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DILG says syndicate may be behind Pampanga illegal cigarette operations. ABS-CBN News composite

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DILG says syndicate may be behind Pampanga illegal cigarette operations

Karen De Guzman

ABS-CBN News

<div><span class="fr-img-caption fr-fic fr-dib" style="width:960px;display:block" width="960"><span class="fr-img-wrap"><img src="https://od2-image-api.abs-cbn.com/prod/editorImage/1771227510889composites 2 (1) (6).jpg" style="width:960px" class="fr-fic fr-dib" width="960"/><span class="fr-inner" style="text-align:left">DILG says syndicate may be behind Pampanga illegal cigarette operations. <em>ABS-CBN News composite</em></span></span></span></div><p>PAMPANGA — Authorities are looking into the possible involvement of a syndicate behind the illegal cigarette manufacturing operations in Pampanga, after three more factories were found abandoned following an earlier raid in the province. </p><p>Interior Secretary Jonvic Remulla on Monday inspected a warehouse in San Fernando City where authorities seized an estimated P400 million worth of unregistered cigarettes and manufacturing machines.</p><p>The development came after a facility in Barangay Panipuan, Mexico, Pampanga was shut down on January 29.</p><p>Shortly after the raid, three more factories in San Fernando, Mexico, and San Simon were reportedly abandoned.</p><div><a href="https://www.abs-cbn.com/news/business/2026/2/12/customs-bureau-nabs-p39-3-million-worth-of-illicit-cigarettes-tobacco-1639">Customs bureau nabs P39.3 million worth of illicit cigarettes, tobacco</a></div><p>“Tinitingnan namin kasi masyadong coincidence. Nung nahuli sila noong 29, San Simon nagsara at saka may isa pa sa Mexico nagsara, sabay-sabay iisa lang. So it’s too much of a coincidence na nagsara sila nang sabay-sabay,” Remulla said.</p><p>He added that authorities are now identifying the alleged “overall mastermind” behind the operations.</p><div> </div><div><strong>COMMON DENOMINATORS</strong></div><div> </div><p>According to Remulla, investigators found several common denominators among the four facilities: they produced the same cigarette brands, shut down simultaneously, were operated by Chinese nationals, and shared the same legal counsel.</p><p>“So may POIs (persons of interest) kami pero hindi pa namin nata-tie-up instinctively kung sila talaga ang kasama pero tingin namin may tobacco lord dito,” he said.</p><p>Remulla earlier disclosed that two congressmen from Central Luzon are being considered persons of interest in the large-scale illegal operation, although no formal charges have been filed.</p><div><a href="https://www.abs-cbn.com/news/regions/2026/2/5/6-chinese-63-filipinos-nabbed-in-pampanga-raid-on-alleged-illegal-cigarette-factory-0757">6 Chinese nabbed, 65 Filipinos rescued in Pampanga raid on alleged illegal cigarette factory</a></div><p>He also noted that some lawmakers from the region have sought meetings with him.</p><p>“Sabi ko wala pa naman ako pinapangalanan, bakit kailangan ako kausapin? So sumusubok silang kausapin ako pero wala pa naman akong facts na pwedeng ilabas kaya wala pa kaming pag-uusapan,” he said.</p><div> </div><div><strong>P30 BILLION IN LOSSES</strong></div><div> </div><p>Remulla reiterated that the government incurred around P30 billion in tax losses in 2025 due to illicit cigarette operations, affecting funds supposedly allocated for public health programs.</p><p>He said cases will be filed under the Anti-Agricultural Economic Sabotage Act, which classifies large-scale smuggling of agricultural products — including tobacco — as economic sabotage.</p><p>The offense is non-bailable and may include seizure of properties.</p><p>“Napakabigat ng batas na ‘yan, kasama ang seizure of properties, non-bailable pero ang hinahabol namin dito ay ‘yung buong ecosystem,” Remulla said.</p><div> </div><div><strong>NATIONWIDE OPERATIONS</strong></div><div> </div><p>Philippine National Police (PNP) chief Jose Melencio Nartatez Jr. said operations are being conducted nationwide, targeting the entire supply chain, from manufacturing and distribution to retail.</p><p>He said illegal cigarettes are often distributed to sari-sari stores rather than formal retail establishments.</p><p>Authorities are now monitoring transport vehicles such as wing vans allegedly used in delivering the products.</p><p>“You can just imagine kung itong mga items na ito lumabas, it is not only for the revenues. Ito rin ‘yung health conditions nor hazards na ibibigay nito that’s why ‘yung DOH ay kasama din dito,” Nartatez said.</p><p>He added that recent operations have also been conducted in Mindanao, Cebu, and Bataan, where warehouses containing millions worth of cigarettes were seized.