Senators question CaLe88 labor costs of two employees after P150 million sales report

Senator-judges Joel Villanueva and Francis Pangilinan raised questions about the workforce and labor expenses of CaLe88 Foods Corp. after a Bureau of Internal Revenue (BIR) witness presented records showing the banana-chip manufacturer recorded more than ₱150 million in sales in 2024.

Villanueva pointed to a company filing that appeared to list only two employees, while Pangilinan questioned whether the company's declared salaries and wages were consistent with its reported manufacturing activities.

“This is alarming, Your Honor. You’re looking at a company with ₱150 million sales, ₱6.13 million ang losses. Dalawa yung empleyado,” Villanueva told the Senate impeachment court on October 9.

BIR Chief of Staff Attorney Anne Loraine Garcia-Marquez presented CaLe88’s 2024 financial records, which showed ₱150,595,605 in exempt sales and another ₱169,564 in sales subject to regular income tax. She also confirmed the company incurred losses of about ₱6.13 million that year.

Villanueva sought an explanation for the losses and asked who financed the company’s operations despite its negative earnings.

Garcia-Marquez cited approximately ₱11.43 million in reported expenses, covering salaries, utilities, vehicle costs, freight and consulting services. She recalled a note stating that management would shoulder the expenses while the company was losing money, although she could not locate the document during the hearing.

The senator also examined the company's 2023 financial statements, which reflected around ₱23 million in gross sales, ₱3.33 million in direct labor costs and a separate ₱205,000 in salaries and wages. He asked how many employees or contractors were covered by these expenditures.

Garcia-Marquez said the financial statements provided aggregate figures but did not specify the number of workers. She added that she did not have the company's employee list with her.

“Kung kaunti lang yung employee, paano na-handle yung ganitong kalaking operations?” Villanueva asked.

The senator's reference to two employees appeared to be based on CaLe88's 2025 general information sheet. However, the BIR witness did not confirm that the company employed only two people during the year it reported more than ₱150 million in sales.

Garcia-Marquez also clarified that she had no firsthand knowledge of the company's operations. She said it would seem “parang impossible” for a banana-chip manufacturer to operate with only two employees unless machinery performed much of the work.

Villanueva subsequently asked for CALE88's reported salaries and wages for 2024. Garcia-Marquez read the amount as ₱1,227,042 based on the company's audited financial statements.

The figure, however, did not establish the company's overall labor expenses, as the senator had previously cited separate entries for direct labor and salaries and wages in its 2023 statements.

Pangilinan later returned to the ₱1.227-million figure and confirmed that it represented expenses for an entire year. He questioned whether the amount was consistent with the company's reported business activities.

“But does that raise a question for the declaration and the document that was submitted to you?” Pangilinan asked.

“Yes po, and it will be checked sa audit po,” Garcia-Marquez replied.

Villanueva also questioned whether CaLe88's sales invoices, shipping records and logistics expenses could substantiate the goods it reportedly supplied through foreign transactions.

Garcia-Marquez said she had the company's audited financial statements and annual income tax return but not the invoices and other supporting documents. She said BIR revenue officers would examine these records as part of the company's audit.

Villanueva said he wanted to determine whether CaLe88's reported sales and overseas transactions were backed by corresponding workers, suppliers and production records.

“I’m not saying I’m presuming this is a fictitious operation,” he said. “Just alarming.”