PBA chairman to be named Customs chief – sources

MANILA, Philippines -- Businessman Joselito Alvarez is set to be named commissioner of the Bureau of Customs (BOC) on Tuesday, filling a vacancy at the fiscal agency closely watched by the business community due to the problem of rampant smuggling in the country.

At least two sources from the business community and the government service have told the Philippine Daily Inquirer that Alvarez -- also the chairman of the Philippine Basketball Association -- will assume the post that was initially meant for former Customs and Internal Revenue Commissioner Guillermo Parayno Jr., who will now be named finance undersecretary in charge of revenue generation.

These sources familiar with the issue say that Alvarez may be sworn in by President Benigno Aquino III as early as Tuesday afternoon.

Alvarez is the manager of the basketball team Air21, which is the trade name of the cargo handling firm Airfreight 2100 Inc, the former local franchisee of US-based Federal Express. The company is owned by former Customs Commissioner Bert Lina.

According to one source, Alvarez's work experience includes a stint at the SGV & Co. where he met Finance Secretary Cesar Purisima, who was then the managing partner of the auditing firm.

Once he assumes the office of Customs commissioner, Alvarez is expected to relinquish his post as PBA chairman and Air21 duties.

According to another source, Alvarez was chosen as the "acceptable candidate" for the post of Customs chief after questions were raised in the media about Parayno's potential conflict of interest should he get appointed to the BOC.

Parayno's critics say he is a shareholder in another Lina-owned firm, which has an existing contract for information technology services with the BOC. He has countered, however, that he owns only a so-called "nominal" share in IT firm E-Konek, which is standard practice to allow company presidents to be named to its board of directors.

According to Parayno, E-Konek is only a sub-contractor of Unisys Inc. which is the firm that holds the parent contract with the BOC.

As undersecretary for revenue generation, Parayno will oversee the operations of both the BOC and the Bureau of Internal Revenue, run by his protegé Kim Jacinto-Henares.

Source: Inquirer