Illegal Cigarette Factory Raided in Pampanga, Politicians Suspected of Financing Operation
An illegal cigarette manufacturing factory in Mexico, Pampanga, was raided on January 28, 2026, leading to the arrest of six Chinese nationals and the rescue of 65 Filipino workers, authorities announced today, .
The factory was capable of producing P150 million worth of cigarettes per day, according to the Department of the Interior and Local Government (DILG). DILG Secretary Jonvic Remulla disclosed the information following the raid in Barangay Panipuan.
During the operation, authorities discovered that the Filipino workers had been promised a monthly salary of P15,000 but were not compensated for their labor. Remulla described the situation as a clear case of human trafficking, noting the workers were living in substandard conditions, housed in structures built from wood and corrugated metal.
Remulla indicated that the investigation into the illegal cigarette operation has led authorities to suspect the involvement of two politicians from northern Luzon, who are believed to be financing the operation. “We suspect there are two northern Luzon politicians behind it,” Remulla said.
The raid follows earlier anti-smuggling operations in December 2025, where P1.1 billion worth of cigarettes were discovered in Batangas City and approximately P1.5 billion worth were seized in Malabon. These operations, along with the recent raid in Pampanga, are part of a broader effort to combat the proliferation of smuggled and unregistered cigarettes in the country.
Remulla stated that the illegal cigarette trade cost the national government an estimated P30 billion in unpaid taxes in 2024.
The operation involved personnel from the Philippine National Police (PNP) and the Bureau of Customs (BOC), demonstrating a coordinated effort to combat illegal tobacco production and trafficking. PNP Chief Gen. Jose Melencio Nartatez Jr., along with Remulla and BOC Commissioner Ariel Nepomuceno, inspected the raided facility today.
Authorities discovered three fully operational cigarette manufacturing machines at the facility. Investigations revealed that Samyoung Global Corporation leased the land for the factory, and the company’s incorporators include three Filipinos and two Koreans, who have been subpoenaed for questioning.
The combined value of seized cigarettes, machinery, and raw materials from recent operations now exceeds P10 billion, highlighting the scale of the illegal tobacco trade in the Philippines.
