The Land Transportation Office (LTO) has launched an inquiry into the registration of two Bugatti Chiron sports cars following initial findings that there were “significant discrepancies” in the process, indicating potential irregularities.
The investigators were particularly interested in knowing how the luxury sports cars were issued license plates although documents including the sales invoice showed they cost only P1 million apiece, but the commercial invoice issued by the Avion Shipping Co. of Hong Kong indicated the amount at $255,000.
The registration papers also purported that the import duties paid for each car was P24,787,838.82 based on the certificate of payment (CP) issued to Frebel by the Bureau of Customs. The CP is required for the registration of imported vehicles with the LTO.
It will be recalled that Customs officials during a recent Senate hearing on the matter has placed
the commercial value of a 2023 Bugatti Chiron sports coupe at P65 million.
“The Sales Invoice Nos. 1859 and 1860 issued by Frebel Import and Export Corp., dated May 30, 2023 sold the two (2) Bugatti in the amount of one million pesos (P1,000,000.0), not indicating the VATable sale, VAT Exempt Sale, Zero rated Sale, Total Sale, and 12% Value Added Tax,” a report on the internal probe read in part.
The registration of the two controversial Bugatti sports cars were allegedly done under the old LTO-IT system operated by Stradcom Corp., which had been issued a request to submit an audit trail report to determine the LTO personnel involved in the registration of the two imported vehicles.
The probe also discovered the highly irregular accreditation issued by the LTO-National Capital Region to Customs broker Frebel Import and Export Corp.
It was also gathered that Frebel had been accredited as a vehicle importer and dealer by the LTO despite its lack of showroom and warehouse in its declared business address in Intramuros, Manila.
“The inspection report identified the absence of both facilities at the accredited entity’s registered address. Additionally, the report noted the lack of any visible import or dealer signage,” the probe report said.
“It was also noted that the address of Frebel Import and Export Corp., was under the jurisdiction of LTO-NCR West but during its initial accreditation as importer and dealer, it was endorsed by LTO NCR East,” the report noted.
It will be recalled that the German-led joint venture group, Dermalog-Holy Family Printing Corp.- Microgenesis JV- had earlier issued a statement clarifying that the two Bugatti sports cars had not
been registered with the LTO’s Land Transportation Management System (LTMS).
The Dermalog JV said the security features of the LTMS prevents such anomalous registration of motor vehicles with the LTO.
“(The) Bugatti Chirons flagged down by Senator Raffy Tulfo were not registered with the LTMS. The Bugatti Chirons would not have been able to be registered in LTMS as the robust security features of LTMS would have prevented such registration to occur,” the JV group said in a statement issued last Feb. 20.
“In light of the recent concerns and identified issues, this Office strongly recommends a comprehensive review of the current vehicle registration policies and procedures, especially Administrative Order No. AVT-2014 -023 dated January 14, 2014 and other procedures related to the registration and renewal of motor vehicles,” the report read.