The Department of the Interior and Local Government (DILG), led by Secretary Juanito Victor C. Remulla, Jr., held a joint press briefing today, February 16, 2026, following the discovery and coordinated shutdown of large-scale illegal tobacco manufacturing operations in Pampanga.

 Secretary Remulla emphasized that illegal tobacco remains a serious national problem, draining resources crucial for public services. "In 2025 alone, the government lost approximately ₱30 billion in revenues intended for public healthcare due to illicit tobacco," he said.

The multi-agency operation, conducted in close coordination with the Bureau of Customs (BOC), Department of Agriculture, Philippine National Police (CIDG), and the Bureau of Internal Revenue (BIR), uncovered four illegal tobacco factories in San Fernando, Mexico, and San Simon, Pampanga. These facilities were operating without valid permits and producing unregistered tobacco products not listed under the National Tobacco Administration or approved by the FDA.

Evidence seized from the operations included cigarette-making and packing machines, tobacco drying equipment, raw materials, cigarette filters, and counterfeit BIR tax stamps demonstrating a well-organized nature of the syndicate. Authorities noted that the near-simultaneous shutdown of all four factories on January 29, 2026, strongly indicates that a single group orchestrated the illegal operations.

The factories were originally registered for other purposes, but operations ceased without proper permits in 2023 and illegally resumed in January 2026. All products produced in these facilities were found to be entirely illegal.

Legal cases are now being built under multiple laws, including the BIR's tax code (Republic Act 8424), the Anti-Agricultural Economic Sabotage Act of 2024 (RA 12022), the Customs Modernization and Tariff Act (RA 10863), the Consumer Act (RA 7394), and relevant environmental regulations.

Secretary Remulla reiterated that the DILG, together with partner agencies, will continue its enforcement operations until these illegal activities are fully dismantled and the public's funds protected.