DOTr Secretary Tugade says family’s offshore investment is legitimate

Department of Transportation (DOTr) Secretary Arthur Tugade responded to the allegations in regards to his family’s offshore investments that were revealed in the “Pandora Papers”. Tugade said that his family’s investment in an offshore company is legitimate. 

DOTr Secretary Arthur Tugade

The allegations that Tugade is facing came from documents that were reportedly leaked to the International Consortium of Investigative Journalists (ICIJ). The information on the said leaked documents showed that Tugade has been listed as a director of British Virgin Islands-based firm Solart Holdings Limited since 2007.

The Philippine Center for Investigative Journalism (PCIJ) stated that Tugade’s offshore company was not declared in his list of business in any of his Statements of Assets, Liabilities, and Net Worth (SALN) while holding a government position for the last eight years. 

The PCIJ added that Tugade has disclosed “offshore investments” worth Php 57 million as assets every year since 2012. However, details about the said investments have not been declared. To put things in perspective, public officials are required to declare such information in the SALN as per Republic Act 6713.

“When you say ‘offshore investment,’ that can mean cash deposits in banks [outside of the country] or shares of companies abroad. If it’s the former, then he has properly disclosed his assets, but if [it is supposed to mean he has an offshore company], then his SALNs are lacking,” former Bureau of Internal Revenue (BIR) chief Kim Henares said.

DOTr Secretary Arthur Tugade with President Rodrigo Duterte

Tugade was the president of Clark Development Corp. under the Aquino administration in 2012. Then in 2016, Tugade was appointed as DOTr secretary by President Rodrigo Duterte. During the said period, the Tugade has reportedly not declared Solart Holdings Limited in his SALNs.    

Tugade responded to the allegations thrown at him by saying that the offshore investments in Solart Holdings Limited were a “personal financial move” that was established long before he joined the government. Tugade also said that Solart Holdings Limited was organized in 2003 to hold a portion of its family’s cash assets. He also explained that the offshore account “barely moved” from 2012 to 2020. 

“Having some of our family’s savings invested in Solart Holdings was our legitimate attempt to grow our financial portfolio...We decided to have a portion of our savings invested outside the Philippines, which is valid and legal,” Tugade said in a statement. 

Tugade said he is not hiding anything

The DOTr Secretary goes on by stating that he is not hiding anything, and is aware of the oath he has taken as an appointed public servant. 

“As an appointed public servant, I have taken an oath to uphold transparency, honesty, integrity and good governance. These are cherished values that I personally believe in, and I have made it a lifelong commitment to sustain and carry around myself,” Tugade said. 

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