A sophisticated illegal cigarette manufacturing operation valued at PhP 799,151,453.54 was brought down by the Philippine National Police Criminal Investigation and Detection Group (PNP CIDG) following coordinated enforcement actions in Bago City and Bacolod City on April 22, 2026. The operation resulted in the capture of 10 foreign suspects.
Working alongside the National Tobacco Administration (NTA), Police Regional Office Negros Island Region, and municipal law enforcement units, CIDG operatives targeted manufacturing facilities suspected of producing and distributing contraband cigarettes without proper authorization.
Complex Criminal Enterprise Uncovered
The arrested foreign nationals—Fugong Jiang, Wu JianQun, Xu Ke, Li Hong, Ye Jun, A Yac, Tan Jing, Wu Shaobin, Eron Chen, and Pan Zongxing—allegedly managed the comprehensive illegal manufacturing network that commenced operations in the third quarter of 2025.
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Preliminary investigations indicate the suspects oversaw all aspects of the illicit enterprise, from raw material procurement to finished product distribution across multiple Philippine regions.
Coordinated Strike Operations
Mission Orders No. 001-2026 and 002-2026 were executed at 10:15 AM under CIDG Flagship OLEA OPLAN MEGASHOPPER, targeting strategic locations on Negros Island.
The primary site, situated at KM 14, Purok Rosas, Barangay Calumangan in Bago City, housed a major warehouse operation. The secondary location at Block 4, Lot 20, Vista Street, Barangay Singcang-Airport in Bacolod City served as an additional manufacturing hub.
Joint forces included CIDG RFU NCR, CIDG RFU NIR, CIDG Intelligence Division, RID PRO NIR, Bago Component City Police Station personnel, Philippine Manufacturing Company of Tobacco (PMFTC) representatives, and NTA officials.
Substantial Evidence Recovery
The Bacolod City facility contained the highest value contraband at PhP 536,596,565.28, including massive quantities of raw tobacco materials, comprehensive cigarette packaging labels, filter components, filter papers, tipping supplies, menthol liquid, and various packaging materials.
Meanwhile, the Bago City location yielded contraband worth PhP 262,554,888.26, featuring three complete cigarette manufacturing machine sets, three cigarette packing machine sets, assorted finished cigarette products, tobacco stems, cut fillers, packaging materials, labels, filter rods, and foil supplies.
Proper inventory protocols were followed throughout both operations, with NTA legal representatives, mandated witnesses, and barangay officials from both locations overseeing the documentation and marking procedures.
Nationwide Distribution Network Revealed
Intelligence gathered during the investigation exposed an extensive distribution system spanning Southern Luzon, Region VII, Western Visayas, and the National Capital Region. The widespread network demonstrates the operation’s sophisticated organizational structure and significant market penetration.
This expansive reach represents substantial tax revenue losses for the government while creating unfair competition against legitimate tobacco manufacturers operating under proper regulatory frameworks.
Worker Exploitation Concerns Emerge
Disturbing evidence of labor abuse surfaced during the investigation, revealing that Filipino workers were recruited with promises of PhP 500 daily compensation but allegedly received inconsistent or no payment.
Investigators discovered that certain workers faced movement restrictions within the manufacturing facilities, raising serious concerns about potential forced labor conditions and human trafficking violations.
These findings have broadened the criminal investigation scope to encompass possible human rights violations and trafficking-related crimes beyond the original tobacco manufacturing charges.
Comprehensive Legal Action Planned
Prosecutors are developing extensive criminal complaints targeting the foreign nationals and any additional co-conspirators identified through ongoing investigative work.
Planned charges encompass violations of Presidential Decree No. 1481 governing tobacco manufacturing regulations, Republic Act No. 9208 as amended concerning human trafficking, and Republic Act No. 12022 among other applicable statutes.
The multi-faceted legal approach reflects the complex nature of the criminal enterprise and its various illegal activities beyond unauthorized cigarette production.
Transparency and Evidence Integrity
All operational personnel deployed Body-Worn Cameras and Alternative Recording Devices throughout the entire enforcement action, ensuring comprehensive documentation and maintaining evidentiary standards required for successful prosecution.
This technological approach reinforces the PNP’s dedication to transparent law enforcement practices while building stronger cases for court proceedings.
Ongoing Anti-Crime Commitment
PNP CIDG leadership reaffirmed their dedication to dismantling illegal manufacturing operations, combating tax evasion schemes, addressing labor exploitation, and disrupting transnational criminal networks that undermine legitimate commerce and government revenue collection.
This successful operation exemplifies the government’s unwavering determination to shield consumers, protect legitimate industry players, and defend Filipino workers from criminal organizations masquerading as legitimate businesses.
Law enforcement coordination continues nationwide to locate and eliminate similar illegal operations, with special emphasis on worker protection and revenue stream security for government coffers.
Photo credit: Photo courtesy of PNP/NIR
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