The local government unit (LGU) of Pola in Oriental Mindoro has called for a national ban on illegal tankers involved in the “paihi scheme,” a tax evasion practice where large vessels illegally transfer oil to smaller boats at sea.

Pola Mayor Jennifer “Ina Alegre” Cruz made the appeal during an event marking the second anniversary of the MT Princess Empress oil spill disaster that devastated Mindoro waters in 2023.

“This has been a long-standing issue. This is a national problem and they (national officials) should be the ones to solve it,” Cruz said. “The ones suffering are not them but our communities.”

The “paihi scheme” involves large tanker ships transferring petroleum products to smaller vessels in open waters to avoid tax payments and regulatory oversight.

Operators use this method to bypass customs inspections and evade paying proper duties and taxes.

The practice has caused environmental damage to coastal areas, harming local fishing industries and marine ecosystems.

Officials say these transfers often occur under cover of darkness with minimal oversight.

The Bureau of Customs has recently intensified efforts to combat the scheme.

In September, authorities impounded two fuel tankers in Navotas with over P20 million pesos worth of unmarked fuel.

Criminal charges were filed against crew members for transporting unmarked fuel in commercial quantities.

Cruz has urged the national government to provide resources for better monitoring and stricter implementation of maritime laws.

“We will continue to fight for the welfare of our fishermen and our coastal communities. The environment and their livelihoods are at stake,” the Mayor said.

Mindoro officials have been calling for the establishment of a comprehensive task force to combat illegal tankers and enforce environmental protection laws more effectively.

File photo: courtesy of The Philippine Star