Richard Tan aka Chen Ju Long and his companies in PHL

On Monday's Senate Blue Ribbon Committee hearing into the shipment of P6.4 billion worth of shabu, the ownership of Hong Fei came under scrutiny with committee chairman Richard Gordon asking if an officer of the company is a corporate “dummy.”

Ruben Taguba, former Customs police and father of whistleblower Mark Taguba, raised questions about the ownership of Hong Fei. 

Throughout the hearings, Chen Ju Long aka Richard Chen/Tan, has been pointed to as the owner of the firm. A key figure in the investigation, Tan triggered the drug bust with the call to Customs officials about the drug shipment in his warehouse.

Through his interpreter, Tan told the committee, “Your honor, by nature sa kanya yung company, however, according to the Philippine Law, may 60-40 sharing.”

“Dummy?” Gordon asked.

Tan admitted that the declared president of his company is a “house member.” He later clarified, with the help of his interpreter, that Rose Dela Cruz is his Filipino girlfriend and that he has a wife in China.

As listed in the SEC documents, Mary Rose Dela Cruz is president of Philippine Hong Fei and holds 30 percent ownership of the company with P1.2 million paid subscribed shares.

Gordon said Dela Cruz will be invited to the next hearing.

In his affidavit submitted to the Senate, he identified himself as “Chen Ju Long, a.k.a. Richard Chen (Tan in Filipino), Chinese citizen.”

Tan said he has been doing business in the Philippines for two decades, with business interests in cargo logistics and forwarding.

He said he is the General Manager of Hong Fei Logistics and gave as its address the warehouse address in Valenzuela raided by the BOC and Philippine Drug Enforcement Agency in May.

In the affidavit, Tan said, “I do not own the said warehouse, contrary to news reports.” He claimed that he is only leasing the property.

Ownership

The Philippine Constitution states, in part, “The Congress shall, upon recommendation of the economic and planning agency, when the national interest dictates, reserve to citizens of the Philippines or to corporations or associations at least sixty per centum of whose capital is owned by such citizens, or such higher percentage as Congress may prescribe, certain areas of investments.” This became the basis for the Foreign Investment Act which is the law that governs foreign investments in the country.

GMA News Research looked into the background of Tan and found at least four companies registered with the Securities and Exchange Commission (SEC) with direct connections to him.

Tan’s counsel, lawyer Abraham Gutoc, said only one, Philippine Hongfei Logistics, is operational.

Philippine Hongfei Logistics Group of Companies, Inc.

Philippine Hongfei Logistics Group of Companies, Inc. was incorporated on March 11, 2009 as a business engaged in logistics operations.

The SEC papers show “Chen Julong” as an incorporator of the company, as well as its chairman according to Philippine Hong Fei’s 2016 general information sheet (GIS). Tan/Chen also holds 20 percent ownership of the company.

Based on the 2016 SEC records of the company, Mary Rose Dela Cruz is the president of the company and holds 30 percent ownership. A certain Zhang Hong owns 10 percent.

Philippine Hongfei Logistics filed affidavits of non-operation before the SEC for the years 2009 and 2010.

In May 2015, a want ad appeared on website pinoyjobs.ph posted by hiring company “hongfei logistics” with the same Paranaque address as Philippine Hongfei Logistics Group of Companies, Inc.  

The want ad was for “accountant, office secretary, manager, house helper.” Also noted in the ad, “Friends in china are looking for some house helpers. 20,000pesos/month. employer while (sic)shoulder the china visa expenses.with 3-5yrs. contract.”

Manpower recruitment for China is not among the registered puposes of Hongfei.

Gutoc explained in a text message that his client said the maid was for his mother “kasi matanda na at may problema sa tuhod, minsan nagwi-wheelchair. ”

Hong Fei Logistics Phils Corp

Hong Fei Logistics Phils Corp. was incorporated in 2007 with “Chen Ju Long @ Richard Tan” as one of the incorporators.

“Chen Ju Long @ Richard Tan” is listed as director of Hong Fei Logistics Phils Corp. with 20 percent ownership in the 2009 General Information Sheet of the company.  

Based on its SEC declarations, it is engaged in the business of freight and cargo forwarding, as well as  hauling, carrying, handling, distributing, loading and unloading of general cargoes.

Hong Fei Logistics Phils Corp was dissolved in 2010.

MBL Group (Philippines) Inc. (formerly MBL Wine Group (Philippines) Inc)

MBL Wine Group (Philippines) Inc. was incorporated on June 25, 2013 with “Julong Chen” as one of the incorporators.  The company later changed its name to MBL Group (Philippines), Inc.

According to the company’s latest GIS in 2016, Julong Chen is the chairman of the company and holds 30 percent ownership.