</p><div> </div><div><strong>INTELLIGENCE FUNDS</strong></div><div> </div><p>Meanwhile, Bureau of Customs (BOC) Commissioner Ariel Nepomuceno addressed concerns regarding the agency’s intelligence funds, following questions from Manila Third District Representative Joel Chua on how these funds are utilized, especially amid the growing illicit tobacco trade.</p><p>Nepomuceno explained that the BOC inherited nearly P5 million per month in intelligence funds, which are used not only to combat cigarette smuggling but also to tackle other illegal activities, including petroleum and vehicle smuggling.</p><p>He noted that from January to December 2025, the BOC seized more than P400 billion worth of smuggled goods, with agricultural smuggling alone estimated at nearly P200 billion.</p><p>“Ikumpara kasi ni Congressman Joel ‘yung 2 nahuli ng HPG [Highway Patrol Group]. So in terms of value hindi ito paligsahan,” he said.</p><p>“Hindi biro makipagtalo at makipagpaligsahan sa mga smugglers, ‘yung mga sindikato. Natutuwa nga kami ngayon dahil kay Sec. Jonvic, hindi lang nag-iisa ang BOC ngayon sa pakikipaglaban sa smugglers,” he added.</p><p>Authorities said the investigation is ongoing as they seek to dismantle what they describe as an organized and well-funded illegal cigarette network operating in multiple regions.</p><div> </div><div><strong>&#x27;DISMANTLED&#x27;</strong></div><div> </div><p>Authorities believe they have dismantled the syndicate behind the illegal manufacturing of cigarettes in Pampanga after discovering three more abandoned warehouses believed to be part of a wider illicit tobacco network, Remulla said.</p><p>According to Remulla, the latest warehouse served as the initial processing hub where raw tobacco leaves were delivered, shredded, and dried before being transported to three factories in Mexico, Pampanga for manufacturing and packing.</p><p>“So, mula cutting, drying, manufacturing, packing at retail, nabuwag na natin ang sindikato dito sa Pampanga pa lang,” he said.</p><p>Inside the facility, authorities found raw tobacco leaves and several shredding and drying machines.</p><p>The warehouse was reportedly leased to a company, which authorities said was involved in the shredding and drying of tobacco but had no permit from the National Tobacco Administration (NTA).</p><p>Authorities are still determining the origin of the raw tobacco leaves.</p><p>Remulla said DNA analysis may help trace where the tobacco came from.</p><div> </div><div><strong>SAME PATTERN, SAME TIMELINE </strong></div><div><br/></div><p>Investigators said the operations followed a uniform pattern across multiple sites in Pampanga, including facilities in Mexico and San Simon.</p><p>Remulla noted that all the operations started simultaneously on Jan. 1, 2026 and stopped on Jan. 29, 2026.</p><p>“Paano namin nalaman na ang operations nila ay ganoon? Kasi ‘yung consumption ng electricity nila went from P0 to P31,000 in January para i-operate ‘yung mga shredder nila. At ganoon din ang mga nakita natin sa mga kabilang lugar,” he explained. </p><p>“‘Yung isa, generator ang nagpapatakbo, iba kuryente. Iisa ang pattern nila. They all started Jan. 1 and they all ended Jan. 29.”</p><p>He added that when one facility stopped operating, the others also ceased operations, indicating a coordinated network.</p><div> </div><div><strong>OPERATIONS EXPANDING OUTSIDE LUZON </strong></div><div><br/></div><p>While authorities believe the syndicate in Pampanga has been dismantled, Remulla said the campaign is far from over.</p><p>The interior department is now eyeing possible illegal tobacco operations in the Visayas and Mindanao.</p><p>Remulla also underscored that the crackdown on illegal tobacco is just the beginning of a broader campaign against organized crime.</p><p>Investigations and case build-up are ongoing in coordination with concerned agencies.</p><div><br/></div><div><strong>RELATED VIDEOS</strong></div><div><strong><span class="fr-video fr-deletable fr-fvc fr-dvb fr-draggable" contenteditable="false" draggable="true"><iframe width="640" height="360" src="https://www.youtube.com/embed/Cxda8_PojtI?&amp;wmode=opaque&amp;rel=0" frameBorder="0" allowfullscreen="" class="fr-draggable"></iframe></span><span class="fr-video fr-deletable fr-fvc fr-dvb fr-draggable" contenteditable="false" draggable="true"><iframe width="640" height="360" src="https://www.youtube.com/embed/dFrgcM3jwrw?&amp;wmode=opaque&amp;rel=0" frameBorder="0" allowfullscreen="" class="fr-draggable"></iframe></span></strong><br/></div>

<p>Authorities are looking into the possible involvement of a syndicate behind the illegal cigarette manufacturing operations in Pampanga, after three more factories were found abandoned following an earlier raid in the province.</p>

Authorities are looking into the possible involvement of a syndicate behind the illegal cigarette manufacturing operations in Pampanga, after three more factories were found abandoned following an earlier raid in the province.