Infamous Subic Con Man Arrested

One of Subic’s most notorious con-men and car smugglers has finally been arrested.

Peter Zahalka, the operator of JP Automobile Technique Subic Corp trading as Eurostar Motors, a motor repair shop inside the Subic Freeport at building 897, was arrested and jailed by the NBI for extortion and swindling.

This follows multiple complaints from former customers of his auto repair shop regarding the falsification of documents, stealing parts from customer’s cars, smuggling luxury cars, breach of contract and demanding money to return customers property to them.

Zahalka, an Austrian national (that’s the place next to Germany not the place with Kangaroos), was arrested last week in a NBI sting following the wave of reports about this unsavory character operating within the Subic Freeport. Zahalka was supposedly forced to leave Hong Kong about 5 years ago for similar offenses making The Subic Freeport a new home for his rackets. The NBI is now checking with Hong Kong Police for outstanding warrants.

Zahalka, a former Mercedes Benz workshop mechanic found an unusual supporter in then Governor Vic Magsaysay when he arrived to set up in the Freeport about 4 years ago. Magsaysay gave Zahalka a helping hand to get started obviously wanting someone local with the knowledge to fix his luxury cars, but Magsaysay soon found his name being used all over town by Zahalka to gain protection and influence.

Zahalka’s favorite MO was to import luxury vehicles with the manifest showing that the cars are wreaks for dismantling only, however the cars were only lightly damaged and Zahalka would have them on the road in no time selling them to local businessmen claiming that he had legally imported them and that he had the power inside SBMA to have the cars registered often with blue plates. Eventually the businessmen would leave the car at Zahalka’s shop for registration inspection but usually came back to find the car sold to someone else, stripped of parts or simply unable to be registered.

Frequently Zahalka would tell the owner of the car that "the Governor took it" indicating that Vic Magsaysay had come there and unlawfully taken possession of the customers vehicle, telling the customer that he could go and see the Governor to ask for his own car back but would likely end up dead. Leaving the customer swindled out of the value of the car. We doubt the former Governor had any idea that he was being accused of motor vehicle theft by Zahalka amongst the business community.

Sources close to the Subic Bulletin tell us that on learning about Zahalka’s nefarious activities and arrest, the former Governor was shocked and exclaimed that he wanted nothing to do with the cheating mechanic.

We have also learned that Zahalka, who is illegally residing in Philippines on a Visa that expired last September has shown complete disregard for Filipinos, especially those in his employment that have been cheated out of their SSS and Pag-Ibig benefits as required by the law and several undocumented workers even died or were permanently disabled while working at his workshop.

Late Friday we heard that the Bureau of Internal Revenue (BIR) was commencing an investigation based on hundreds of illegal receipts provided by customers proving that Zahalka had not complied with BIR laws for VAT that carry a penalty of 25,000 pesos for the first offense and 50,000 peso for succeeding offenses or for reporting of income.

Other NBI and CIDG complainants that have come forward since Zahalka’s arrest and reported numerous thefts and swindling by Zahalka including theft of parts from cars in the workshop, theft of items inside the vehicle and even the constant theft of gasoline from the gas tank of cars left in Zahalk’s care. It seems unbelievable that such a nefarious character can operate inside the Freeport.

Why has the SBMA failed to pick up the discrepancies in this operation, for that matter why has SBMA allowed this abusive lawbreaker and racist to remain in business inside the Freeport?

A few days ago Peter Zahalka made bail in Manila and headed back to his shop, but as he is facing numerous jail terms most people believe he will jump bail and run from the Philippines before his next court date.

His huge string of victims will be ecstatic to see him go forever, however, whether Zahalka runs or fights the overwhelming amount of charges against him, he will need cash, and it seems the only way Zahalka knows how to accumulate that kind of cash is by cheating others. Anyone who goes to Zahalka’s “Eurostar” workshop now is a target for the big “score” that he will need to fund his escape.

SBMA does know how to suspend/terminate leases, litigate its locators here is an opportunity for them to do it for the good of the Freeport and the community. SBMA should suspend the activities of this person at least pending the outcome of his criminal charges. This is a chance for SBMA to do the right thing and protect others.

The Subic Bulletin has obtained the contact information of the NBI officer in charge of this case, other victims wishing the adjoin the cases please email THE SUBIC BULLETIN for further information.