House panel subpoenas vape firm execs over seized P1.4B smuggled e-cigarettes

The House Committee on Ways and Means on Tuesday subpoenaed two executives of e-cigarette companies  in connection with an ongoing congressional inquiry on the P1.4 billion worth of smuggled FLAVA e-cigarettes that were seized by authorities in Valenzuela City last month.

This developed after the House panel, chaired by Albay lawmaker Joey Salceda, carried the motion made by Cagayan de Oro representative Rufus Rodriguez who authored the Resolution that paved the way for the House inquiry.

Rodriguez claimed that there is a clear collaboration between FLAVA and Denkat Trading Corp. based on online advertisements online and online shopping mobile applications which according to the solon makes the issuance of subpoena to Flava Corporation Philippines Chief Executive Officer Gen Fabro and Denkat Trading Corp. owner Dennis Rostata, necessary.

“Denkat is importing FLAVA. Pictures are everywhere. They clearly have a connection. These people (from Denkat and FLAVA) should be here,” Rodriguez said.

Lorman Arugay, counsel of Denkat Trading Corp. maintained that his client has nothing to do with the smuggled e-cigarettes.

“My client [Denkat] is not the consignee or importer of the said products. On this transaction confiscated by the Bureau of Customs, there is no connection,” Arugay said.

Arugay conceded that there is an “informal” partnership between Denkat and FLAVA but clarified that such ties are not reflected on any company documents of Denkat Philippines.

“Based on what has been presented to the media and available information, there appears to be some form of partnership. But based on corporate documents, I have not seen any document that would, in any way, formalize this alleged partnership,” Arugay pointed out.

Arugay, however, assured the Committee that Denkat will submit pertinent company documents which would show its importation records, and other relevant documentation regarding the matter in compliance with the subpoena duces tecum that was also issued by the committee.

“My client is very much willing to reveal any document on this,” Arugay added.—RF, GMA Integrated News