The Philippine National Police Criminal Investigation and Detection Group (PNP CIDG) successfully dismantled a major illegal cigarette manufacturing and distribution network worth PhP 799,151,453.54 during simultaneous raids in Bago City and Bacolod City on April 22, 2026, resulting in the arrest of 10 foreign nationals.
The coordinated law enforcement operation, conducted in partnership with the National Tobacco Administration (NTA), Police Regional Office Negros Island Region, and local police units, targeted two facilities allegedly engaged in unlawful cigarette manufacturing and distribution activities.
Simultaneous Raids Target Two Major Sites
At approximately 10:15 AM on April 22, composite teams executed Mission Orders No. 001-2026 and 002-2026 under CIDG Flagship OLEA OPLAN MEGASHOPPER at two strategic locations across Negros Island.
The first target was a warehouse facility located at KM 14, Purok Rosas, Barangay Calumangan in Bago City. The second operation focused on a site at Block 4, Lot 20, Vista Street, Barangay Singcang-Airport in Bacolod City.
Personnel from CIDG RFU NCR, CIDG RFU NIR, CIDG Intelligence Division, RID PRO NIR, Bago Component City Police Station, Philippine Manufacturing Company of Tobacco (PMFTC) representatives, and NTA officials participated in the coordinated strikes.
Ten Foreign Nationals Face Criminal Charges
Authorities arrested 10 foreign nationals suspected of operating the illegal manufacturing network. The arrested individuals include Fugong Jiang, Wu JianQun, Xu Ke, Li Hong, Ye Jun, A Yac, Tan Jing, Wu Shaobin, Eron Chen, and Pan Zongxing.
Initial investigations revealed that the foreign nationals allegedly supervised the entire illegal operation, which reportedly began operations during the third quarter of 2025.
Massive Equipment and Materials Seizure
The Bago City facility yielded significant contraband worth PhP 262,554,888.26, including three complete sets of cigarette manufacturing machines and three sets of cigarette packing machines. Authorities also confiscated assorted finished cigarette products, tobacco stems, cut fillers, packaging materials, labels, filter rods, foils, and related manufacturing supplies.
The Bacolod City location contained even more valuable contraband estimated at PhP 536,596,565.28. Seized items included large quantities of tobacco raw materials, extensive cigarette pack labels, filter rods, filter papers, tipping materials, menthol liquid, and additional packaging supplies.
All confiscated items underwent proper inventory, marking, and documentation procedures conducted in the presence of NTA legal representatives, required witnesses, and barangay officials from both operational sites.
Wide-Reaching Distribution Network Exposed
Investigation findings revealed that the illegal operation distributed finished cigarette products across multiple regions, including Southern Luzon, Region VII, Western Visayas, and the National Capital Region. This extensive distribution network indicates a sophisticated and well-organized illicit trade operation.
The broad geographical reach of the criminal enterprise suggests significant potential revenue losses for the government through tax evasion and undermines legitimate tobacco industry businesses operating under proper regulatory compliance.
Labor Exploitation Allegations Surface
Authorities discovered troubling evidence of potential labor exploitation within the illegal manufacturing operations. Filipino workers were allegedly recruited with promises of PhP 500 daily wages, but investigators found that some workers were not paid as agreed.
More concerning, some workers were reportedly restricted from leaving the manufacturing premises, prompting authorities to examine possible elements of forced labor and human trafficking violations.
This discovery has expanded the scope of the criminal investigation beyond tobacco manufacturing violations to include potential human rights abuses and trafficking-related offenses.
Multiple Criminal Charges Being Prepared
Prosecutors are preparing comprehensive criminal complaints against the arrested foreign nationals and any additional suspects identified during the ongoing investigation.
The charges include violations of Presidential Decree No. 1481, which regulates tobacco manufacturing and distribution, and Republic Act No. 9208, as amended, addressing human trafficking concerns.
Additional charges under Republic Act No. 12022 and other related offenses are being considered as investigators continue examining evidence collected during the raids.
Enhanced Documentation and Transparency Measures
All participating operatives utilized Body-Worn Cameras and Alternative Recording Devices throughout the entire operation to ensure complete transparency, accountability, and evidentiary integrity.
This documentation approach strengthens the prosecution's case while demonstrating the PNP's commitment to proper legal procedures and evidence handling standards.
Government Commitment to Combat Organized Crime
PNP CIDG officials emphasized their continued commitment to intensifying operations against illegal manufacturing, tax evasion, labor exploitation, and transnational criminal activities that harm legitimate businesses and deprive the government of rightful tax revenues.
The successful operation demonstrates the government's sustained resolve to protect consumers, legitimate industries, and Filipino citizens from organized criminal enterprises operating behind commercial fronts.
Law enforcement agencies continue coordinating efforts to identify and dismantle similar illegal operations throughout the Philippines, with particular focus on protecting vulnerable workers from exploitation while safeguarding government revenue streams.
Photo credit: Photo courtesy of PNP/NIR