MBL declares itself engaged in “import and export, distribution of wine, online selling of wines and also engaged in the business of travel and tours.”

A document filed at the SEC stated that as of May 2016, MBL Group has not started its operation. This was reflected in its 2015 financial statement as well.

Zhongjian Construction Inc.

“Julong Chen” is listed as one of the incorporators of Zhongjian Construction Inc. on April 4, 2016. The company’s 2016 SEC papers state Julong Chen as its chairman.

Its registration papers state that it is a general construction company. The ownership of the company is distributed evenly among its five stockholders, with Julong Chen owning 20 percent of the business.

Filipino co-owners

All four companies, where Tan/Chen is incorporator and stockholder, list Filipinos and other Chinese nationals as co-owners.

GMA News Research found at least four individuals common to Tan’s/ Chen’s companies: three are Filipinos, and one a Chinese national.

They are listed as incorporators, officers, or stockholders in Chen’s companies.

Dela Cruz and Zhang Hong, a Chinese, both appeared in all of Chen’s companies, except in Hong Fei Logistics Phils which was dissolved.

Aside from Dela Cruz, two more Filipinos appear in the SEC papers of Tan’s/ Chen’s other companies.

Joey Arcega and Lirome Aldrin Dela Cruz, are listed as officers and stockholders in MBL Group and Zhongjian Construction.

Aside from being an incorporator, Lirome Aldrin Dela Cruz is the treasurer and corporate secretary of both MBL Group and Zhongjian Construction.  He also holds 15 percent ownership of MBL with P150,000 paid subscribed shares. He has 20 percent ownership of Zhongjian with P562,500 paid subscribed shares.

Lirome Aldrin listed  the Valenzuela address of the raided warehouse as his address in the SEC papers of the MBL Group and Zhongjian Construction.

Another incorporator of MBL, Chinese national Ning Jia, used the same Valenzuela address in the SEC records.

GMA News Research did a web search on “Lirome Aldrin Dela Cruz”, and found a match on Facebook. The profile of the FB account of the same name stated that he is “Collector at hong fei logistic company.”

SEC records show Joey Arcega as a director of MBL Group and Zhongjian Construction. Arcega holds 15 percent ownership of MBL with P150,000 paid subscribed shares, and 20 percent ownership of Zhongjian with P562,500 paid subscribed shares.

A web search of the name “Joey Arcega” yielded a Facebook account of the same name. In the social media account, the individual with the same name declared that he is “Driver at hongfei logistic.”

When asked about the identities and jobs of the Filipino incorporators, Gutoc said, “Richard Tan created these companies in accordance with law, which requires at least five incorporators.”

The Corporation Code of the Philippines states that a minimum of five people and maximum of 15 can be incorporators or can form a corporation.

Gutoc said he does not know if the incorporators work as collectors or drivers for Hongfei.

“These corporations were not created for the purpose of fraud,” Gutoc said.

Amendments

Chen’s four companies have similar histories of amendments.

The changes include revisions of name and addresses, increase in authorized capital stock, and overhauling of the company’s actual nature and purpose.

Zhongjian Construction’s amendment to its incorporation papers was to increase its authorized capital stock in July 2016. From Php 45 million, it was increased to Php 150 million.

The modification of Hong Fei Logistics in its incorporation papers was to shorten the term of existence of the company, which resulted in its dissolution.

Philippine Hongfei Logistics and MBL Wine revised their primary and secondary purposes.

From just “transport and delivery services”, Philippine Hongfei Logistics Group’s secondary purpose expanded to “exporting, importing, sale, purchase and distribution of general merchandise” in 2011. These general merchandise includes food items, and clothing and household materials.

A year later, the company amended its primary purpose from the business of warehousing and storage facilities to international sea and air freight forwarding, Non Vessel Owning Common Carrier (NVOCC), transporting, receiving, and delivering cargos.

MBL Group changed its name from the former MBL Wine Group (Philippines), Inc on March 12, 2014.

The word “wine” was not omitted from its corporation name, and from its primary purpose as well.

MBL’s original primary purpose was “To engage in the dealership for all the wines distributed by MBL Wine Group Limited, as well as responsible for the presentation, sales and business development in the Republic of the Philippines without engaging in retail activity".

In 2014, the company’s primary purpose changed to importation and exportation of various commodities. This includes machineries, steel products, furniture and related items of general merchandise.

Aside from dealership of wines, MBL’s secondary purpose further includes engagement in travel and tours, ecommerce, and cement manufacturing.

After a month and eight hearings, the Senate Blue Ribbon Committee has yet to conclude its probe.

The next hearing is set on September 18, Monday next week. —with reports from Jun Veneracion, GMA News, and GMA News Special Assignments Team/JST, GMA News