he had also initiated charges against customs officials involved in smuggling, and that they had likewise gone after him.

“Because of our efforts, the BOC went down in the corruption index from No. 2 to No. 7. Our collection went up by P9.5 billion although the tariffs on many goods have gone down,” he said. “But they went after me as if I’m a politician. In Davao, they even printed leaflets saying that I should be fired.”

Alvarez said the biggest case leveled at him was the issue of the “hot cars” that was recently exposed. But he insisted that the smuggling case happened before he became customs chief.

According to Alvarez, he was preparing to retire from the private sector when he was tapped to head the BOC.

He said that Guillermo Parayno, a past customs chief, was then set to be appointed. “But that did not push through, and so Secretary Purisima called me and said I should take the job,” he said.

“If they tell me ‘Time’s up,’ then I’ll let go. I can say that I did my share. I could go back to the private sector or maybe take a vacation,” he added.

The customs post was one of the last major positions to be filled by the President last year.

Purisima’s first choice for the post was Parayno, who was heavily favored by the business community and backed by the Liberal Party. But according to sources at that time, Parayno fell victim to the infighting within the “Samar” and “Balay” factions in the Palace. With a report from Daxim L. Lucas