Finance Secretary Frederick Go is warning OFWs to deal only with legitimate cargo forwarding companies, as the government moves to prosecute the businesses behind one of the largest balikbayan box abandonment cases in recent memory.
Go and Bureau of Customs Commissioner Ariel Nepomuceno were in Cebu on March 24 to personally oversee the distribution of packages to 30 OFW families — the final leg of a government-led effort to recover and redeliver approximately 54,000 boxes that had been left stranded at ports nationwide.
“Don’t be scammed by these forwarding companies that charge so cheaply. If it is too cheap, it is already a warning sign that it is a scam,” Go said.
Eleven forwarding firms face large-scale estafa through cybercrime charges, which Nepomuceno said would be filed by March 27, or no later than March 31 — even if it coincides with Holy Week. The total amount collected by these companies from OFWs for services that were never completed reached P330 million, covering 54,000 shipments. The cybercrime component stems from the firms’ use of social media to attract customers.
“We need to charge these firms that duped our OFWs to stop this kind of practice and to instill fear in others who might be planning to do the same,” Nepomuceno said in Filipino.
Among those who received their boxes at the Cebu event was Reynaldo Tibule, 65, of Mandaue City. He had sent the package from Saudi Arabia in June last year, shortly after being let go from a job he held there for 32 years. The box carried personal items and pasalubong for his family.
The 54,000 abandoned boxes were left at multiple ports after consolidators abroad and deconsolidators in the Philippines failed to settle shipping charges, arrastre fees, and customs duties. Nepomuceno said waived customs duties and taxes alone amounted to at least P20 million, while Go said the government spent another P20 million — drawn from the Office of the President’s budget — to arrange home deliveries.
As of March 23, all boxes from the ports of Manila and Davao, totaling 25,818, had been distributed. BOC records showed 13,842 boxes released in Cebu, 8,475 at the Manila International Container Port, 2,699 in Subic, 732 in Davao, and 70 at the Port of Manila. Remaining releases are expected from MICP, with 15,084 boxes pending, and 498 more at the Port of Cebu.
The 11 firms have already had their BOC licenses suspended and can no longer transact with the bureau. Filing of formal charges will trigger blacklisting. Nepomuceno said the agency has also been coordinating with Philippine embassies in Kuwait, Qatar, and Saudi Arabia to pursue foreign-based consolidators involved in the scheme.
Go said the government is also studying a proposed P2-million bond requirement for forwarding companies seeking BOC accreditation. Beyond serving as a financial qualification threshold, the bond would function as a reserve fund the government could draw from if a forwarder defaults on required fees and forwarding costs.
“We will hold them accountable to the law,” Nepomuceno said.
