2 solons linked to gang making P400-M illegal cigarettes daily
Authorities are investigating the supposed involvement of two Luzon-based congressmen in a syndicate that, according to Interior Secretary Juanito Victor Remulla, controls the “entire ecosystem” of the illegal tobacco trade in the country—from manufacturing and transportation to distribution and retail.
Quoting intelligence reports, Remulla said in a press briefing on Thursday, the two lawmakers are believed to be financiers of the large-scale operations that were uncovered during a police raid on a cigarette factory in Mexico, Pampanga, on Jan. 28. But he declined to identify them, citing the ongoing investigation.
Remulla described the syndicate as a sophisticated, organized network operating nationwide.
The Jan. 28 raid conducted by the Philippine National Police’s Criminal Investigation and Detection Group (CIDG) led to the arrest of six Chinese nationals and the rescue of 65 Filipino workers, whom authorities classified as victims of human trafficking and involuntary servitude.
The police also seized an estimated P400 million worth of illegally manufactured cigarettes in a single day, as well as three cigarette-making machines and two cigarette-packing machines.
These were in addition to tons of tobacco leaves, counterfeit Bureau of Internal Revenue tax stamps and other paraphernalia used to manufacture illegal cigarette brands.
Remulla said each machine could produce up to P150 million worth of cigarettes daily, putting total production at an estimated P4.5 billion monthly.
He added that the cigarettes were illegal and undocumented but not technically smuggled, as these were manufactured locally using fake tax stamps meant to evade excise taxes.
Economic sabotage
According to Remulla, the syndicate’s operations constitute a major attack on the country’s economy and public health system. Illegal manufacturing and sales bypass excise taxes, diverting billions of pesos from government coffers.
He estimated that the government lost around P30 billion in excise tax revenue in 2024 alone—funds meant for health care and social services.
“This is economic sabotage,” Remulla said.
The interior secretary added that the factory in Mexico, Pampanga, was operating under the name Samyoung Global Corp., with three Filipino and two Korean incorporators.
The incorporators, along with the owners of the leased property, could face criminal liability under the Anti-Agricultural Sabotage Act and antitrafficking laws. Offenses under the sabotage law are nonbailable.
Authorities, meanwhile, said the six Chinese suspects entered the Philippines as tourists.
One arrived in March 2025 and was identified as the mechanic responsible for installing and maintaining the machines, while five others arrived in December. Intelligence operatives believe the factory began operations on Jan. 1 this year after weeks of covert surveillance that included monitoring the movement of goods and drone reconnaissance.
“The machines are very large and difficult to move,” Remulla said. “This is not something you can just relocate overnight without being noticed.”
CIDG director Maj. Gen. Robert Alexander Morico II said at the same briefing that the six Chinese underwent inquest proceedings for violation of Republic Act No. 9208 or the Anti-Trafficking in Persons Act before the National Prosecution Service on Jan. 30. They will undergo preliminary investigation on Feb. 9.
‘Inhumane’ working conditions
The 65 rescued Filipino workers told authorities they were promised monthly wages of P15,000 but were not paid their most recent salaries. Remulla said they were housed inside the compound in makeshift barracks made of light materials, describing the conditions as “inhumane.”
“There were no windows … There was only one light. There was no electric fan. They were only sleeping on makeshift beds,” he said.
The workers’ situation, he added, met the legal definition of involuntary servitude, with their cases already referred to the Department of Justice. They will also receive government assistance before being sent home.
Remulla said authorities are also investigating whether local government units failed to detect the illegal operation, including whether the factory was issued business permits or inspected by fire and safety officials.
“If permits were issued or inspections were conducted, then there is accountability there,” he said. “That is now part of the investigation.”
The Pampanga raid is part of a broader government crackdown on illegal tobacco manufacturing and smuggling.
Remulla said authorities began intensified operations in December, starting with a major seizure in Mabini, Batangas, followed by another operation in Malabon. Combined seizures, including machinery and penalties, now amount to an estimated P10 billion.
Authorities suspect there may be at least 10 other illegal cigarette manufacturing sites operating nationwide and said more operations are expected in the future. —WITH A REPORT FROM JASON SIGALES
